Paramount still keen on foreign markets
SHAH ALAM: Property developer Paramount Corp Bhd remains committed to overseas property investment amid market uncertainty and Eco World International Bhd 's (EWI) plans to re-enter the Malaysian property scene.
In May 2024, Paramount became a major shareholder of EWI after acquiring a 21.54% stake in the international property developer for a cash consideration of RM170.61mil.
Loss-making EWI focuses on international property development, mainly in Britain and Australia, but had recently announced plans to venture into the local market.
Group chief executive officer Jeffrey Chew said EWI's decision to tap into the local market does not divert Paramount's objective of diversifying its earnings base and expanding property development activity overseas.
'I think our objective has always been to keep some assets outside of Malaysia. The fact that EWI has actually decided to launch in Malaysia does not mean that they are going to get rid of all the overseas projects.
'In a way, it still does meet our objective and original intonation of having assets outside of Malaysia,' he told the media during a briefing after Paramount's 55th AGM, yesterday.
Chew noted that if EWI were to launch projects locally, revenue recognition would likely be faster compared to markets such as Britain or Australia.
He said Paramount sees long-term value in maintaining its investment in EWI, maintaining a positive outlook over the next few years.
On Paramount's broader overseas investment strategy, Chew said that the group tries to 'not put all its eggs in one basket' and continues to explore new opportunities.
He acknowledged that earlier projects, including a venture in Bangkok, had underperformed due to post-pandemic market conditions.
As a result, Paramount is now focusing on lower-risk, structured international investments that offer fixed returns and defined exit mechanisms.
To date, Paramount has invested in six international property projects across Australia, Britain and the United States.
In line with its updated investment approach, the group also revised its international profit contribution target to 20%, down from the earlier goal of 30%.
He said the company was also working to improve internal performance metrics.
'We've grown our return on equity (ROE) from just over 2% a few years ago to 7.2% today, one of the highest in the domestic property sector. Our aim is to reach double-digit ROE in the next few years by improving operational efficiency, shortening development cycles and managing land acquisition more strategically,' he added.
Looking ahead, Paramount remains confident in its ability to achieve its sales target of RM1.5bil, supported by the robust demand in the property market, specifically for residential property.
Paramount posted a net profit of RM14.43mil or a basic earnings per share of 2.32 sen for the first quarter of this year (1Q25).
This was higher from the RM7.71mil or 1.24 sen in the same quarter of the preceding year.
Revenue also increased from RM172.61mil to RM217.84mil.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
39 minutes ago
- New Straits Times
PM Anwar's inaugural visit to France to strengthen bilateral ties
KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim has embarked on an inaugural official visit to France from July 3 to 4 at the invitation of President Emmanuel Macron. Malaysia's Ambassador to France Datuk Eldeen Husaini Mohd Hashim said the visit carries an official status and signifies France's strong commitment towards its diplomatic ties with Malaysia since Anwar assumed premiership in 2022. "This official visit status is also significant for the continued strengthening of our bilateral diplomatic ties," he said to the Malaysian media through an online conference from Paris on Wednesday. Eldeen Husaini said Anwar would be received by the French top leadership at the airport, followed by an inspection of a guard of honour and an engagement session with the Malaysian diaspora in France. Anwar is scheduled to hold a one-on-one meeting with Macron at the Élysée Palace, with key agenda items including trade, investment, renewable energy, semiconductors, defence, education, digital economy, and artificial intelligence (AI). "Malaysia expects this official visit will boost investor confidence in exploring new investment opportunities and strengthen bilateral economic cooperation, particularly in the nuclear and clean energy sectors," he told the Malaysian media in an online briefing from Paris on Wednesday. Meanwhile, Malaysia also expresses support for France's effort to host a conference to work towards a solution for the Palestine-Israel conflict and discuss regional issues such as the South China Sea and the stability of Southeast Asia in Malaysia's capacity as the 2025 Asean Chair. Eldeen Husaini said a lecture by the prime minister titled Southeast Asia and Europe: Recalibrating the Terms of Engagement will be held at Sorbonne University, a world-renowned institution in the intellectual and cultural spheres. "He will also attend a session with 250 members of the Malaysian diaspora, deliver a lecture, and attend Friday prayer with Muslim community leaders at the Grand Mosque of Paris, one of the oldest mosques in France," he said. "This visit aims to open a new chapter in bilateral relations, drive national economic growth, and enhance Malaysia's competitiveness in the global supply chain," he added. Anwar is accompanied on this visit by Foreign Minister Datuk Seri Mohamad Hasan, Transport Minister Anthony Loke, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, Defence Minister Datuk Seri Mohamed Khaled Nordin, and Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. Also joining the delegation is Deputy Minister of Energy Transition and Water Transformation Akmal Nasrullah Mohd Nasir. France remains one of Malaysia's top five trading partners within the European Union. In 2024, bilateral trade totalled RM15.95 billion (US$3.63 billion), with RM6.26 billion (US$1.49 billion) recorded between January and May this year. Following his visit to France, Anwar will head to Brazil to attend the BRICS Leaders Summit from July 5 to 7. Anwar is currently undertaking a visit to three countries - Italy, France, and Brazil - from July 1 to 7. - Bernama
