Mah Sing to go full speed ahead with gloves & healthcare diversification as it obtains nearly 100% shareholders approval at EGM

KUALA LUMPUR, 21 December 2020 – Mah Sing Group Berhad (Mah Sing) has received shareholders’ approval for the Group’s proposed diversification into manufacturing and trading of gloves, and related healthcare products via Mah Sing Healthcare Sdn. Bhd (Mah Sing Healthcare), at the Extraordinary General Meeting (EGM), held virtually today.

“The support entrusted by the shareholders marks a strong validation to the Group especially on our new journey into the new glove manufacturing business. The proposed diversification which predominantly targets the global market is expected to enhance our existing manufacturing division and we are exploring the possibility of listing our manufacturing division within the next five years in Hong King to further unlock its value in the future. The proposed diversification will also be a good complement to our existing core property development business which is focused on the domestic market”, said Mah Sing’s Founder and Group Managing Director, Tan Sri Dato’ Sri Leong Hoy Kum.

Apart from the proposed diversification into glove business under its manufacturing division, Mah Sing will also continue concentrating on its existing property development as it remains a key focus of the Group moving forward.

“Our property division has been resilient as positive take-up of our newly launched projects reflects that home buyers are still looking out for their ideal homes. We always believe that demand will persist for the right product, in the right location, and at the right pricing. Our rapid speed in planning and marketing the new developments are in line with our quick turnaround model and augers well for our growth strategy,” he added.

The first 6 production lines at Mah Sing’s first glove manufacturing factory in Kapar, Klang is on track to be operational as planned in 2Q 2021, followed by another 6 lines expected to be ready in 3Q 2021, which in total has a maximum capacity of up to 3.68 billion pieces of gloves per annum.

Structural increase in glove usage as a result of new norms, fears of re-infection, higher health awareness and hygiene compliance requirements for healthcare and non-healthcare sectors, will continue to see strong demand for the gloves – even post-pandemic where vaccines will then be available.

This would follow suit for the property market as economies gradually improve whereby to this end, Mah Sing will continue to be on the active lookout for any arising opportunities – be it the manufacturing and property businesses respectively.

Mah Sing may also explore to venture into related healthcare products such as personal protective equipment, pharmaceutical or medical products and services as well as related upstream and downstream activities if the demand for such products or services arises.

As at 30 September 2020, Mah Sing managed to achieve property sales of approximately RM847.1 million and is on track to achieve its RM1.1 billion sales target this year. The new landed projects recently launched by Mah Sing witnessed strong response, with Carya @ M Aruna recorded a 90% take-up during its launch over the weekend, with the good sales showing improving sentiments and confidence in the market. This is reflected as well for Acacia 2 in Meridin East, Johor which achieved over 80% take up at its weekend launch in early December.

In addition to that, the Group’s new high rise projects launched during the RMCO – M Adora in Wangsa Melawati recorded over 90% take-up for its Tower A in their weekend launch, while M Luna in Kepong has over 80% take-up for its Tower A since its launch this year.

Mah Sing’s projects which are under construction have also shown significant progress, with M Vertica’s Tower A in Cheras and M Centura in Sentul scheduled to have their topping up ceremony in Q1 2021, which symbolises the completion of the structure of the development.

Similarly, the official opening of the NSK Trade City @ Star Avenue Lifestyle Mall last Friday, signalling businesses are gradually recovering from the impact of COVID-19 pandemic this year.

Meanwhile, according to a RHB Investment Bank’s sector report dated 16 December 2020, the research firm noted media reports quoting a source stated that the Government may go ahead with the High Speed Rail (HSR) project.

If it happens, there will still be positive spillover effects for the local property areas where the proposed HSR alignment passes through, as well as multiplier effects for the local business and the Malaysian economy.

“The confidence towards the property market is recovering and is seeing an upswing in line with a better economic outlook in 2021, driven by various property friendly measures by the government. The mid to long term outlook remains positive supported by strong fundamental demand for property due to our country’s young demography. Backed by our healthy balance sheet, we will continue to explore selective land banking suitable for affordably priced products, which will spur our future growth,” he added.

Source: iProperty