The market and demand for homeownership remain strong with a full return to growth expected by 2022, says kitchen cabinet maker Signature International Bhd.
Chairman Datuk Seri Dr Mohd Shafei Abdullah said this would have a positive spillover effect on the company.
Mohd Shafei said the market has responded with a favourable shift from speculators to actual home owners, with the Home Ownership Campaign (HOC) 2020 putting pressure on residential home prices.
Under the HOC 2020, developers are required to offer discounts from 10 per cent for projects during the campaign period, to encourage first-time homebuyers and offer value-for-money homes.
Mohd Shafei said these initiatives are projected to have a positive impact on the overall property market.
However, he said that significant market revival is not expected until the full extent of the government’s ongoing ‘lockdown’ measures until the end of 2020 is taken into account.
Mohd Shafei said in a statement in the company’s annual report filed with Bursa Malaysia today that the board puts full support behind the company’s current strategic direction, in line with existing long-term plans and response to the Covid-19 pandemic.
The company is well placed to ride the recovery momentum with additions to the project order book which stood at RM361 million as at the end of July 2020, he said.
Mohd Shafei said these orders comprise new and outstanding orders delayed by the Movement Control Order (MCO) and Recovery Movement Control Order (RMCO) covering the company’s kitchen and wardrobe systems, as well as the aluminum and glass projects segments.
The company views the current order book as a tangible expression of confidence in its position as a leading and trusted provider to residential property market developers whose performance has been temporarily affected by the Covid-19 pandemic, he said.