In addition, the positive growth performance of the economy is reinforced by a resilient external position. Despite the challenging external environment, the current account surplus for 2023 was sustained at 1.2% of GDP, supported by a diversified export structure across market and product. In FY2024, the Construction sector work done value recorded a notable surge of 9.7%, amounting RM12.1 billion, over the corresponding period in the previous financial year. This was also supported by the increase value of work done for non-residential buildings and residential buildings. Despite a challenging global financial and economic environment, the property market stayed resilient in 2023. In 2023, total transactions volume and value increased by 2.5% and 9.9% respectively to 399,008 transactions worth RM196.8 billion, compared to 389,107 transactions worth RM179.1 billion in 2022). The residential subsector continued to contribute the largest share of transactions, recorded a marginal increase in both volume and value. The residential overhang situation improved as the numbers continued to reduce as compared to previous year. There were 25,816 overhang units worth RM17.68 billion recorded in Q4 2023, reduced by 7.0% and 4.0% in volume and value respectively against Q4 2022 (27,746 overhang units worth RM18.41 billion). The growth in 2023 property market is strongly supported by the implementation of various government initiatives and assistance and improving labour market conditions. Several initiatives which outlined under Budget 2023 by the government to a certain extent helped improve property market activities. REVIEW OF THE OPERATING ENVIRONMENT FY2024 has brought many surprises: the extent of monetary tightening, the risk appetite of investors. It was also a period of geopolitical upheaval, with the Ukraine-Russia war and additionally, with the Middle-East conflict adding concerns of further disruption to the supply chain and escalating prices of commodities. These factors impacted significantly on Malaysia’s economy, bearing down with increased inflation, unemployment and shrinking incomes, hence reducing the purchasing power of potential homeowners. In addition, the increase in cost of raw materials for construction and difficulty in securing financial loans did little to stem the erosion of buyer’s confidence. Remarkably, as the economy started to open up postpandemic, the continued recovery in economic activity and labour market conditions supported growth, resulting in Malaysia’s economy normalising to register a 3.7% growth in 2023. MANAGEMENT DISCUSSION & ANALYSIS Lumina, Eka Heights KEY MESSAGES MATRIX CONCEPTS HOLDINGS BERHAD 38
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