KUALA LUMPUR: Sime Darby Property Bhd
is optimistic about achieving its sales target of RM4 billion this year despite rising construction cost and cautious consumer sentiment.
Group managing director and chief executive officer Datuk Seri Azmir Merican said the company will be vigilant for new property launches as well as rationalising the designs to retain healthy margins.
"I will be sitting down with the senior team and getting feedback (on the matter). Typically, we would be revising in the second quarter of the financial year. But as of today, we still hope to pursue the RM4 billion target (for this year),” he told a press conference after announcing the group’s first quarter financial result today.
Sime Darby Property posted a higher net profit of RM158.78 million in the first quarter ended March 31, 2026 (1Q FY2026), compared to RM118.41 million in the year-ago quarter.
In a Bursa Malaysia filing today, the property developer said the improvement in performance was mainly attributable to a fair value gain of RM65.1 million recognised on the completion of a built-to-lease data centre, stronger contributions from the investment and asset management segment, coupled with a lower share of losses from joint ventures.
On the challenges faced by construction industry this year, Azmir acknowledged that construction cost has increased due to rising diesel prices amid the ongoing geopolitical tensions and global supply chain disruptions.
Therefore, he said, the company will discuss with the contractors on the prices although they secured the contracts and awards from it at certain prices.
"For future projects, this is where we need to focus (on costing). But it is not just about the price; it is also about the supply chain.
"The supply chain must ensure that when we launch (a project), we have enough materials available to complete the job,” he said.
In order to ensure resilience and sustainable growth amid an increasingly uncertain global environment, Azmir said, the company will provide the right products at the right prices to remain sensible and design the upcoming properties using suitable materials to save some costs.
"We remain very prudent and watch our existing launches and consumer behaviour, because we need to be sure the products that we are going to launch will be successful,” he added. - Bernama
