This article first appeared in The Edge Financial Daily on November 23, 2017

PETALING JAYA: Ministers’ statements regarding the freeze on approvals for shopping complexes, offices, serviced apartments and luxury condominiums priced over RM1 million a unit have been “unclear”, according to property developer Malton Bhd.

“We are still waiting for clearer guidelines from the authorities,” its spokesman said after the group’s annual general meeting here yesterday. Malton has yet to receive an official directive on the new ruling.

On Monday, it was reported the government had taken a U-turn on the matter when Works Minister Datuk Seri Fadillah Yusof was quoted as saying the ban did not involve all luxury projects and that green light would still be given on a case-by-case basis. But Second Finance Minister Datuk Seri Johari Abdul Ghani told The Edge Financial Daily on the same day the cabinet’s decision was “a blanket and [there’s] no case-by-case basis”.

Yesterday, Johari stressed there would be no U-turn on the indefinite freeze, which came into effect on Nov 1.

Nonetheless, Malton said it is unlikely to be affected by the new ruling as it has already received the development orders, with building plans approved, for the projects it has planned for its financial year 2018 (FY18).

Additionally, its upcoming projects comprise properties that cost less than RM1 million per unit, the spokesman said.

In the near term, Malton expects to focus on the development of more high-rise residential units while it keeps an eye out for opportunities to expand its current 360-acre (145.69ha) land bank.

The group expects to launch two additional projects in FY18, namely the Duta Park serviced apartments, in Kuala Lumpur, which are priced from RM450,000, and semi-detached shop office in Rapid City Centre, in Johor. Together, the developments have a gross development value (GDV) of RM950 million.

Meanwhile, over 80% of The Park 2's Tower 2 in Bukit Jalil City has been sold since its launch in August this year, the group said. The development has a GDV of RM672 million.

Though the property market has been beset by weak sentiment, Malton has been “fortunate” to continue seeing good responses to its products, its spokeman said. However, it has also been pacing its launches to ensure there is a minimum take-up rate of 80% per launch.

For its first quarter ended Sept 30, 2017, Malton’s net profit quadrupled to RM25.93 million year-on-year (y-o-y) from RM6.26 million, due to a one-off RM23.8 million gain on a revoked joint development agreement.

However, the group’s quarterly revenue slipped 4% y-o-y to RM125.12 million from RM130.04 million on lower revenue from its property division.

On the subject of its planned development in Rimba Kiara Park, Taman Tun Dr Ismail, which has been strongly objected to by local residents, Malton’s spokesman said the group will adhere to the court’s ruling on the matter.