PETALING JAYA: Paramount Corp Bhd, which is planning to acquire a 28% stake in Singapore-listed food and beverage (F&B) firm Envictus International Holdings Ltd, cautions that its property sales are likely to remain soft in the second half of 2025 (2H25).
Group chief executive officer Jeffrey Chew Sun Teong said the group’s RM600mil property sales achieved so far fall short of its RM1.5bil full-year target for the financial year ending Dec 31, 2025 (FY25).
“There is a chance that we may have to revise our sales target. We do not see many catalysts to boost the property market in 2H25.
“While we do not expect it to be very good, we also do not foresee it collapsing.
“The market is softer this year than in 2022 to 2024, which saw steady improvement following the Covid-19 pandemic,” he said during the briefing to elaborate on the company’s proposed acquisition of Envictus.
Touching on headwinds, Chew said the US tariff is a “big concern”. And with the impending cost escalation from the fuel subsidy rationalisation initiative and the expanded sales and service tax, he said buyers are holding back.
He added that Bank Negara’s recent 25-basis-point interest rate cut to 2.75% is positive for companies by lowering borrowing costs and for homebuyers, as they make housing more affordable. However, Chew said this reduction was “not enough (to spur demand) unless there are two more rate cuts”
As published: The Star