Property prices will fall by 5-10 per cent from the first quarter of next year as a slower economy cools demand, a property consultant said.
The slump in prices will be for properties across the board, Association of Valuers & Property Consultants in Private Practice Malaysia (PEPS) president James Wong Kwong Onn said.
He said properties below the RM300,000 radar and luxury condominiums tagged at above RM750,000 are already hit from a slower economy.
Wong believes there will be a correction in the housing market next year.
"There will be fewer launches due to poor demand. Prices will fall, but gradually, due to lack of confidence in the market," Wong said after a media briefing on the 2nd Malaysian Property Summit 2009 in Kuala Lumpur yesterday.
But Wong said a housing bubble is unlikely although the market will be depressed by a slew of bearish factors like poor economic data and worries over increasing credit market losses in the US.
He said Malaysia's real estate is resilient enough to withstand the onslaught of the economic turmoil.
His confidence is boosted by the RM7 billion economic stimulus package announced last month.
Wong expects Malaysia's real estate to also fare better than Singapore, Thailand and Hong Kong as the latter three are more exposed to the US-led subprime crises.
"Property prices in these countries have also shot up by 100 per cent or more whereas the upward price in Malaysia was gradual. There is room to grow so we will definitely fare better," he added.
Meanwhile, Sime Darby Property Bhd managing director Datuk Tunku Putra Badlishah said the company has new products lined up for next year but will remain cautious when planning the launches.
"We are fortunate as most of our landbank is in prime areas and a majority of our market is owner-occupied. Despite the market shrinking, we believe it has eased a little," he said.
In the past one month, Sime Darby has been able to sell 241 properties worth RM141 million located within its 10 on-going townships.
Sales were boosted by its "Guaranteed Buy Back" scheme, instilling confidence in buyers.
The 2nd property summit, organised by PEPS, will be held on January 20 2009 at the Sime Darby Convention Centre, Kuala Lumpur. More than 200 participants from various sectors are expected to attend.
Source: Busines Times Online @ Money3.com.my
Date: 17/12/2008
Friday, December 19, 2008
Thursday, December 18, 2008
Strategic package to drive economy: Malaysia
The government may implement a so-called "strategic package" to drive the economy and woo foreign investors, said Minister in the Prime Minister's Department, Senator Tan Sri Amirsham A. Aziz.
"It's still very much in a discussion stage. We are talking to various ministries on the implementation... As soon as we clear that, we'll be making some announcements," said Amirsham, who is also the head of the Economic Planning Unit (EPU).
The package, unlike the RM7 billion stimulus which focuses on boosting the economy over the short term, will address issues to help grow the country over a longer period.
The measures include new policies to make the country's economy more competitive as well as improving the investment process for foreign investors.
"It's not so much of a stimulus package ... It's more like a strategic package.
Some of it involves making the various sectors more liberal in attracting foreign investment, and we're looking at improvements of the delivery system.
"I don't want to announce which sectors. But typically, we're looking at services as key to driving the future of the economy," Amirsham told reporters on the sidelines of an EPU briefing in Putrajaya yesterday.
Meanwhile, the EPU said it will closely look into whether the country needs another "stimulus package" next year.
"Right now, we think that the world economy is evolving quite dramatically. We'll see from there whether we need or do not need another stimulus package.
"We think that the RM7 billion that we've talked about earlier should be able to take us through for a while."
The government announced last month that it would pump RM7 billion into the economy next year so that the country would not sink into a recession.
The country is expected to post 3.5 per cent growth next year.
Source: Business Times Online @ Money3.com.my
Date: 18/12/2008
"It's still very much in a discussion stage. We are talking to various ministries on the implementation... As soon as we clear that, we'll be making some announcements," said Amirsham, who is also the head of the Economic Planning Unit (EPU).
The package, unlike the RM7 billion stimulus which focuses on boosting the economy over the short term, will address issues to help grow the country over a longer period.
The measures include new policies to make the country's economy more competitive as well as improving the investment process for foreign investors.
"It's not so much of a stimulus package ... It's more like a strategic package.
Some of it involves making the various sectors more liberal in attracting foreign investment, and we're looking at improvements of the delivery system.
"I don't want to announce which sectors. But typically, we're looking at services as key to driving the future of the economy," Amirsham told reporters on the sidelines of an EPU briefing in Putrajaya yesterday.
Meanwhile, the EPU said it will closely look into whether the country needs another "stimulus package" next year.
"Right now, we think that the world economy is evolving quite dramatically. We'll see from there whether we need or do not need another stimulus package.
"We think that the RM7 billion that we've talked about earlier should be able to take us through for a while."
The government announced last month that it would pump RM7 billion into the economy next year so that the country would not sink into a recession.
The country is expected to post 3.5 per cent growth next year.
Source: Business Times Online @ Money3.com.my
Date: 18/12/2008
Monday, December 15, 2008
Waiting game for property buyers
It will continue to be challenging in 2009 for the secondary residential property market as buyers continue to adopt a wait-and-see stance on property purchases due to the global economic slowdown, property experts said.
The degree of softening in property sales would depend on the severity of the economic downturn next year, they said.
Regroup Associates Sdn Bhd executive director Paul Khong acknowledged that the secondary residential property market has been quite slow as potential buyers have been holding off decisions on house purchases.
“This has significantly impacted the property market especially in the current quarter,” he told StarBiz.
“The quiet period is expected to continue through to the first quarter of 2009 after all the holidays are over.”
S.K. Brothers Realty (M) Sdn Bhd general manager Chan Ai Cheng said buyer sentiment had taken a beating due to the current economic uncertainties.
“It’s a waiting game for buyers. There are even ‘aborted’ cases where buyers have placed an earnest deposit to purchase a property and subsequently pulled out from the transaction, in the hope that prices will come down further or in search of fire-sales while others are uncertain of their job stability and postponing the purchase commitment,” she said.
Nevertheless, Hartamas Real Estate Sdn Bhd managing director Eric Lim is anticipating stable to moderate growth due to bargain hunting in certain segments of the secondary property market, especially landed residential property.
“(However) the market for properties that are purchased for investment and speculation will be slower,” he acknowledged.
The agency experienced a 20% to 30% drop in sales in the second half of the year versus the corresponding period of 2007.
“This is quite substantial for us. Sentiment is still not good,” Lim noted.
CH Williams Talhar & Wong Sdn Bhd managing director Goh Tian Sui concurred.
“The last two to three months have been quite bad – enquiries and sales activities have dropped. Owners are more open to negotiations in pricing,” he said.
The prices of certain secondary residential properties could also face more pressure next year due to a lack of demand and an increase in supply of completed projects.
Citing an example, Regroup’s Khong said the situation for high-end condominiums in the KLCC and Mont Kiara areas were getting critical and there would be more pressure on rental and capital values as many of the projects in the vicinity would be completed within the next one or two years.
“Supply will be mounting on a monthly basis as demand continues to be low and this will eventually translate into lower capital values and rental.
“An easy 15% to 20% shed in values are envisaged for this sector generally,” Khong said.
The asking prices for middle-class residential properties in general, for example, terrace houses in good locations such as Sri Hartamas, Bandar Utama and even Taman Tun Dr Ismail, had already been adjusted 5% to 10% lower to reflect current market conditions, Khong said.
Khong & Jaafar Sdn Bhd managing director Elvin Fernandez noted that prices of high density condominiums with a low occupancy rate in not-so-choice locations were about 10% lower now compared with a year ago.
“Although prices have softened, it is still difficult to sell such properties,” he said.
Source: The Star Online @ Money3.com.my
Date: 15/12/2008
The degree of softening in property sales would depend on the severity of the economic downturn next year, they said.