New Straits Times
2 hours ago
- New Straits Times
It's an investment in Malaysia's future and fiscal resilience
Taking a comparison between the Sales and Service tax (SST) and the Goods and Services Tax (GST) is actually engaging in a misguided debate. The focus should be on where the expected additional revenue derived from the SST expansion (SST 2.0) will be directed and invested, and how the reform in the SST 2.0 model can improve the fiscal resilience of the economy. The state of the Malaysian economy and the global economy at large today is different from a decade ago when GST was rolled out. When GST was introduced, SST was abolished. And when GST was abolished in 2018, SST was reintroduced. Now, we have SST 2.0. In Madani economic terms, it is about achieving the twin objectives of "raising the ceiling" and "raising the floor", which essentially seeks to empower the people and to transform the economy into a high-income nation. Today, a whole range of public support — schools, universities, clinics, hospitals, roads, Internet access, bridges, security, legal system, etc — is more crucial than ever and this involves government spending and investments. Imagine how we faced the Covid-19 pandemic without government support, just to show one example. Currently, humanity is facing a slew of existential and once-in-a-lifetime changes. Climate change, technological revolution, digital economy and ageing society all require a fundamental shift in the structure of the economy and, hence, the need for the government to broaden their revenue base in a sustainable manner. Adding to this is the global economic uncertainty and ongoing geopolitical risks which, again, require the government to play a greater role than in the past to mitigate their downside impact to the economy. To stay competitive, the government needs to invest in many "moonshot projects" and research and development that will anchor and propel the economy to greater heights. When it comes to paying taxes, the real question is always about the value that the people get from paying those taxes. For instance, Denmark, Sweden and Finland have among the highest tax rates in the world. But they are also always ranked at the top globally in the happiness report. Finland now has the "happiest people" for eight consecutive years. Denmark ranked second while Sweden came in fourth. What are the reasons behind their happiness? One factor that cannot be denied is their robust welfare system, including the comprehensive, high-quality and reliable healthcare, education and public transport systems. In Sweden and Denmark, their strong social safety net and pension systems are among the best in the world. To put it simply, it is about "higher taxes, higher rewards". The same argument can be extended to the business community. The issue is not so much about additional costs due to higher taxes, but the value these companies can get for paying those taxes. If the logic is that lower taxes will attract more businesses and investments, then many companies would have flocked to Paraguay, where its corporate income tax is one of the lowest in the world at 10 per cent. Even with the higher taxes, Stockholm has been dubbed the "Unicorn Factory". From Spotify to Minecraft, Stockholm has the highest number of tech unicorns (startups valued at above US$1 billion) per capita in the world after Silicon Valley in the United States. Meanwhile, with the extra revenue from SST 2.0, Malaysians must feel their well-being and prosperity will improve in the future. It is expected that the tax-to-gross domestic product ratio can be increased from the present 12 per cent to a level that is at least at par with our peers or with other Asia Pacific countries.
New Straits Times
3 hours ago
- New Straits Times
Anwar meets Islamic leaders, media figures, and Malaysians in Rome
ROME: Prime Minister Datuk Seri Anwar Ibrahim held a series of informal engagements during his official visit to Italy, meeting with prominent media figures, corporate representatives and Islamic community leaders. "Among them was Imam Yahya Pallavicini, imam of one of Europe's largest mosques, who represented both the congregation and the Muslim association," Anwar said. He also met Italian Islamic Cultural Centre secretary-general, Abdullah Ridoni, an organisation officially recognised by the Italian government. Anwar said that a local research centre had translated and published his book The Asian Renaissance into Italian. "They presented me with a copy, for which I expressed my appreciation," he said. The prime minister also met members of the Malaysian diaspora in Rome. "Though their numbers are not large, mainly students and workers, we were able to meet and discuss the potential that exists in both Italy and Malaysia," he said, adding that deeper bilateral ties could open up new opportunities for investment and trade. Anwar is currently on a working visit to three countries, Italy, France and Brazil, beginning 1 July, as part of efforts to strengthen bilateral relations and promote Malaysia's economic interests on the global stage.
