AL-SALAM REIT ANNUAL REPORT 2017

AL-SALĀM REIT ANNUAL REPORT 2017 51 ( Extracted from CBRE | WTW Research : Asia Market outlook 2018, Malaysia). 5. OUTLOOK The retail sub-sector is expected to be more competitive as the three newly opened malls have increased the supply of retail space by about 12.6%. In anticipation of the income tax reduction as announced in the Budget 2018, consumers’ purchasing power should improve and in return will help to support the retail market in the near future. Notable developments and catalytic projects in other sectors such as oil and gas (O&G), industrial and tourism will help to support the growth of residential, commercial and retail sub- sectors in Iskandar Malaysia and Johor, in general. The Pengerang Integrated Petroleum Complex (PIPC), which will contribute about RM8.3 billion to the nation’s gross income by 2020, is expected to be fully completed in 1Q2019. Currently, the project is on track and about 77% completed as of end September. The project has generated a lot of job and business opportunities for the local community and this has indirectly helped the growth of the property market in the surrounding areas. (Extracted from Research Report Knight Frank : Real Estate Highlights 2nd Half 2017)