Regroup Associates Sdn Bhd executive director Paul Khong acknowledged that the secondary residential property market has been quite slow as potential buyers have been holding off decisions on house purchases.
“This has significantly impacted the property market especially in the current quarter,” he told StarBiz.
“The quiet period is expected to continue through to the first quarter of 2009 after all the holidays are over.”
S.K. Brothers Realty (M) Sdn Bhd general manager Chan Ai Cheng said buyer sentiment had taken a beating due to the current economic uncertainties.
“It’s a waiting game for buyers. There are even ‘aborted’ cases where buyers have placed an earnest deposit to purchase a property and subsequently pulled out from the transaction, in the hope that prices will come down further or in search of fire-sales while others are uncertain of their job stability and postponing the purchase commitment,” she said.
Nevertheless, Hartamas Real Estate Sdn Bhd managing director Eric Lim is anticipating stable to moderate growth due to bargain hunting in certain segments of the secondary property market, especially landed residential property.
“(However) the market for properties that are purchased for investment and speculation will be slower,” he acknowledged.
The agency experienced a 20% to 30% drop in sales in the second half of the year versus the corresponding period of 2007.
“This is quite substantial for us. Sentiment is still not good,” Lim noted.
CH Williams Talhar & Wong Sdn Bhd managing director Goh Tian Sui concurred.
“The last two to three months have been quite bad – enquiries and sales activities have dropped. Owners are more open to negotiations in pricing,” he said.
The prices of certain secondary residential properties could also face more pressure next year due to a lack of demand and an increase in supply of completed projects.
Citing an example, Regroup’s Khong said the situation for high-end condominiums in the KLCC and Mont Kiara areas were getting critical and there would be more pressure on rental and capital values as many of the projects in the vicinity would be completed within the next one or two years.
“Supply will be mounting on a monthly basis as demand continues to be low and this will eventually translate into lower capital values and rental.
“An easy 15% to 20% shed in values are envisaged for this sector generally,” Khong said.
The asking prices for middle-class residential properties in general, for example, terrace houses in good locations such as Sri Hartamas, Bandar Utama and even Taman Tun Dr Ismail, had already been adjusted 5% to 10% lower to reflect current market conditions, Khong said.
Khong & Jaafar Sdn Bhd managing director Elvin Fernandez noted that prices of high density condominiums with a low occupancy rate in not-so-choice locations were about 10% lower now compared with a year ago.
“Although prices have softened, it is still difficult to sell such properties,” he said.
Source: The Star Online @ Money3.com.my
Date: 15/12/2008
Friday, December 12, 2008
Two differing views on how to solve global financial crisis
Former prime minister Tun Dr Mahathir Mohamad and the 2003 Nobel Laureate in Economics, Professor Dr Robert F. Engle, have espoused different methods to solve the current global financial crisis.
Dr Mahathir said he was for a return to the gold standard to stabilise financial markets while Engle proposed a “counter cyclical regulatory system” at the Bridges – Dialogues Towards a Culture of Peace conference yesterday.
“In the past, the money we used was based on something that had value, now we are using pieces of paper where the value is dependent on what people say it is,” Dr Mahathir said, referring to the Bretton Woods system, set up in 1944, when fixed exchange rates were tied to gold reserves and the US dollar.
The Bretton Woods system broke down in the 1970s as industrialised countries moved to floating currencies and the influence of capital markets grew.
“Today, they say the ringgit is worth so much. Tomorrow they say it is lower some more,” Malaysia’s fourth prime minister said, referring to the 1997 Asian financial crisis.
Engle said the current crisis was not a result of foreign exchange volatility but due to the collapse of the US subprime mortgage market and the subsequent credit crunch that brought down US banking giants.
“I think we should look at a policy to tighten regulation when banks are doing well and to give more flexibility when the banking system is going through problems,” he said, referring to his “counter cyclical regulatory” approach.
In the run-up to the current crisis, Western banks had been given more flexibility during the boom period to create debt instruments as they saw fit, Engle noted.
Dr Mahathir agreed that governments needed to regulate the markets or businesses would “do whatever they think will bring them profit and not worry about the welfare of the people”.
“It is the government that has been entrusted by the people to look after their welfare, and not businesses,” he said, but acknowledged that “the government must be business friendly”.
He also said the possibility that Islamic banking could solve some of the problems of the current global crisis should not be dismissed.
Source: The Star Online @ Money3.com.my
Date: 12/12/2008
Dr Mahathir said he was for a return to the gold standard to stabilise financial markets while Engle proposed a “counter cyclical regulatory system” at the Bridges – Dialogues Towards a Culture of Peace conference yesterday.
“In the past, the money we used was based on something that had value, now we are using pieces of paper where the value is dependent on what people say it is,” Dr Mahathir said, referring to the Bretton Woods system, set up in 1944, when fixed exchange rates were tied to gold reserves and the US dollar.
The Bretton Woods system broke down in the 1970s as industrialised countries moved to floating currencies and the influence of capital markets grew.
“Today, they say the ringgit is worth so much. Tomorrow they say it is lower some more,” Malaysia’s fourth prime minister said, referring to the 1997 Asian financial crisis.
Engle said the current crisis was not a result of foreign exchange volatility but due to the collapse of the US subprime mortgage market and the subsequent credit crunch that brought down US banking giants.
“I think we should look at a policy to tighten regulation when banks are doing well and to give more flexibility when the banking system is going through problems,” he said, referring to his “counter cyclical regulatory” approach.
In the run-up to the current crisis, Western banks had been given more flexibility during the boom period to create debt instruments as they saw fit, Engle noted.
Dr Mahathir agreed that governments needed to regulate the markets or businesses would “do whatever they think will bring them profit and not worry about the welfare of the people”.
“It is the government that has been entrusted by the people to look after their welfare, and not businesses,” he said, but acknowledged that “the government must be business friendly”.
He also said the possibility that Islamic banking could solve some of the problems of the current global crisis should not be dismissed.
Source: The Star Online @ Money3.com.my
Date: 12/12/2008
Wednesday, December 10, 2008
Lower rates is a wrong prescription
Across the Western world, a self-imposed financial meltdown is now seriously damaging tens of millions of ordinary firms and households – turning their lives upside down.
It’s not good enough to “avoid the blame game” and “look to the future.” For, be in no doubt, this crisis has its roots in fraud – from the mortgage brokers who sold loans they knew would fail to the investment “professionals” who rolled-up the debts into securities and the ratings agencies that stamped them triple-A.
We need tough questions and full investigations. Those most guilty must go to jail. Unless that happens, and is seen to happen, expect a repeat crisis in a few years’ time.
Historians won’t be kind to the central bankers who, having lowered rates in the aftermath of 9/11 and the dotcom crash, kept them low far too long – so pumping up the credit bubble.
I fear historical ignominy, too, for their counterparts who are now also slashing rates willy-nilly. That includes the Bank of England, which cut rates by a whole percentage point on Thursday, to 2%. That’s the lowest level since 1951, when King George VI opened the Festival of Britain.
The central bank’s latest move also caused (albeit murmured) celebrations. Following its dramatic 1.5 percentage point cut in November, many say the Monetary Policy Committee (MPC) “did the right thing”. There are now calls for a “zero interest rate policy” – and the sooner the better.
The vocal retail lobby wants rates nailed to the floor as they’re desperate for something (anything) that might ensure a “good Christmas”. Powerful bankers hope ever-lower rates might generate an asset price recovery – so they can avoid “fessing-up” their remaining, still undisclosed, “subprime” liabilities.
But beyond those vested interests – and the commentators they seem to control – am I alone in seeing huge dangers in our “chain-saw” monetary policy? Are we not way past the point at which lowering rates does far more harm than good?
