KUALA LUMPUR: Newly-listed Integrated property developer MCT Bhd sees itself incurring a lower construction cost of 1.3 per cent from the Goods and Services Tax (GST).
This is in contrast to the 2.6 per cent post-GST impact estimated by the Real Estate and Housing Developers’ Association Malaysia (Rehda).
Rehda made this observation after taking into consideration the construction cost, which constitutes 46 per cent of the total development.
MCT Non-Independent Executive Director and Chief Executive Officer Datuk Seri Tong Seech Wi said as an integrated developer, it had in-house construction and trading companies as well as design team, to minimise the GST impact.
“Taking all this into account, we would possibly face only half the GST impact of 2.6 per cent projected for typical developers, although this figure has yet to be properly confirmed,” he told reporters after the company’s listing on the main market of Bursa Malaysia here today.
At 12.19 pm, MCT’s shares were traded at RM1.35 after opening at RM1.43 with 10.04 million shares changing hands.
Tong also said the modular construction technique approach, which involves simplifying building elements into standard modules, pre-fabricating and assembling into the finished product, helped the company reduce costs.
Meanwhile, Executive Director Lim Kok Boon said MCT Bhd’s higher opening share price showed that investors and shareholders were confident of its prospects.
“The presence of our prominent Philippine-based investor, Ayala Land Inc president and chief executive officer in the boardroom, also indicates that people see the value of our company,” he added.
Ayala Land’s market capitalisation stood at about RM44 billion. The two companies are expected to generate much synergy in tapping the domestic market.
MCT undertook a reverse takeover of Practice Note (PN) 17 GW Plastics Holdings Bhd and disposed off its plastic film packaging business to concentrate on the property segment.
To date, the gross development value (GDV)of MCT’s on-going projects, stands at RM2.26 billion. The GDV of future projects GDV is at RM6.72 billion, excluding a remaining 119.787-hectare landbank. -- BERNAMA