Malaysia’s property market recorded moderate growth in 2025, demonstrating resilience amid ongoing global economic uncertainties. This resilience is attributed to the country’s strategic location, cultural diversity, and continued implementation of supportive government policies, which sustain its attractiveness to both investors and homebuyers. In July 2025, Bank Negara Malaysia announced a cut in Overnight Policy Rate (“OPR”) by 25 basis point to 2.75%, making this the first rate cut since May 2023. This pre-emptive measure aims to preserve Malaysia’s steady growth trajectory amid moderate inflation expectations. The lower OPR is expected to create a more conducive environment for homebuyers and investors by reducing borrowing costs and improving housing affordability. As the ringgit remains relatively firm heading into late 2025, the property market is anticipated to reflect a subtle shift where foreign currency buyers may become more cautious, but local investor interest especially in industrial land segments may strengthen. The stronger ringgit underpins confidence, but property fundamentals like location, connectivity, infrastructure remain core. Several housing-related incentives were rolled out under Budget 2026, which was tabled in October 2025, focusing on easing homeownership for first-time buyers, encouraging adaptive reuse of commercial buildings, and ensuring inclusivity across communities. Key measure includes full stamp duty exemption for first-time homebuyers purchasing residential properties priced at RM500,000 or below. This exemption, originally set to expire earlier, now continues until 31 December 2027, giving buyers a longer window to plan and secure financing without the burden of transfer and loan stamp duties. Amidst the current challenging economic environment, the Group believes that demand for properties in prime locations within Tropicana’s established, mature, and developing townships will persist, supported by attractive pricing and a variety of promotional packages. Furthermore, the Group expects improved sales, especially for its properties in Johor, following the recently signed definitive agreement relating to the Johor-Singapore Special Economic Zone, the Johor BahruSingapore Rapid Transit System Link project, as well as the anticipated positive impact from the potential revival of the High-Speed Rail project. Premised on the expected demand, the Group will continue to launch properties at strategic locations across the Klang Valley, Genting Highlands, and the Northern and Southern regions. In FY2026, the Group plans to introduce new developments and phases across its signature a mixed development comprising Bora Serviced Apartments located at Tropicana Danga Bay, Johor; Odesea Serviced Apartments located at Tropicana Shores, Langkawi; Maia Solana, Maia Calista and Maia Estela located at Tropicana Lagoon, Langkawi; Serviced Apartments and Retail Shops located at Tropicana Avan, Cyberjaya and Idaman Tower located at Tropicana Aman, Kota Kemuning. Detailed analysis of the various business segments are as follows: Property Development & Property Management The property business remains the foundation of the Group’s operations, serving as the primary driver of our endeavours. Our portfolio encompasses a diverse range of township developments across various regions, demonstrating our commitment to excellence and innovation. The property development and property management segments generated revenue of RM1,418.0 million for the full financial year, representing an increase of 15.5%, or RM189.9 million, from RM1,228.1 million in FY2024. This segment reported a higher profit of RM53.3 million compared to a loss of RM19.7 million in FY2024. The higher segmental revenue and profit in FY2025 was mainly due to healthy sales across new and ongoing projects, coupled with continued revenue recognition from unbilled sales. Overall, this segment continued to be the main contributor to total Group revenue at 94.5%. AR 2025 | MANAGEMENT DISCUSSION & ANALYSIS 74
RkJQdWJsaXNoZXIy NDgzMzc=