management discussion and analysis OPERATING ENVIRONMENT REVIEW ECONOMIC RESILIENCE AMID GLOBAL CHALLENGES The year 2024 was marked by significant geopoliঞcal turmoil, with ongoing conflicts in Ukraine and the Middle East disrupঞng global supply chains and driving up commodity prices. Surging energy and food costs intensified inflaঞonary pressures worldwide, leading to higher interest rates and subdued economic growth amid persistent uncertainty. These global headwinds impacted Malaysia’s economy, pushing inflaঞon higher, increasing unemployment, and squeezing household incomes - factors that weakened homebuyers’ purchasing power. Additionally, rising construction costs and stricter lending condiঞons further dampened buyer senঞment, compounding challenges in the housing market. Despite these hurdles, Malaysia’s economy grew 5.1% in 2024, supported by a resilient external sector that saw the current account surplus widen to 1.7% of Gross Domesঞc Product (“GDP”). The property and construction sectors sustained strong growth in 2024, defying broader economic pressures. The Malaysian property market saw a 5.4% increase in transacঞon volume (420,545 transacঞons) and an 18.0% surge in total transacted value (RM232.3 billion), up from RM196.8 billion in 2023. The residenঞal segment remained the dominant driver, followed closely by industrial properঞes. Reflecting rising property values, the Malaysian House Price Index grew by 3.3% to 225.6 points, with the average property price reaching RM486,678 per unit. These trends underscore the market’s durability and sustained demand despite economic uncertainঞes. Bank Negara Malaysia’s (“BNM”) decision to maintain the OPR at 3.0% since May 2023 provided stability, fostering a favourable environment for property transacঞons. This steady interest rate policy helped sustain buyer confidence, acঞng as an inflaঞon hedge while supporঞng economic acঞvity. Further momentum came from Malaysia’s Naঞonal Budget 2024, which introduced key measures such as stamp duty exempঞons to ease transacঞon costs as well as funding for affordable housing iniঞaঞves and support for home renovaঞons and new developments. Addiঞonally, the Malaysia My Second Home (“MM2H”) condiঞons was eased to aract foreign buyers whilst the RM10 billion Housing Credit Guarantee Scheme served to improved financing access for first-ঞme buyers and owner-occupiers. Such iniঞaঞves played a crucial role in sঞmulaঞng market acঞvity, reinforcing the property sector’s upward trajectory despite external pressures. While 2024 presented significant global economic challenges, Malaysia’s economy exhibited notable resilience, supported by strong external trade and domesঞc policy measures. The property market, in parঞcular, demonstrated robust growth, buoyed by stable financing condiঞons and government incenঞves. Moving forward, sustained policy support and economic diversificaঞon will be key to maintaining this posiঞve momentum. OPERATIONAL REVIEW OF MATRIX During the financial year under review, Matrix maintained this disciplined execuঞon of its business strategy while navigaঞng rising operaঞonal and financing costs. The Group adopted a dual focus: aggressively driving sales through strategic property launches to strengthen revenue streams, while simultaneously pursuing the ঞmely delivery of ongoing projects without compromising on construcঞon quality. The cumulaঞon of these efforts have resulted in Matrix recording RM1.4 billion worth of new property sales, one of the highest in the Group’s history, surpassing its target for FY2025. A key driver of success has been Matrix’s township development model, which integrates building technology, innovaঞve processes, and opঞmised resource uঞlisaঞon. The Group’s unwavering commitment to ঞmely project delivery, quality cra[smanship, and strict governance remains fundamental to its operaঞons. “Matrix maintained its resilient new property sales to meet its target for FY2025 with RM1.4 billion worth of new property sales, one of the highest in the Group’s history.” (Source: Property Market Report 2024) 34 MATRIX CONCEPTS HOLDINGS BERHAD INTEGRATED ANNUAL REPORT 2025 03 KEY MESSAGES
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