In summary, the key drivers for Malaysia’s property market growth are: 1. Infrastructure Projects Transformative infrastructure developments remain a key catalyst for Malaysia’s property market growth by enhancing connectivity and unlocking new development corridors. The Johor Bahru–Singapore RTS Link, expected to be operational by late 2026, is set to boost the Johor property market by improving cross-border mobility and economic integration. Meanwhile, major rail projects such as the MRT3 Circle Line in the Klang Valley and the Penang LRT Mutiara Line, together with large-scale initiatives like the East Coast Rail Link (“ECRL”) and the Pan Borneo Highway, are strengthening regional connectivity, supporting economic activity and driving property demand in emerging growth areas. 2. Economic Stability & Partnership On 13 February 2026, Bank Negara Malaysia (“BNM”) projected that the Malaysian economy will grow between 4.5% and 5.0% in 2026, strengthening purchasing power and reinforcing investor confidence. In July 2025, the Department of Statistics Malaysia (“DOSM”) reported that the labour force participation rate remained steady at 70.8%, while the unemployment rate stayed low at 3.0%, supporting private consumption and housing demand. Complementing these positive fundamentals is the stable interest rate environment, with the Overnight Policy Rate (“OPR”) at 2.75%, providing a predictable financing landscape for homebuyers and investors. 3. Government Initiatives Government policies and strategic national initiatives continue to play a key role in supporting Malaysia’s property market growth. Under the Madani Housing reforms and Budget 2026 initiatives, measures such as stamp duty exemptions and improved financing accessibility are aimed at encouraging homeownership, particularly among first-time buyers. Meanwhile, the revamped Malaysia My Second Home (“MM2H”) programme, with its tiered participation categories, is attracting greater interest from affluent foreign investors seeking long-term residency and property investment opportunities. In addition, the Johor-Singapore Special Economic Zone (“JS-SEZ”) is expected to transform Southern Johor into a highgrowth corridor, driving demand for both industrial and residential properties while strengthening the region’s role as a key economic gateway. The Johor Bahru - Singapore RTS Link which is scheduled for completion by end-2026, with operations slated to start in January 2027. AR 2025 | MANAGEMENT DISCUSSION & ANALYSIS 44
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