KUALA LUMPUR (Oct 27): IGB Corporation Bhd's founder and group managing director Datuk Seri Robert Tan Chung Meng thinks Budget 2017 is attractive for civil servants and will help to spur consumption.

"The budget that was announced is quite attractive for the civil servants," Tan told a press conference on the proposed financing for the group's joint venture, Southkey Megamall Sdn Bhd. He was answering a question on how the slowdown of the property and retail markets could affect the Southkey Megamall.

"It is still two years away from now. By then, we would have recovered. Not that the growth at the moment is bad. According to the PM (prime minister), Malaysia is still growing at about 3% to 5%, which is still a commendable figure," Tan said.

He added unemployment is not an issue in Malaysia, especially since a big chunk of the working population comprises civil servants. Job security is not an issue for them and they are more likely to spend.

On the medium term notes (MTN) programme of RM1 billion that will be raised, Tan said: "The MTN programme is the latest step in our efforts to realise Mid Valley Megamall, Southkey, as one of Johor's largest integrated retail and commercial developments.

"Additionally, it allows us to diversify our funding sources further and provides financial flexibility for us to pursue opportunities that will continue to support the growth of IGB's business."

Tan declined to comment on the cost of funding for the MTN programme but said it is a win-win situation. Once completed, Mid Valley Megamall, Southkey, with its estimated 140,000 sq metres of net lettable area, 400 retailers including anchor tenants and 6,000 car park bays, will be one of the largest malls in Johor.

At 4.40pm, IGB Corp's share price was unchanged at RM2.51, with only 35,400 shares traded At this level, IGB Corp has a market capitalisation of RM3.35 billion and is trading at a trailing P/E of 16.7 times.