China is one of the eminent countries when it comes to investing and developing its reach. On similar grounds, the Chinese company named Country Garden on Monday unveiled that its 100-billion-dollar project is proceeding as predicted. In fact, it has sufficient assets to carry forth with the planned idea. This was the way of sidelining any concerns regarding its financial strengths amidst debt woes.
Interestingly, these statements have been released after the company missed 2 dollar coupon payments this month, adding $22.5 million, which flamed the uncertainty that the country’s project might get hampered due to the property debt crisis.
China’s Country Garden sounds confident regarding the project on Malaysian soil
Calling it safe and stable, the Chinese investors believed that their company’s projects in Malaysia were being carried out smoothly. As a matter of fact, the sales are stronger than ever. This indicated that the overall dynamics of the assignment are coming along as expected.
Additionally, it was elaborated that numerous debt management techniques have been adopted by the organization, and some of them are being considered for the same. This is to promptly reduce any pressure of periodic liquidity that might be building up. As a result, it is to ensure the company’s long-term future developments. Furthermore, support is provided from all fronts, including the banking union of the host country.
Probable impact on the Malaysian market
Country Garden has extremely limited access from the Banks of the Southeast Asian country. Acknowledging this and the loans giving out on time, the central bank of Malaysia revealed- “The current development with Country Garden Holdings Ltd in China is not expected to pose any material impact on the overall property market activity and prices in Malaysia,” per Reuters.
There is also an update of the Chinese Investor developing the largest creation called the Forest City Project. It will be undertaken across four renowned islands of Johor, a state in South Malaysia, sharing borders with the wealthy state of Singapore. Though, since its inauguration in 2016, the residence of 9000 people saw demand fall drastically due to China’s divided attention and the COVID-19 pandemic.
Concerns of the people of Malaysia regarding Country Garden
The Malaysians have brought forth genuine concern surrounding the living facility of the area along with the environmental problems caused from the large change of design to the land. The focus of the new program lies in housing about 700,000 people by 2035, covering schools, malls, living quarters and offices.
The statement came from the company’s side after the Prime Minister, Anwar Ibrahim, had called the project a “special financial zone” to gain investments and more business progress there. Besides the old incentives, the new factors cover a special income tax offered at 15% for skilled laborers and a varied range of entry visas, according to the Prime Minister.
RHB analyst Loong Kok Wen explained Singapore’s attention on the residential areas along with costs being extremely high. “This move should help to revitalize the Forest City township, which has received lots of negative publicity over the last few years,” the analyst said.
Focus remains on Malaysia’s positive outlook toward Country Garden investments. The Chinese developer even showed gratitude toward Malaysia’s government for the rewarded confidence in the project. The belief and constant efforts have led the shares to close down finally 9% on Monday this week.