Bank lending has stalled. The latest figures show total secured and unsecured lending grew at an annual rate of just 4.7% last month. But that’s the same rate of expansion as in October 1993. And back then we didn’t opt for a no-holds-barred Japanese-style monetary policy.
The current lending slowdown hurts, of course, because the Western world – and the UK in particular – is emerging from a decade-long debt-fuelled consumer frenzy. The end of that was always going to hurt but that doesn’t mean we should repeat past mistakes and impose ultra-low rates in a bid to avoid the inevitable de-leveraging.
The problem, anyway, isn’t the cost of credit but the availability. Credit won’t become more available until the banks trust each other and the inter-bank market reboots. That won’t happen until the banks are forced to reveal their potential subprime losses – as this column has often argued. Lower rates just delay that “day of reckoning” – by giving the banks more hope they can get away without “full disclosure”.
Remember, too, that yanking down rates causes huge collateral damage. The MPC says rates of 2% are necessary “in order to meet (it’s) inflation target in the medium term”. Everyone knows that’s rubbish. The Bank of England, against its better judgement, has been forced by its political masters to throw inflationary concerns to the wind.
But inflation, as measured by the consumer price index, remains at 4.5% – more than twice the central bank’s target. While oil prices have fallen, the futures market says cheap crude won’t last long. Monetary and fiscal policies are now also wildly loose, which will stoke up future inflation.
Our leaders have said calculated inflation doesn’t matter. Like the rulers of a banana republic, they don’t care about monetary excesses because some other sucker will be in power when their ghastly effects are felt. Ministers can smash-up the monetary regime but they can’t ignore the currency constraints. The dollar’s reserve status gives the US scope (for now) to print money and cut rates with abandon. But the UK cannot afford such luxuries.
A month ago, you could sell a pound for US$1.80. Now, you’d get US$1.46. A euro was recently worth only 64p. Now it’s equivalent to 86p – the pound, on a trade-weighted basis, at a 13-year low. By weakening sterling, and making imports more expensive, lower rates cause inflation even when the economy is slowing. And – lock me in the Tower for saying so – surely our monetary policy, combined with gargantuan government borrowing, could soon cause a run on the pound.
Even if we avoid such a disaster, a weaker currency makes it harder for the Government to sell its debt. The UK needs to sell £150bil of gilts in each of the next three years – more than triple the recent annual average.
Then there’s the impact of ultra-low rates on savers – the great unsung losers when the MPC hits the panic button. Weighed down by debts and insolvencies, the UK desperately needs to save more – so providing the deposits, and stability, that will get credit moving. Half our workforce – 13 million people – have very little or no savings at all.
Yet, here we are, trying to repair a debt-crisis with more debt, a lack of saving by discouraging saving further. Through political weakness, and regulatory neglect, the West brought this crisis on itself – and the rest of the world. If that wasn’t bad enough, we’re now making the same crisis even worse.
Source: The Star Online @ Money3.com.my
Date: 10/12/2008
It’s not good enough to “avoid the blame game” and “look to the future.” For, be in no doubt, this crisis has its roots in fraud – from the mortgage brokers who sold loans they knew would fail to the investment “professionals” who rolled-up the debts into securities and the ratings agencies that stamped them triple-A.
We need tough questions and full investigations. Those most guilty must go to jail. Unless that happens, and is seen to happen, expect a repeat crisis in a few years’ time.
Historians won’t be kind to the central bankers who, having lowered rates in the aftermath of 9/11 and the dotcom crash, kept them low far too long – so pumping up the credit bubble.
I fear historical ignominy, too, for their counterparts who are now also slashing rates willy-nilly. That includes the Bank of England, which cut rates by a whole percentage point on Thursday, to 2%. That’s the lowest level since 1951, when King George VI opened the Festival of Britain.
The central bank’s latest move also caused (albeit murmured) celebrations. Following its dramatic 1.5 percentage point cut in November, many say the Monetary Policy Committee (MPC) “did the right thing”. There are now calls for a “zero interest rate policy” – and the sooner the better.
The vocal retail lobby wants rates nailed to the floor as they’re desperate for something (anything) that might ensure a “good Christmas”. Powerful bankers hope ever-lower rates might generate an asset price recovery – so they can avoid “fessing-up” their remaining, still undisclosed, “subprime” liabilities.
But beyond those vested interests – and the commentators they seem to control – am I alone in seeing huge dangers in our “chain-saw” monetary policy? Are we not way past the point at which lowering rates does far more harm than good?
Bank lending has stalled. The latest figures show total secured and unsecured lending grew at an annual rate of just 4.7% last month. But that’s the same rate of expansion as in October 1993. And back then we didn’t opt for a no-holds-barred Japanese-style monetary policy.
The current lending slowdown hurts, of course, because the Western world – and the UK in particular – is emerging from a decade-long debt-fuelled consumer frenzy. The end of that was always going to hurt but that doesn’t mean we should repeat past mistakes and impose ultra-low rates in a bid to avoid the inevitable de-leveraging.
The problem, anyway, isn’t the cost of credit but the availability. Credit won’t become more available until the banks trust each other and the inter-bank market reboots. That won’t happen until the banks are forced to reveal their potential subprime losses – as this column has often argued. Lower rates just delay that “day of reckoning” – by giving the banks more hope they can get away without “full disclosure”.
Remember, too, that yanking down rates causes huge collateral damage. The MPC says rates of 2% are necessary “in order to meet (it’s) inflation target in the medium term”. Everyone knows that’s rubbish. The Bank of England, against its better judgement, has been forced by its political masters to throw inflationary concerns to the wind.
But inflation, as measured by the consumer price index, remains at 4.5% – more than twice the central bank’s target. While oil prices have fallen, the futures market says cheap crude won’t last long. Monetary and fiscal policies are now also wildly loose, which will stoke up future inflation.
Our leaders have said calculated inflation doesn’t matter. Like the rulers of a banana republic, they don’t care about monetary excesses because some other sucker will be in power when their ghastly effects are felt. Ministers can smash-up the monetary regime but they can’t ignore the currency constraints. The dollar’s reserve status gives the US scope (for now) to print money and cut rates with abandon. But the UK cannot afford such luxuries.
A month ago, you could sell a pound for US$1.80. Now, you’d get US$1.46. A euro was recently worth only 64p. Now it’s equivalent to 86p – the pound, on a trade-weighted basis, at a 13-year low. By weakening sterling, and making imports more expensive, lower rates cause inflation even when the economy is slowing. And – lock me in the Tower for saying so – surely our monetary policy, combined with gargantuan government borrowing, could soon cause a run on the pound.
Even if we avoid such a disaster, a weaker currency makes it harder for the Government to sell its debt. The UK needs to sell £150bil of gilts in each of the next three years – more than triple the recent annual average.
Then there’s the impact of ultra-low rates on savers – the great unsung losers when the MPC hits the panic button. Weighed down by debts and insolvencies, the UK desperately needs to save more – so providing the deposits, and stability, that will get credit moving. Half our workforce – 13 million people – have very little or no savings at all.
Yet, here we are, trying to repair a debt-crisis with more debt, a lack of saving by discouraging saving further. Through political weakness, and regulatory neglect, the West brought this crisis on itself – and the rest of the world. If that wasn’t bad enough, we’re now making the same crisis even worse.
Source: The Star Online @ Money3.com.my
Date: 10/12/2008
Tuesday, December 9, 2008
MEF Survey: Average Salary Increase And Bonus On The Downtrend In 2009
There is an downward trend in companies granting salary increases and bonuses for their employees in 2009, in view of the global economic uncertainties, a survey by the Malaysian Employers Federation (MEF) indicated.
