The economic costs associated with Covid-19 go beyond those incurred by any other previous crises. A majority of business activities was affected and three economic stimulus packages totaling RM260 billion have been announced by Putrajaya as a fiscal response to ease the burden of the people as well as to support the business community.
However, no measures have yet to be formulated to assist the property sector.
Although the lower interest rate environment created by Bank Negara Malaysia (BNM) by cutting the overnight policy rate (OPR) by 50 basis points (bps) to 2% coupled with the 6-month automatic deferment of all loans could help prevent immediate fallout of the property market, these measures are not enough to spur demand.
Given that the property sector’s spill over effect on other sectors can contribute up to 14% of the country’s GDP; measures are needed to stimulate the property market.
Media Title: EdgeProp.my
Date: 29 May 2020