Property market to grow in three months, says Najib
Gan Yen Kuan Sun

KUALA LUMPUR (Dec 19, 2006): The property market is expected to grow in the next three months boosted by the implementation of the Ninth Malaysia Plan (9MP), a better stock market outlook and the manageable interest rate, says Deputy Prime Minister Datuk Seri Najib Razak.

"Based on the analysis done by various parties, it is expected that the property sector will expand. The implementation of the projects under the 9MP will contribute to the growth of the property sector," he said.

"There is also assumption that our stock market will perform better next year. If Bursa Malaysia continues to improve, I think the property market should move upward in tandem with the positive developments.

"With the interest rates for loans, which are controlled at a reasonable level, financial institutions could provide good financing packages for housebuyers."

Speaking to reporters after launching the Alam Impian residential project developed by Island & Peninsular Bhd in Shah Alam today, Najib said the market believed that the interest rate of 3.5% was already at its peak.

Najib did not rule out the possibility for other Permodalan Nasional Bhd (PNB)-related companies to merge, as in the case of Sime Daby Bhd, Golden Hope Plantations Bhd and Kumpulan Guthrie Bhd, as mergers could derive better synergies.

"It is part of rationalisation. When you rationalise, you tend to be able to save expenses and costs because there is a lot of synergies that can be derived from putting the various operations similar in nature under one roof," he said.

"It is up to PNB to decide, but already there is a degree of rationalisation. It is up to the management of PNB to look into, whether there is a case for consolidation and rationalisation.

"The government will be guided by what PNB feels is good."