PROPERTY
 [%dBZP%] [%KWLi%] [%KBLB%] [%kuls%] 
Research by HLIB
Overweight

“Updated MM2H conditions”

On June 15, the Ministry of Tourism, Arts and Culture announced updated guidelines for the Malaysia My Second Home (MM2H) programme, which now includes three categories: Silver, Gold, and Platinum, along with a special category for Special Economic Zones (SEZ) and Special Financial Zones (SFZ). The new MM2H guidelines, which received Cabinet approval, are more relaxed than the 2021 version, with reduced requirements for fixed deposits, offshore income, and liquid assets, but introduces a new requirement for house purchase, which is mandatory for MM2H holders. The revised conditions are expected to renew interest in MM2H, positively impacting the property sector, especially on the high-end segment. However, the program could face competition from similar programs in Thailand and Indonesia. We upgrade the sector rating to OVERWEIGHT from Neutral as we think the sector had entered a new cycle. Our sector top picks are IOIPG, OSK, SimeProp, and Sunway.

Analyst(s):
Tan Kai Shuen, CFA
[%Nmdw%]

PROPERTY
 $KLSE-IOIPG $KLSE-OSK $KLSE-SIMEPROP $KLSE-SUNWAY 
Research by HLIB
Overweight

“Updated MM2H conditions”

On June 15, the Ministry of Tourism, Arts and Culture announced updated guidelines for the Malaysia My Second Home (MM2H) programme, which now includes three categories: Silver, Gold, and Platinum, along with a special category for Special Economic Zones (SEZ) and Special Financial Zones (SFZ). The new MM2H guidelines, which received Cabinet approval, are more relaxed than the 2021 version, with reduced requirements for fixed deposits, offshore income, and liquid assets, but introduces a new requirement for house purchase, which is mandatory for MM2H holders. The revised conditions are expected to renew interest in MM2H, positively impacting the property sector, especially on the high-end segment. However, the program could face competition from similar programs in Thailand and Indonesia. We upgrade the sector rating to OVERWEIGHT from Neutral as we think the sector had entered a new cycle. Our sector top picks are IOIPG, OSK, SimeProp, and Sunway.

Analyst(s):
Tan Kai Shuen, CFA
kstan@hlib.hongleong.com.my

$SIMEPROP / 5288 (SIME DARBY PROPERTY BERHAD)

$IOIPG / 5249 (IOI PROPERTIES GROUP BERHAD)