MANAGEMENT DISCUSSION & ANALYSIS OUTLOOK AND PROSPECTS Global and Domestic Outlook According to the International Monetary Fund (“IMF”), global economic growth is expected to remain positive, though declining to 2.8% in 2023 and improving to 3.0% in 2024. As central banks take measures to curb inflationary pressures through interest rate hikes, global headline inflation is set to fall from 8.7% in 2022 to 7.0% in 2023. However, underlying price pressures, tight labour markets in several major economies and intensified trade war may continue to pose headwinds to global economic growth. Increasingly, the spectre of banking sector vulnerabilities may have a domino effect, thought it appears the worst has been curtailed. Downside risks remain apparent with the probability of a hard landing having increased for 2024. Consistent with the global economic trends, Malaysia’s economy is expected to also moderate, but remain positive with economic expansion estimated at between 4.0%-5.0% in 2023. Growth will remain driven by domestic demand, a recovery in tourism and employment rates. Present fiscal and pump-priming measures implemented by the Malaysian government and Bank Negara Malaysia should ensure a continued conducive environment that encourages strong export performance, increased foreign and domestic investments and improved consumer confidence that would support retail expenditure and consumption. Recent announcements on revival of major infrastructure projects such as the high-speed rail (“HSR”), MRT3 and others will also have a strong pump priming effect on the local economy, with the multiplier effect cascading across local industries and supply chains. Property Industry Outlook The property sector is expected to remain positive in 2023, buoyed by strong demand for mid-ranged homes from the expanding middle-income, mass-market segment. The industry has benefitted from government recovery plans, industry initiatives and incentives along with recovery in consumer confidence. Property developers who have established a strong brand name and a proven track record for quality properties and compelling value propositions at appropriate price points are expected to continue to see market take-up of their products. Properties priced RM550,000 and below will continue to form the large bulk of properties coming into the market. However, beyond pricing, properties will need to be situated in strategic locations; locations that offer excellent accessibility, connectivity and amenities in matured suburban areas. These include properties that offer the right combination of space, facilities and modern designs and lifestyle concepts that appeal to the urban buyer. Outlook For Matrix In FY2024, Matrix plans to further refine its product launch mix to market demand. In Malaysia, the Group plans to launch RM1.73 billion of new properties into the market, with the bulk being mid-ranged homes. Most of these launches will centre around the Group’s flagship Sendayan Developments and BSI, with some launches of stand-alone, projects located in the Greater Klang Valley. The Chambers, Kuala Lumpur INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 54 KEY MESSAGES
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