"Many respondent companies have adjusted the forecast salary increases and the bonus payment for 2009 in view of the global economic downturn," the MEF president, Datuk Azman Shah Haron told a media briefing on the 2008 MEF Salary Survey for Executives and Non-Executives here Tuesday.
The overall average forecasted salary increase for executives in 2009 after taking into account the global economic uncertainties, was lower at 5.53 percent compared with an earlier forecast of 5.78 percent.
As for non-executives, the number is expected to be at 5.59 percent for next year from the 5.85 percent estimated earlier.
"The actual salary increase for 2008 was at 6.09 percent for executives and 5.69 percent for non-executives.However, the numbers have been adjusted due to the sharp increase in fuel prices in June this year," he said.
Azman said the forecasted salary increase for executives in the manufacturing sector was lower at 5.50 percent compared with the 5.56 percent in non-manufacturing sector.
The MEF survey, completed in August this year, saw the participation of 202 member companies. It covered 15,163 executives and 43,499 non-executives.
Azman said that generally, employers needed to retain the talent within the companies and would cut other costs in tightening their belts during the slowdown.
"Retrenchment would be the last option," he said.
In terms of bonus, 72.1 percent of the respondent companies estimated it would be granted to non-executives in 2009 while 59.8 percent forecast the payment for executives.
However, the average forecasted bonus payment for non-executives in 2009 after taking into account the global economic downturn, was lower at 1.78 months compared with the 1.99 months estimated earlier.
Meanwhile, the bonus payment for executives will be at 1.98 months in 2009 as against 2.10 months forecasted before.
Azman said about 90 percent of the respondent companies granted a bonus to their employees this year with the average contractual bonus for non-executives at 1.74 months and 1.85 months for executives.
Source: Bernama.com @ Money3.com.my
Date: 09/12/2008
"Many respondent companies have adjusted the forecast salary increases and the bonus payment for 2009 in view of the global economic downturn," the MEF president, Datuk Azman Shah Haron told a media briefing on the 2008 MEF Salary Survey for Executives and Non-Executives here Tuesday.
The overall average forecasted salary increase for executives in 2009 after taking into account the global economic uncertainties, was lower at 5.53 percent compared with an earlier forecast of 5.78 percent.
As for non-executives, the number is expected to be at 5.59 percent for next year from the 5.85 percent estimated earlier.
"The actual salary increase for 2008 was at 6.09 percent for executives and 5.69 percent for non-executives.However, the numbers have been adjusted due to the sharp increase in fuel prices in June this year," he said.
Azman said the forecasted salary increase for executives in the manufacturing sector was lower at 5.50 percent compared with the 5.56 percent in non-manufacturing sector.
The MEF survey, completed in August this year, saw the participation of 202 member companies. It covered 15,163 executives and 43,499 non-executives.
Azman said that generally, employers needed to retain the talent within the companies and would cut other costs in tightening their belts during the slowdown.
"Retrenchment would be the last option," he said.
In terms of bonus, 72.1 percent of the respondent companies estimated it would be granted to non-executives in 2009 while 59.8 percent forecast the payment for executives.
However, the average forecasted bonus payment for non-executives in 2009 after taking into account the global economic downturn, was lower at 1.78 months compared with the 1.99 months estimated earlier.
Meanwhile, the bonus payment for executives will be at 1.98 months in 2009 as against 2.10 months forecasted before.
Azman said about 90 percent of the respondent companies granted a bonus to their employees this year with the average contractual bonus for non-executives at 1.74 months and 1.85 months for executives.
Source: Bernama.com @ Money3.com.my
Date: 09/12/2008
Wednesday, November 12, 2008
Malaysia Home Loans - What's New (November, 2008)
Very soon, they will be teaching kids at school that Earth’s gravity pull is felt not only by objects but also mortgage interest rates. Talks of interest rates going up was only beginning to get going before Lenders went about reducing rates…again. It wasn’t so long ago when BLR+0% was considered “hot”.
November saw quite a bit of interest rate activities, culminating in what in our opinion, are some of the best loans ever introduced. Here are some of our favourites:
[Best BLR-based Loan]
Now, EON Bank, for the 3rd consecutive month offers the lowest BLR-based loan, this time at BLR-2.4% for the entire tenure. Launched on the 13th of November the extremely attractive package comes with a few conditions set out as follows:
- Acceptance must be within 2 DAYS of the Letter of Offer date
- Property Value RM 400K and Above
- Only for a maximum Margin Of Finance of up to 80%
- Option to finance the entry costs with additional 5% (80% + 5%)
- For Refinance, Sub-sale, New acquisition of Under Construction properties with completion status > than 70%
- Flexi Loan comes attached with deposit-linked account with cheque book.
- No account Set up Fee (unlike other similar flexi-loans for e.g., Alliance Bank Save Link, SCB Mortgage One where customer has to pay an account set up fee of RM 200 – 1 time payment)
- Monthly maintenance fee of RM 10 - Insurance is optional
[Best Overall BLR-based Loan]
Whilst there is no doubt that EON’s loan package is a winner in the interest rate stakes, critics may grumble that the RM400,000 min loan amount and the maximum margin of finance of 80% are limiting. Well gripe no more…if good rates at a higher margin is what you need, then Affin Bank surprises this month with its Affin Home Solutions briefly summarized as follows:
Affin Home Solutions (Non-Free Moving Costs)
Loan Amount Yr 1-3 Thereafter
<> RM 1.0M BLR - 2.40% BLR - 2.30%
For Free Moving Cost packages, the offers are as follows:
Loan Amount Yr 1-3 Thereafter
<> RM 1.0M BLR-2.20% BLR-2.10%
With the Margin of Finance set at a maximum of 90%, and the loan tenure stretched to a maximum of 45years up to age 75 (where most banks cap loan tenure up to a maximum of age 70), this is certainly one of the best loan packages available today. And just to make sure that they got your attention, Affin caps the loan’s interest rate to a maximum of 10%.
However, am important note is that to enjoy the full bag of goodies, all Letters Of Offer must be formally accepted within 3 days of issuance.
[Best Hybrid Islamic Home Financing-i: Fixed then Float]
Another “newcomer” to our list is none other than CIMB Islamic. For a full range of fixed then floating ISLAMIC loans, no one does it better for now. Here is a summary of what they offer:
For Completed Properties / Loan Amount RM300K to RM500K (Without MRTA)
a) Fixed Rate for 3 years
NFMC 4.90% (Yr1-3), BFR-2.15% (Thereafter)
FMC 5.10% (Yr1-3), BFR-1.95% (Thereafter)
b) Fixed Rate for 5 years
NFMC 5.40% (Yr1-5), BFR-2.15% (Thereafter)
FMC 5.65% (Yr1-5), BFR-1.95% (Thereafter)
c) Fixed Rate for 10 years
NFMC 6.25% (Yr1-10), BFR-2.15% (Thereafter)
FMC 6.45% (Yr1-10), BFR-1.95% (Thereafter)
For Under Construction Properties / Loan Amount RM300K to RM500K (Without MRTA)
d) Fixed Rate for 3 years
NFMC 5.10% (Yr1-3), BFR-1.95% (Thereafter)
FMC 5.30% (Yr1-3), BFR-1.75% (Thereafter)
e) Fixed Rate for 5 years
NFMC 5.60% (Yr1-5), BFR-1.95% (Thereafter)
FMC 5.80% (Yr1-5), BFR-1.75% (Thereafter)
f) Fixed Rate for 10 years
NFMC 6.45% (Yr1-10), BFR-1.95% (Thereafter)
FMC 6.65% (Yr1-10), BFR-1.75% (Thereafter)
NOTE: After the fixed years, the rate is cheaper by a further 0.1% if the borrower takes MRTA.
