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Industry Perspective: Boustead Properties Sees No Material Impact from Diesel Subsidy Rationalisation

KUALA LUMPUR, 7 June 2024 – Boustead Properties Berhad (“Boustead Properties” or “The Company”) wishes to provide an industrial opinion on the Government’s recent strategic initiative to reform diesel subsidies, recognising it as a vital step towards fostering inclusive and sustainable economic growth over the long-term.

As one of the leading industry players, the Company will proactively contribute to national initiatives while maintaining an optimistic outlook on its impact. Diesel fuel at commercial prices has been a regular feature of all the Company’s projects and development. Thus, the elimination of the diesel fuel subsidy will not have any material impact on the Company’s operational effectiveness, operational delivery, or development cost. Boustead Properties remains steadfast in upholding its standards of excellence, continuing to deliver exceptional value and quality to all its projects.

The property industry is likely to benefit from the government’s plan to impose targeted fuel subsidies, which are projected to save RM4 billion annually. The plan also ensures subsidies reach crucial sectors, including public transport and logistics, stabilising transportation costs. It is projected that the fiscal savings would improve public amenities and infrastructure development, which will boost the value and appeal of residential and commercial developments. Additionally, the move promotes sustainable development by encouraging the adoption of renewable energy sources and reducing reliance on fossil fuels, allowing the property sector to contribute to national environmental goals.

Boustead Properties Chief Executive Officer Khairul Azizi Ismail stated, “We firmly support the Government’s efforts to rationalise diesel subsidies, as it aligns with the MADANI Economy framework. This initiative ensures that the benefits reach those most in need while safeguarding national interests.”

 

About Boustead Properties Berhad

Boustead Properties is a leading Malaysian property developer dedicated to creating sustainable and innovative living and working spaces. With a commitment to excellence, Boustead Properties continues to contribute to the nation’s urban development and economic growth. The Company’s core business activities are property development, property management, retail and investment. Boustead Properties is the master developer of Mutiara Damansara township and has a strong presence in Skudai, Johor through its mixed residential development, Mutiara Rini. The Company is currently developing a 1,200 acres flagship development, Mutiara Hills in Semenyih. Boustead Properties developed and owned the Curve, Malaysia’s first pedestrianised shopping mall located in Mutiara Damansara and also owns and manages commercial assets strategically located in the Klang Valley and Penang.

For more information, please contact comms@bprop.com.my

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