SPOTLIGHT
Investors ’ Confidence anchored by Logistics and Healthcare Sectors
By Gunaprasath Bupalan
51
More than a year into Malaysia ’ s first lockdown on 18 March 2020 , the country continues its uphill battle to contain the spread of novel coronavirus ( COVID-19 ) despite the kick-off of the National Immunisation Programme since end- February , 2021 . The resurgence of COVID- 19 cases has led to the country being placed under several movement control orders this year , with the latest being the full lockdown ( FMCO ), re-imposed on 1 June 2021 .
Effective 3 July 2021 , several localities in Kuala Lumpur and sub-districts in Selangor are under a 2-week enhanced movement control order ( EMCO ) due to the high number of daily infections in Klang Valley .
The prolonged strict containment measures continue to adversely impact economic and business activities , as well as daily lives . On 28 June 2021 , the Prime Minister , Tan Sri Muhyiddin Yassin unveiled the National People ’ s Well-Being and Economic Recovery Package ( PEMULIH ) worth RM150 billion with a direct fiscal injection of RM10 billion . This is in addition to several earlier financial aid packages totalling some RM380 billion to protect the people ’ s welfare and support businesses amid the unprecedented crisis .
Sarkunan Subramaniam , Managing Director of Knight Frank Malaysia raises concern about the survival of non-essential services which continue to bear the brunt of the lockdowns . The hospitality industry continues to bleed due to international travel bans , restrictions in interstate travel and cancellation of major events amongst other reasons . Similarly , the retail industry has also been badly impacted due to various phases of lockdowns and subdued consumer sentiment .
Property360Digest e-magazine Issue # 9 - 2021
As more businesses close down and hotels cease operations , the country ’ s unemployment rate is expected to rise .
Sarkunan hopes that the vaccination programme will continue to be ramped up as the country ’ s economic recovery hinges on its success to reduce the number of daily new infections and contain further outbreak .
Key players in the commercial property industry are optimistic on the logistics and healthcare sectors but remain cautious on the traditional retail and office segments as well as on the hotel / leisure industry .
The severe disruptions to supply chains globally which revolutionised e-commerce services , continues to drive the logistics sector whilst the critical need for good medical and healthcare support amid the pandemic coupled with attractive tax incentives is expected to see growth in the healthcare sector .
“ The hospitality industry continues to bleed due to international travel bans , restrictions in interstate travel ”