Property sector may lag, despite ERP incentives
The Short-Term Economic Recovery Package (ERP) valued at RM35 billion may boost the country’s economy but there are concerns that the property sector will lag amid larger unemployment and pay cuts brought about by the Covid-19 pandemic.
“A lot of small-medium enterprises, government-linked firms, and public-listed companies (PLC) are retrenching or asking their employees to go on unpaid leave until the situation improves. They are also cutting staff salary by up to 40 per cent and terminating contracts.
“So who will benefit from this stimulus package and who is addressing the issue of people losing their jobs or getting pay cuts? There are more than one million job losses now since the outbreak of the Covid-19.
“With the unemployment rate set to rise by the end of this year, more people will be skeptical to do anything concerning a big-ticket item like property. These include buying, selling, renting a new property and renovation. This will dampen property transactions,” said the ex-chief executive officer and chief operating officer of several PLCs.