MKH confident of meeting sales target for FY16

MKH Bhd group managing director Tan Sri Eddy Chen

KUALA LUMPUR: MKH Bhd is confident of meeting its sales target for the financial year ending Sept 30, 2016 (FY16), driven by the uptrend in crude palm oil prices.

For the nine months ended June 30, 2016, MKHs revenue stood at RM870.691mil.

Group managing director, Tan Sri Eddy Chen, said the group was also re-strategising to focus on the affordable property development projects.

“For the next six to nine months, we are launching more than RM1 billion worth of affordable houses,” he said during a press conference after icapital.biz Bhd investor day 2016 here today.

He said the property market was dampened by the difficulty among house buyers to secure 100% financing and affordability issues especially as wage growth had been stagnant among the middle and lower income bracket.

Samantha Tai, managing director of a corporate consultant firm, Boardroom Corporate Services Sdn Bhd, said the main reason that wage growth had not improved was the lack of skilled and talented workforce in the country.

“To pay premium salaries, you need talented staff. There is also poor communication skills among those looking for employment,” she said.

She envisaged that businesses would remain challenging in the next one to two years due to the increasing cost of doing business.

Meanwhile, Tan Teng Boo, founder and managing director of Capital Dynamics, an investment advisory firm, said the Malaysian economy needed a structural change to provide a conducive environment in ensuring a sustainable and resilient economic development.

“As the global economy is entering a prolonged period of low growth, it is crucial to support domestic demand,” he said. - Bernama