Other features of this loan include:
- Option to choose Free Moving Cost (FMC)/ Non-Free Moving Cost Package (NFMC);
- Rate protection with capped ceiling rate at 10.75%;
- No stamp duty for refinancing from conventional loan;
- 20% discount on stamp duty for new purchases;
- For completed and Under Construction properties and for landed & Non-landed.
[Best Fixed Rate Loan]
AIA regains the “lowest fixed rate” throne with the introduction of a few new rates
1) Standard Home Loan Packages
NZMC MOF: 80%-90%
MOF: Below 80% 5.85%
5.75%
ZMC MOF: 80%-90%
MOF: Below 80% 5.99%
5.89%
2) AIA Mortgage Save Packages
NZMC MOF: 80%-90%
MOF: Below 80% 5.70%
5.60%
ZMC MOF: 80%-90%
MOF: Below 80% 5.85%
5.75%
Lending Terms & Conditions for AIA Mortgage Save
- Customer is required to purchase a new AIA Whole Life Non-Par (WLNP) policy to fully cover the loan
- The new AIA policy purchased is to be assigned to the loan and must be kept in force throughout the entire loan duration.
Source: Money3.com.my
November saw quite a bit of interest rate activities, culminating in what in our opinion, are some of the best loans ever introduced. Here are some of our favourites:
[Best BLR-based Loan]
Now, EON Bank, for the 3rd consecutive month offers the lowest BLR-based loan, this time at BLR-2.4% for the entire tenure. Launched on the 13th of November the extremely attractive package comes with a few conditions set out as follows:
- Acceptance must be within 2 DAYS of the Letter of Offer date
- Property Value RM 400K and Above
- Only for a maximum Margin Of Finance of up to 80%
- Option to finance the entry costs with additional 5% (80% + 5%)
- For Refinance, Sub-sale, New acquisition of Under Construction properties with completion status > than 70%
- Flexi Loan comes attached with deposit-linked account with cheque book.
- No account Set up Fee (unlike other similar flexi-loans for e.g., Alliance Bank Save Link, SCB Mortgage One where customer has to pay an account set up fee of RM 200 – 1 time payment)
- Monthly maintenance fee of RM 10 - Insurance is optional
[Best Overall BLR-based Loan]
Whilst there is no doubt that EON’s loan package is a winner in the interest rate stakes, critics may grumble that the RM400,000 min loan amount and the maximum margin of finance of 80% are limiting. Well gripe no more…if good rates at a higher margin is what you need, then Affin Bank surprises this month with its Affin Home Solutions briefly summarized as follows:
Affin Home Solutions (Non-Free Moving Costs)
Loan Amount Yr 1-3 Thereafter
<> RM 1.0M BLR - 2.40% BLR - 2.30%
For Free Moving Cost packages, the offers are as follows:
Loan Amount Yr 1-3 Thereafter
<> RM 1.0M BLR-2.20% BLR-2.10%
With the Margin of Finance set at a maximum of 90%, and the loan tenure stretched to a maximum of 45years up to age 75 (where most banks cap loan tenure up to a maximum of age 70), this is certainly one of the best loan packages available today. And just to make sure that they got your attention, Affin caps the loan’s interest rate to a maximum of 10%.
However, am important note is that to enjoy the full bag of goodies, all Letters Of Offer must be formally accepted within 3 days of issuance.
[Best Hybrid Islamic Home Financing-i: Fixed then Float]
Another “newcomer” to our list is none other than CIMB Islamic. For a full range of fixed then floating ISLAMIC loans, no one does it better for now. Here is a summary of what they offer:
For Completed Properties / Loan Amount RM300K to RM500K (Without MRTA)
a) Fixed Rate for 3 years
NFMC 4.90% (Yr1-3), BFR-2.15% (Thereafter)
FMC 5.10% (Yr1-3), BFR-1.95% (Thereafter)
b) Fixed Rate for 5 years
NFMC 5.40% (Yr1-5), BFR-2.15% (Thereafter)
FMC 5.65% (Yr1-5), BFR-1.95% (Thereafter)
c) Fixed Rate for 10 years
NFMC 6.25% (Yr1-10), BFR-2.15% (Thereafter)
FMC 6.45% (Yr1-10), BFR-1.95% (Thereafter)
For Under Construction Properties / Loan Amount RM300K to RM500K (Without MRTA)
d) Fixed Rate for 3 years
NFMC 5.10% (Yr1-3), BFR-1.95% (Thereafter)
FMC 5.30% (Yr1-3), BFR-1.75% (Thereafter)
e) Fixed Rate for 5 years
NFMC 5.60% (Yr1-5), BFR-1.95% (Thereafter)
FMC 5.80% (Yr1-5), BFR-1.75% (Thereafter)
f) Fixed Rate for 10 years
NFMC 6.45% (Yr1-10), BFR-1.95% (Thereafter)
FMC 6.65% (Yr1-10), BFR-1.75% (Thereafter)
NOTE: After the fixed years, the rate is cheaper by a further 0.1% if the borrower takes MRTA.
Other features of this loan include:
- Option to choose Free Moving Cost (FMC)/ Non-Free Moving Cost Package (NFMC);
- Rate protection with capped ceiling rate at 10.75%;
- No stamp duty for refinancing from conventional loan;
- 20% discount on stamp duty for new purchases;
- For completed and Under Construction properties and for landed & Non-landed.
[Best Fixed Rate Loan]
AIA regains the “lowest fixed rate” throne with the introduction of a few new rates
1) Standard Home Loan Packages
NZMC MOF: 80%-90%
MOF: Below 80% 5.85%
5.75%
ZMC MOF: 80%-90%
MOF: Below 80% 5.99%
5.89%
2) AIA Mortgage Save Packages
NZMC MOF: 80%-90%
MOF: Below 80% 5.70%
5.60%
ZMC MOF: 80%-90%
MOF: Below 80% 5.85%
5.75%
Lending Terms & Conditions for AIA Mortgage Save
- Customer is required to purchase a new AIA Whole Life Non-Par (WLNP) policy to fully cover the loan
- The new AIA policy purchased is to be assigned to the loan and must be kept in force throughout the entire loan duration.
Source: Money3.com.my
Wednesday, November 5, 2008
The Best Home Loan Package At Your Fingertips
Buying a home is a life-transforming event in terms of financial and social commitments as well as status.
Choosing a financing package for the purchase can be one of the most stressful and important decisions in a persons life.
As you embark on one of the biggest financial decisions you would ever make in your lifetime, it is important to be aware that where home loan packages go, many things are open to interpretation, and sometimes the consequences of an uninformed decision could prove dire.
Getting it right the first time can save you thousands of ringgit. Otherwise, you may find your finances strained as you travel further down the long and winding road of home ownership.
Shopping around and comparing notes is an indispensable part of the search process. But looking for that gem of a deal that suits your requirements to a T can be a daunting experience.
Bombarded with an onslaught of innocuous acronyms and impressive financial jargon from over 500 different home loan packages offered by over 30 lenders in the country; even the money savvy can be overwhelmed.
For the layperson that lacks the depth in financial techniques and knowledge, it would be a Herculean task to separate the wheat from the chaff, from the torrent of information available to determine what is right.
Many among us would welcome a little help in this department before we feel comfortable enough to sign on the dotted line.
Wouldn't it be great if you can talk to an experienced financial advisor or consultant who listens to your needs and is able to proffer an unbiased opinion on the pros and cons of the different aspects in home loan packages, and determine the one most suitable for you, at no extra cost?
