Beyond Property Developers — Who Else Stands to Gain from Budget 2025?

The Budget 2025, presented in Parliament on 18 October 2024, demonstrates the government’s commitment to fiscal consolidation by reducing overall expenditure to tackle the national deficit.

While much of the spotlight has been on property development companies, it’s crucial to explore the broader spectrum of beneficiaries arising from the new measures, particularly in the context of tax reforms targeting individuals.

One of the key initiatives is a newly introduced tax relief on housing loan interest, specifically for first-time residential home buyers. In essence, individuals purchasing their first home are now eligible for tax relief on the interest incurred on housing loans, applicable to properties priced from RM500,000 to RM750,000.

This policy is designed to reduce the financial burden for basic salary earners, making homeownership more accessible. The initiative is expected to encourage the younger generation to buy homes rather than rent, ultimately boosting demand in the property market from a macroeconomic standpoint.

One of the companies well-positioned to benefit from this trend is Econframe Berhad. Specializing in the design and manufacture of metal frames, doors, and windows, Econframe has established strong relationships with leading property developers and construction firms, serving residential, commercial, and mixed-use projects.

Econframe’s financial performance also underscores its potential in this evolving landscape. Over the past five years, the company has achieved a compound annual growth rate (CAGR) of 14.55% in revenue, reflecting its consistent growth trajectory. Similarly, its EBITDA and profit after tax (PAT) have grown at CAGRs of 12.41% and 12.57%, respectively.

Despite minor setbacks in 2020 and 2021 due to the COVID-19 pandemic, Econframe’s management demonstrated prudence, maintaining profitability through challenging times. This resilience, coupled with a positive macro-outlook, positions Econframe as a promising player in the post-Budget 2025 environment.