By Syafiqah Salim
KUALA LUMPUR (July 30): Paramount Corp Bhd (KL:PARAMON) is flagging softening property sales as domestic and external worries dampen demand, after lagging behind its target.
Outlook for the second half remains subdued amid concerns ranging from tariff risks to fuel subsidy rationalisation locally, group chief executive officer Jeffrey Chew Sun Teong said at a briefing on Wednesday. There are few catalysts to spur recovery in the property market, he noted.
“There’s a chance we may have to revise (lower) our sales target,” he said. “We are seeing a softening in the market.”
Paramount has achieved RM600 million in property sales — still far from its full-year target of RM1.5 billion for the financial year ending Dec 31, 2025 (FY2025).
Malaysia’s economy is poised for a slowdown this year, and the central bank has pre-emptively moved to cut policy rate earlier this month to shield the economy from external risks.
Malaysia is negotiating with the US for a trade agreement. The window for a deal before the deadline on Aug 1 appears closing, leaving Malaysia within the global baseline tariff of 15% to 20% for countries that have not negotiated separate trade agreements with the US.
“Tariff is a big concern, and with the anticipated cost increases from fuel subsidy rationalisation and the expansion of the sales and service tax (SST), buyers are holding back,” Chew said, noting that the company is bracing for potential higher cost from contractors for its upcoming project launches.
Meanwhile, Bank Negara Malaysia’s recent 25 basis-point interest rate cut to 2.75% is “not enough” to stimulate demand, Chew said. “Unless there are two more rate cuts, I don’t think we’ll see a meaningful pickup in property buying activity for this year,” he added.
At Wednesday’s noon break, Paramount’s share price slipped one sen or 0.91% at RM1.09, giving it a market capitalisation of RM678.8 million.
As published: The Edge