HELP AVAILABLE AT YOUR FINGERTIPS
The discerning consumer will be elated to know that such services are indeed available at your fingertips.
Incorporated in Malaysia on Oct 16, 2002, Capital Tree Sdn Bhd (Money3) provides the consumer with relevant up-to-date information on all home loan packages offered by financial institutions in the country.
"A home loan is a financial commitment that changes one's entire financial horizon. Being laden with a home loan will dictate how you manage your personal finances thereafter," Money3 Senior Partner, Martin Chow told Bernama in an exclusive interview recently.
However, according to Chow, in accessing their eligibility for a home loan, borrowers invariably will only take their present financial position into consideration.
But the stark reality is that a person's financial position is hardly ever fixed and yet, most of the time, a very important and substantial financial decision is made based on a very narrow parameter.
In the mid to long-term, a wrong type of mortgage works against that persons financial health.
Presently, so long as the monthly repayment does not exceed a certain percentage of their monthly income as predetermined by the lender, most will be happy to accept the loan.
"Borrowers almost always never take into consideration contingencies like future increase in the base lending rate (BLR), hiccups in cash flows created by unforeseen emergencies or the probability of losing one's present job.
In any case, most if not all hardly ever take into account the impact of the home loan on their ability to adequately save for future expenses such as their children's education and the ultimate need for medical and surgical attention," Chow said.
The reality is that even small changes can have significant effects in the web of life.
One should always be prepared for the unexpected and have workable alternatives at hand for such eventualities. It is to one's best interest not to throw caution to the wind and eventually end up as victim of one's ignorance.
"Most people do not factor in these considerations because they do not know how to," Chow explained.
INDEPENDENT AND UNBIASED ANALYSIS
Money3 specialises in creating computer software and developing financial programmes as tools for analysing monetary and loan packages and services tailored to local economic environment.
Launched in February, the company's website at http://www.money3.com.my/ is the conduit for a convenient way of applying for home loans for the Malaysian consumer and provides such information free of charge.
The website is constantly updated with accurate and truly independent real-time information on the latest home loans available, as well as tools such as calculators for the consumer to use and sort things out, in deciding which package is best suited to his or her requirements.
Money3's multi-level online Loan Search programme allows the consumer to factor in what one is looking for in a home loan package.
Once all the input has been entered, the system will filter through every home loan package available in the country and produce an independent and unbiased analysis of the Top Ten list of lenders, based on the parameters given.
"Our experienced consultants can also provide either over-the-telephone or face-to-face consultation to chisel out workable compromises that satisfy your requirements but at the same time does not burn a hole in your pocket," Chow said.
CLOSE COLLABORATION
Money3 work in close collaboration with several banks - local and foreign - on issues relating to product development, creating sales channels as well as distribution and outsource functions.
These banking institutions have initiated proactive measures by providing information and data support, and are even prepared to factor the company's input into their financial products, all in the name of providing better quality products with faster turnaround time and at a cheaper rate.
"Our partners recognised the fact that as more and more people become aware of the need to develop an aptitude for personal financial planning, they will become better quality customers. Consequently, the propensity for non-performing loan (NPL) diminishes," Chow explained.
This meaningful teamwork and fruitful cooperation has resulted in a cross-pollination of ideas that have opened the floodgate for progressive financial software that will be incorporated into the company's website.
UNIT TRUST AND INSURANCE PORTALS
Liabilities, with a little ingenuity, can be turned into assets. Conversely, assets left to deteriorate and not improved upon, can eventually become liabilities.
Thus, in the ever-evolving world of personal finance, the customer has all the right to expect financial consultants to know more, do more and advise more.
Congruent to such expectations, Money3 will, in the coming few weeks, be rolling out its Unit Trust and Insurance Portal.
In any investment, situations and circumstances can change at the blink of an eye and may require a reversal of decisions made earlier.
The prudent investor should always monitor his portfolio and take decisive actions to stay on top of things.
Everybody would at least know of a person who, as a result of injudicious investments and a cavalier disregard for financial management, has been left with nothing but the shirt on his back.
In recognition of this fact, the Unit Trust Portal has robust safeguards like monitoring, weekly performance report and red-flag functions to allow stopgap measures to enhance gains and prevent losses.
The primary objective of www.money3.com.my is to provide Malaysian consumers with critical up-to-date information on all the financial products available in the money and capital markets, so that they can exercise their freedom of choice in making well-informed and financially savvy decisions.
For the purposes of communication and illumination, such proactive features on the company's website would transform consumers from merely being passive armchair participants to assertive investors.
"The Unit Trust Portal is designed to empower the investor to make informed decisions in different economic environments, critical to minimising investment risks, rather than rely on sales pitch and hearsay advice.
For the professional agent, this portal is set to be the best friend in providing top-level service and added value to their clients," said Chow.
Money3 will soon spread its wings to East Malaysia and is also presently speaking to interested parties in various other states in the Peninsular, with a view of expanding the company's products and services there.
"Ultimately, we want to be the go-to place for those seeking home loan packages and investment opportunities," Money3s affable head honcho declared with spirited enthusiasm.
With over three million hits a month, and growing by the day, that time may not be long in coming.
Source: Money3.com.my
Choosing a financing package for the purchase can be one of the most stressful and important decisions in a persons life.
As you embark on one of the biggest financial decisions you would ever make in your lifetime, it is important to be aware that where home loan packages go, many things are open to interpretation, and sometimes the consequences of an uninformed decision could prove dire.
Getting it right the first time can save you thousands of ringgit. Otherwise, you may find your finances strained as you travel further down the long and winding road of home ownership.
Shopping around and comparing notes is an indispensable part of the search process. But looking for that gem of a deal that suits your requirements to a T can be a daunting experience.
Bombarded with an onslaught of innocuous acronyms and impressive financial jargon from over 500 different home loan packages offered by over 30 lenders in the country; even the money savvy can be overwhelmed.
For the layperson that lacks the depth in financial techniques and knowledge, it would be a Herculean task to separate the wheat from the chaff, from the torrent of information available to determine what is right.
Many among us would welcome a little help in this department before we feel comfortable enough to sign on the dotted line.
Wouldn't it be great if you can talk to an experienced financial advisor or consultant who listens to your needs and is able to proffer an unbiased opinion on the pros and cons of the different aspects in home loan packages, and determine the one most suitable for you, at no extra cost?
HELP AVAILABLE AT YOUR FINGERTIPS
The discerning consumer will be elated to know that such services are indeed available at your fingertips.
Incorporated in Malaysia on Oct 16, 2002, Capital Tree Sdn Bhd (Money3) provides the consumer with relevant up-to-date information on all home loan packages offered by financial institutions in the country.
"A home loan is a financial commitment that changes one's entire financial horizon. Being laden with a home loan will dictate how you manage your personal finances thereafter," Money3 Senior Partner, Martin Chow told Bernama in an exclusive interview recently.
However, according to Chow, in accessing their eligibility for a home loan, borrowers invariably will only take their present financial position into consideration.
But the stark reality is that a person's financial position is hardly ever fixed and yet, most of the time, a very important and substantial financial decision is made based on a very narrow parameter.
In the mid to long-term, a wrong type of mortgage works against that persons financial health.
Presently, so long as the monthly repayment does not exceed a certain percentage of their monthly income as predetermined by the lender, most will be happy to accept the loan.
"Borrowers almost always never take into consideration contingencies like future increase in the base lending rate (BLR), hiccups in cash flows created by unforeseen emergencies or the probability of losing one's present job.
In any case, most if not all hardly ever take into account the impact of the home loan on their ability to adequately save for future expenses such as their children's education and the ultimate need for medical and surgical attention," Chow said.
