E&O yet to see impact from revamped MM2H programme on property sales, says MD
KUALA LUMPUR (Nov 26): Property developer Eastern & Oriental Bhd (KL:E&O) said on Tuesday that it had yet to see notable impact from the revamped Malaysia My Second Home (MM2H) programme on its sales.
Current demand for properties is primarily driven by local buyers, E&O managing director Kok Tuck Cheong told reporters after the release of the group's results for the second quarter ended Sept 30, 2024 (2QFY2025).
“We have yet to see a significant impact from MM2H applications. However, I am confident this programme will eventually provide a boost to our [property sales], mainly in Penang.
"Penang’s ongoing infrastructure developments significantly enhance its appeal, making it an even more attractive destination for both residency and holiday visits," Kok said.
Launched in 2002, the MM2H programme aims to attract foreign retirees and long-term residents. Recent revisions of the guidelines, approved by the Cabinet in June, have made the programme more accessible. These revisions include a reduction in fixed deposit requirements to RM500,000 (down from RM1 million), while the offshore income requirement of RM40,000 per month has been removed.
E&O, which is on track to record RM1 billion property sales for its FY2025 ending March 31 next year, recorded total sales of RM377.6 million as of end-September this year.
Penang contributed 67% of total sales, followed by the Klang Valley (27%), and Johor (6%). Major contributors included the Senna and Ferra project, which generated RM100.3 million, and The Lume, which brought in RM152.1 million, both located on Andaman Island, Penang.
The group’s unbilled sales now stand at a record high of RM1.46 billion, ensuring earnings visibility until FY2026.
E&O plans to launch three major projects on Andaman Island, Penang, between 2024 and 2025. These include Marina apartments, landed homes, and additional high-rise residential development projects, which have a combined estimated gross development value of RM1.63 billion.
The group also wants to expand its land bank, particularly in the Klang Valley. E&O’s current land bank portfolio comprises 1,107.9 acres (448.4 hectares) in Penang, 375.4 acres in the Klang Valley, and 32.9 acres in Johor, its latest annual report showed.
“We continue to explore opportunities outside Penang, particularly in the Klang Valley, depending on prices and market attractiveness,” Kok added.
On Tuesday, E&O shares closed one sen lower at 93.5 sen, valuing the company at RM1.96 billion. Year to date, the stock has risen over 58%.
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