SP Setia bets on Johor boom, green industry and 2027 Budget homebuyer incentives

KUALA LUMPUR: SP Setia Bhd anticipates that the government's 2027 Budget initiatives promoting homeownership, green investments, and construction sector resilience will bolster the property industry's growth outlook, with Johor set to gain significantly from improved economic ties with Singapore. Datuk Zaini Yusoff, SP Setia's president and CEO, highlighted the group's strategic alignment with the Johor-Singapore Special Economic Zone (JS-SEZ) and regional connectivity, which complement its existing operations in Johor and expanding industrial development portfolio.

The continuation of green investment incentives under the Green Investment Tax Allowance will further bolster SP Setia's commitment to sustainability in the development of Setia Fontaines Industrial Park. Zaini emphasized that these initiatives align with the company's strategy to enhance its industrial platform alongside its core township business.

Regarding the residential sector, Zaini welcomed the extension of stamp duty exemptions for properties up to RM750,000 until 2030, stating that the measure would enhance homeownership affordability and stimulate housing demand. He acknowledged the government's persistent focus on homeownership, infrastructure, and investment-led growth, asserting that the stamp duty exemption extension is a significant measure to assist homebuyers and residential market demand.

From a construction perspective, SP Setia welcomed the reintroduction of the Variation of Price (VOP) mechanism to help the industry navigate fluctuations in critical inputs such as diesel and bitumen. The mechanism provides greater certainty for contractors, fostering a more resilient construction ecosystem. However, the company stressed the need for ongoing attention to construction and housing development costs to ensure the accessibility of quality homes for Malaysians.

SP Setia emphasized that enhancing productivity, procurement efficiency, and overall delivery costs would be vital in balancing affordability with the sustainability of the property and construction sectors. The company also backed the government's long-term goal of increasing affordable housing supply under the 13th Malaysia Plan, asserting that public-private partnerships could result in the creation of high-quality, sustainable, and well-connected communities.

In summary, the 2027 Budget offers a constructive platform for the property and construction sectors, striking a balance between supporting homeownership and fostering investment, sustainability, and industry resilience. SP Setia expressed its enthusiasm to contribute to Malaysia's forthcoming era of sustainable economic development, according to Zaini.