The reality is that even small changes can have significant effects in the web of life.
One should always be prepared for the unexpected and have workable alternatives at hand for such eventualities. It is to one's best interest not to throw caution to the wind and eventually end up as victim of one's ignorance.
"Most people do not factor in these considerations because they do not know how to," Chow explained.
INDEPENDENT AND UNBIASED ANALYSIS
Money3 specialises in creating computer software and developing financial programmes as tools for analysing monetary and loan packages and services tailored to local economic environment.
Launched in February, the company's website at http://www.money3.com.my/ is the conduit for a convenient way of applying for home loans for the Malaysian consumer and provides such information free of charge.
The website is constantly updated with accurate and truly independent real-time information on the latest home loans available, as well as tools such as calculators for the consumer to use and sort things out, in deciding which package is best suited to his or her requirements.
Money3's multi-level online Loan Search programme allows the consumer to factor in what one is looking for in a home loan package.
Once all the input has been entered, the system will filter through every home loan package available in the country and produce an independent and unbiased analysis of the Top Ten list of lenders, based on the parameters given.
"Our experienced consultants can also provide either over-the-telephone or face-to-face consultation to chisel out workable compromises that satisfy your requirements but at the same time does not burn a hole in your pocket," Chow said.
CLOSE COLLABORATION
Money3 work in close collaboration with several banks - local and foreign - on issues relating to product development, creating sales channels as well as distribution and outsource functions.
These banking institutions have initiated proactive measures by providing information and data support, and are even prepared to factor the company's input into their financial products, all in the name of providing better quality products with faster turnaround time and at a cheaper rate.
"Our partners recognised the fact that as more and more people become aware of the need to develop an aptitude for personal financial planning, they will become better quality customers. Consequently, the propensity for non-performing loan (NPL) diminishes," Chow explained.
This meaningful teamwork and fruitful cooperation has resulted in a cross-pollination of ideas that have opened the floodgate for progressive financial software that will be incorporated into the company's website.
UNIT TRUST AND INSURANCE PORTALS
Liabilities, with a little ingenuity, can be turned into assets. Conversely, assets left to deteriorate and not improved upon, can eventually become liabilities.
Thus, in the ever-evolving world of personal finance, the customer has all the right to expect financial consultants to know more, do more and advise more.
Congruent to such expectations, Money3 will, in the coming few weeks, be rolling out its Unit Trust and Insurance Portal.
In any investment, situations and circumstances can change at the blink of an eye and may require a reversal of decisions made earlier.
The prudent investor should always monitor his portfolio and take decisive actions to stay on top of things.
Everybody would at least know of a person who, as a result of injudicious investments and a cavalier disregard for financial management, has been left with nothing but the shirt on his back.
In recognition of this fact, the Unit Trust Portal has robust safeguards like monitoring, weekly performance report and red-flag functions to allow stopgap measures to enhance gains and prevent losses.
The primary objective of www.money3.com.my is to provide Malaysian consumers with critical up-to-date information on all the financial products available in the money and capital markets, so that they can exercise their freedom of choice in making well-informed and financially savvy decisions.
For the purposes of communication and illumination, such proactive features on the company's website would transform consumers from merely being passive armchair participants to assertive investors.
"The Unit Trust Portal is designed to empower the investor to make informed decisions in different economic environments, critical to minimising investment risks, rather than rely on sales pitch and hearsay advice.
For the professional agent, this portal is set to be the best friend in providing top-level service and added value to their clients," said Chow.
Money3 will soon spread its wings to East Malaysia and is also presently speaking to interested parties in various other states in the Peninsular, with a view of expanding the company's products and services there.
"Ultimately, we want to be the go-to place for those seeking home loan packages and investment opportunities," Money3s affable head honcho declared with spirited enthusiasm.
With over three million hits a month, and growing by the day, that time may not be long in coming.
Source: Money3.com.my
Malaysia unveils RM7b stimulus plan
The government has unveiled a RM7 billion stimulus package to reinforce and stimulate the economy, and at the same time, bring relief to the public at an economically challenging time.
Announcing the stimulus package in Parliament, Deputy Prime Minister Datuk Seri Najib Razak, who is also finance minister, said the measures were proof of the governments concern for the people's well-being and to stimulate private sector confidence.
Najib said the RM7 billion was from the savings derived from cuts in the fuel subsidy.
The government will adopt an expansionary policy as is the current practice in other countries.
He said the government had the flexibility to implement value added high impact projects.
Najib said the gross domestic product would be revised downwards to 3.5 per cent for 2009, but the fiscal deficit would remain at 4.8 per cent.
The reason for the deficit is that the government chooses to continue with Budget 2009, as announced, to maintain the growth momentum.
Najib told the Dewan Rakyat that to ensure more people could own houses, RM1.2 billion has been allocated to build 25,000 units of low- and medium-cost houses.
He said RM500 million has been set aside to upgrade, repair and maintain police stations, living quarters, army camps and quarters.
Najib also said RM600 million would be channelled to minor projects, including village roads, community halls and small bridges.
The deputy prime minister said the jobs would go to small-time contractors.
Public amenities such as roads, schools and hospitals will be allocated RM500 million, while a similar amount will be used to build and upgrade roads in rural areas, villages and agriculture roads, including in Sabah and Sarawak.
Najib said RM200 million had been set aside to improve school facilities, with the funds given evenly to religious, mission, Chinese and Tamil schools.
He said RM300 million would be allocated for a fund to implement a skills programme catering to the needs of employers and industry, particularly in the development corridors.
He said RM1.5 billion would be used to set up a special fund to attract private sector investment and would be disbursed as grants, cheap loans or as equity.
Another RM100 million has been allocated to set up new business premises to increase the number of small- and medium-scale entrepreneurs.
Youth programmes will receive RM100 million.
Najib said the packages were aimed at alleviating hardship and encourage spending.
Civil servants also received some good news with the extension of all housing loans from 25 years to 30 years, while the quantum of loan to buy cars has been increased.
Najib said Bank Negara would encourage local banks to introduce a similar measure for its housing loan customers.
To encourage the development of retail business and domestic tourism industry, hyper markets can open till 11pm on weekdays and 1am on weekends. Those in shopping complexes could seek to operate round the clock.
To stimulate activity in the private sector, import duties for cement, long iron and steel products for the construction and manufacturing sectors have been abolished.
The government will also allow individuals or foreign entities to buy commercial real estate worth RM500,000 and above without any Foreign Investment Committee approval, for their own use.
Source: Business Times Online
Date: 05/11/2008
Announcing the stimulus package in Parliament, Deputy Prime Minister Datuk Seri Najib Razak, who is also finance minister, said the measures were proof of the governments concern for the people's well-being and to stimulate private sector confidence.
Najib said the RM7 billion was from the savings derived from cuts in the fuel subsidy.
The government will adopt an expansionary policy as is the current practice in other countries.
He said the government had the flexibility to implement value added high impact projects.
Najib said the gross domestic product would be revised downwards to 3.5 per cent for 2009, but the fiscal deficit would remain at 4.8 per cent.
The reason for the deficit is that the government chooses to continue with Budget 2009, as announced, to maintain the growth momentum.
Najib told the Dewan Rakyat that to ensure more people could own houses, RM1.2 billion has been allocated to build 25,000 units of low- and medium-cost houses.
He said RM500 million has been set aside to upgrade, repair and maintain police stations, living quarters, army camps and quarters.
Najib also said RM600 million would be channelled to minor projects, including village roads, community halls and small bridges.
The deputy prime minister said the jobs would go to small-time contractors.
