PropertyGuru, Photo Credit to PropertyGuru
clock 18-10-2019
hit 254

Technology, Property Key Winners in Budget 2020

Technology and property sectors emerged as clear winners in Budget 2020, said most analysts. Kenanga Research noted that Budget 2020 turned out to be mainly positive for corporate Malaysia since most of the measures unveiled were people and business-friendly. 

It explained that the technology sector wins due to the generous grant incentives allocated for the digitisation of operations of small and medium enterprises (SMEs), the 10-year tax exemptions for certain electrical and electronics (E&E) firms, incentives for adoption of e-wallet as well as the extended period of capital allowances for automation initiatives, reported The Sun Daily.

Property also wins due to the roll-out of rent-to-own financing scheme, the reduction of the threshold for foreign property buyers of unsold high-rise property stock from RM1 million to RM600,000, added Kenanga.

“We see banks benefiting too from measures to support SMEs and the property sector. We make no changes to earnings forecasts and but raised our sector call on the property from neutral to overweight as prices of many stocks in the sector have fallen well below their respective target prices,” it said in a note.

CGS-CIMB, on the other hand, believed Budget 2020 was mildly positive for the market given that there were more positive surprises than negatives.

“We project the Budget measures to be neutral to KLCI earnings but mildly positive for future corporate earnings.”

It expects the lower threshold for foreign property purchase to help address some of the existing property overhang, even as the impact may not be significant.

“The lower threshold price for foreign buyers could potentially benefit mass-market developers focusing on the affordable product range such as LBS Bina Group Bhd and Mah Sing Group Bhd,” said CGS-CIMB.

Tags / Keywords:



Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook name, photo & other personal information you make public on Facebook will appear with your comment.


Monthly Column
The staple of your property-related materials. It's all about being ahead of the game and with The Column, you get carefully selected information that will keep you informed and running with the pack. The best news, articles and properties on the market from the Property Hunter portal, conveniently wrapped and ready, just for you.

Weekly Window
Your weekly dose of what's hot and what's not in property. The window is your view into the realm of real estate in Malaysia, curated from our portal based on the most popular pieces over the week. For those who just can't get enough, this is for you. Ain't nobody got time for dailies anymore, weekly is the new daily.