KUALA LUMPUR: The government may need to reconsider the continuation of support for the real estate investment trust (REIT) sector as the industry has reached a level of maturity and strong commercial viability, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said Malaysia has capitalised on the REIT business over the past 21 years, with the REIT sector now positioning itself as a viable alternative for companies to strengthen their balance sheet.
He noted that the REIT market capitalisation reached about RM57 billion last year, compared with less than RM1 billion when it was first introduced, and that the markets have accepted that REIT is an important enhancement to the capital market. "If the REIT business is already mature and viable, then maybe the government may need to reconsider whether it needs to give it any more (support). Because it's already big,” Amir Hamzah told reporters.
...