Public amenities such as roads, schools and hospitals will be allocated RM500 million, while a similar amount will be used to build and upgrade roads in rural areas, villages and agriculture roads, including in Sabah and Sarawak.
Najib said RM200 million had been set aside to improve school facilities, with the funds given evenly to religious, mission, Chinese and Tamil schools.
He said RM300 million would be allocated for a fund to implement a skills programme catering to the needs of employers and industry, particularly in the development corridors.
He said RM1.5 billion would be used to set up a special fund to attract private sector investment and would be disbursed as grants, cheap loans or as equity.
Another RM100 million has been allocated to set up new business premises to increase the number of small- and medium-scale entrepreneurs.
Youth programmes will receive RM100 million.
Najib said the packages were aimed at alleviating hardship and encourage spending.
Civil servants also received some good news with the extension of all housing loans from 25 years to 30 years, while the quantum of loan to buy cars has been increased.
Najib said Bank Negara would encourage local banks to introduce a similar measure for its housing loan customers.
To encourage the development of retail business and domestic tourism industry, hyper markets can open till 11pm on weekdays and 1am on weekends. Those in shopping complexes could seek to operate round the clock.
To stimulate activity in the private sector, import duties for cement, long iron and steel products for the construction and manufacturing sectors have been abolished.
The government will also allow individuals or foreign entities to buy commercial real estate worth RM500,000 and above without any Foreign Investment Committee approval, for their own use.
Source: Business Times Online
Date: 05/11/2008
Tuesday, November 4, 2008
Inflation on the retreat in Asia
Inflation is slowing across Asia, giving policy makers in the region scope to reduce borrowing costs to protect their economies from a global slump.
South Korean consumer prices rose in October at the weakest pace in six months, the statistics office said yesterday in Gwacheon. Inflation also slowed more than economists expected in Indonesia and Thailand last month.
Asian central banks are switching their focus from fighting inflation to bolstering growth as the global financial crisis that has pummelled the US and Europe threatens to engulf the region's export-dependent economies. The Reserve Bank of Australia and the Bank of Korea are both expected to cut interest rates further this week, according to Bloomberg surveys.
"Central banks have room to reduce rates significantly," said Ramya Suryanarayanan, an economist at DBS Bank in Singapore. "Commodities prices are falling and demand is weakening. You will see inflation declining pretty much everywhere."
Sliding fuel and commodity prices have helped ease inflation across Asia. Crude oil has fallen 53 per cent from an all-time high of US$147.27 a barrel on July 11 and dropped 27 per cent in the past year. Copper and wheat have tumbled more than 50 per cent from records this year.
Consumer prices in South Korea rose 4.8 per cent last month from a year earlier, moderating from a 5.1 per cent gain in September and matching the median estimate in a Bloomberg survey. Prices fell 0.1 per cent in October from the previous month.
The Bank of Korea last week lowered borrowing costs by a record amount, the second reduction in less than three weeks, in an emergency move to restore confidence and revive the economy. Governor Lee Seong Tae hinted at further rate cuts.
Easing inflation in Indonesia and Thailand may give policymakers in Southeast Asia's two largest economies room to pause after raising borrowing costs earlier this year amid soaring consumer prices.
Indonesia's inflation rate declined to 11.8 per cent in October from 12.1 per cent in September, the Central Statistics Bureau said in Jakarta yesterday.
That may give Bank Indonesia room to keep its benchmark interest rate unchanged at 9.5 per cent after six consecutive increases in the measure, said economists including Enrico Tanuwidjaja from Oversea-Chinese Banking Corp in Singapore.
Consumer prices in Thailand rose 3.9 per cent in October from a year earlier, the lowest pace in 10 months and below the 4.9 per cent median estimate in a Bloomberg News survey.
Bank of Thailand policy makers, who next meet on December 3, kept the benchmark one-day bond repurchase rate at a 16-month high of 3.75 per cent on October 8 after raising it 50 basis points in two meetings since July.
"Many economies around the region have started to cut interest rates to support domestic demand and that's the right thing to do," David Burton, head of the International Monetary Fund's Asia-Pacific department, said in an interview with Bloomberg Television in Hong Kong. "Because inflation is coming off, there is room to do more on monetary policy."
China and India, the world's fastest expanding major economies, have cut borrowing costs in the past week.
The Reserve Bank of India on Saturday lowered its benchmark interest rate for the second time in two weeks, and for the first time in 11 years reduced the amount of money lenders are required to keep in government bonds.
The Bank of Japan also reduced its key overnight lending rate by 20 basis points to 0.3 per cent last Friday. Taiwan and Hong Kong also trimmed their benchmark rates last week.
Source: Business Times Online
Date: 04/11/2008
South Korean consumer prices rose in October at the weakest pace in six months, the statistics office said yesterday in Gwacheon. Inflation also slowed more than economists expected in Indonesia and Thailand last month.
Asian central banks are switching their focus from fighting inflation to bolstering growth as the global financial crisis that has pummelled the US and Europe threatens to engulf the region's export-dependent economies. The Reserve Bank of Australia and the Bank of Korea are both expected to cut interest rates further this week, according to Bloomberg surveys.
"Central banks have room to reduce rates significantly," said Ramya Suryanarayanan, an economist at DBS Bank in Singapore. "Commodities prices are falling and demand is weakening. You will see inflation declining pretty much everywhere."
Sliding fuel and commodity prices have helped ease inflation across Asia. Crude oil has fallen 53 per cent from an all-time high of US$147.27 a barrel on July 11 and dropped 27 per cent in the past year. Copper and wheat have tumbled more than 50 per cent from records this year.
Consumer prices in South Korea rose 4.8 per cent last month from a year earlier, moderating from a 5.1 per cent gain in September and matching the median estimate in a Bloomberg survey. Prices fell 0.1 per cent in October from the previous month.
The Bank of Korea last week lowered borrowing costs by a record amount, the second reduction in less than three weeks, in an emergency move to restore confidence and revive the economy. Governor Lee Seong Tae hinted at further rate cuts.
Easing inflation in Indonesia and Thailand may give policymakers in Southeast Asia's two largest economies room to pause after raising borrowing costs earlier this year amid soaring consumer prices.
Indonesia's inflation rate declined to 11.8 per cent in October from 12.1 per cent in September, the Central Statistics Bureau said in Jakarta yesterday.
That may give Bank Indonesia room to keep its benchmark interest rate unchanged at 9.5 per cent after six consecutive increases in the measure, said economists including Enrico Tanuwidjaja from Oversea-Chinese Banking Corp in Singapore.
Consumer prices in Thailand rose 3.9 per cent in October from a year earlier, the lowest pace in 10 months and below the 4.9 per cent median estimate in a Bloomberg News survey.
Bank of Thailand policy makers, who next meet on December 3, kept the benchmark one-day bond repurchase rate at a 16-month high of 3.75 per cent on October 8 after raising it 50 basis points in two meetings since July.
"Many economies around the region have started to cut interest rates to support domestic demand and that's the right thing to do," David Burton, head of the International Monetary Fund's Asia-Pacific department, said in an interview with Bloomberg Television in Hong Kong. "Because inflation is coming off, there is room to do more on monetary policy."
China and India, the world's fastest expanding major economies, have cut borrowing costs in the past week.
The Reserve Bank of India on Saturday lowered its benchmark interest rate for the second time in two weeks, and for the first time in 11 years reduced the amount of money lenders are required to keep in government bonds.
The Bank of Japan also reduced its key overnight lending rate by 20 basis points to 0.3 per cent last Friday. Taiwan and Hong Kong also trimmed their benchmark rates last week.
Source: Business Times Online
Date: 04/11/2008
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