Malaysia's Property Sector Still Trails Advanced Markets In Green Initiatives

MBSB Investment Bank Bhd (MBSB Research) maintained its NEUTRAL call on the property sector, with IOI Properties Group Bhd and Mah Sing Group Bhd as its top picks with Buy ratings and target prices of RM4.64 and RM1.25 respectively, as Malaysian property companies continue to show commitment towards improving environmental, social and governance (ESG) practices.

MBSB Research said ESG ratings among property companies under its coverage remained largely unchanged compared with a year ago, reflecting continued efforts in managing sustainability risks. Four companies, including Sunway Bhd, IOI Properties, Mah Sing and Eco World Development Group, maintained 4-star ESG ratings under the FTSE Russell ESG framework, while Matrix Concepts Holdings, S P Setia and UOA Development retained 3-star ratings.

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