Where Life Blooms: Rimbun Jasmine by IJM Land

Rimbun Jasmine by IJM Land was in many sharing groups recently. It achieved a very positive private preview result. Please refer to below Press Release for more information about this potential home sweet home in Seremban.

Press Release: Rimbun Jasmine by IJM Land

In the past, a space that promises a safe shelter away from harm is all that?s required in a home. But in  light of the recent challenges, the concept of home has taken a more significant role where it is  expected to provide a conducive environment to help homeowners reach their full potential, just like a  blooming flower, and help them attain a meaningful life.

To help homebuyers in finding the right home and help achieve greater heights in life,
IJM Land has  launched Rimbun Jasmine, a residential development
right next to Seremban 2 where families can  focus on building loving relationships with loved ones while enjoying the benefits of living in the  heart of convenience.

As the latest addition to their multi-award winning township, Rimbun Jasmine has
a gross  development value (GDV) of RM 73.2mil and has received overwhelming response by the  public
. Despite the recent economic downturn, the residential project was fully taken up within 3  hours.

With a pocket-friendly price tag on a thinly populated and above average-sized property, Rimbun  Jasmine proves to modern homebuyers that a life of comfort, quality and convenience is viable with  five qualities:

1. An ideal and spacious haven without breaking the bank

Comprising 129 units of 2-storey link homes within a 11.24 acre development, Rimbun Jasmine  boasts a relaxing low-density residential area that accommodates an easy-going lifestyle within a  guarded community with perimeter fencing. Additionally, the intermediate lots measure up to 20ft by  70ft, with a built up of 1932 sq ft. These make for
sufficient space
that can be compartmentalized for  different daily activities of play, work and study. The 4-bedroom and 3-bathroom layout is also  beneficial for growing families as it can accommodate more family members, while the fully-tiled car  porch and backyard add to
the unit’s versatility
when it comes to space.

With unit allocations for different target buyers, non-bumis were able to buy a home at Rimbun  Jasmine from RM 542,800 onwards, while bumis enjoyed it from RM 488,520 onwards.

2. Everything you need at just a stone’s throw away

As a freehold development located in a strategic location where homebuyers will have access to every  basic necessity within a short distance, residents can take advantage of the convenience offered by the  self-sustaining Seremban 2 township which includes quick access to a multitude of commercial and retail services such as AEON Mall, Mydin Mall, Tesco, Palm Mall and NSK Trade City within a 5km  distance.

Additionally, Rimbun Jasmine residents will also get to enjoy near and easy access to other  convenient outlets to source for basic necessities or for emergency purposes. Stores like 7-Eleven and  99 speedmart can provide daily essentials, while establishments such as Kepayang Square, S2 Uptown  Avenue, S2 Centrio and Seremban Gateway offer food and entertainment options for the community  members. Moreover, the assortment of medical facilities such as hospitals and clinics, and the  availability of major bank branches amplify the ease and convenience of the township.

3. Leading an active lifestyle

In line with the township, Rimbun Jasmine embodies the tranquil and serene environment of the town  design through its facade, which is amplified by the spacious roads and the abundance of greenery  imbued across the whole development. In promoting a healthy and balanced lifestyle, Rimbun  Jasmine has
a children playground
and an outdoor sports court & gym for the benefit of residents.  For more doses of fresh air, residents can simply drop a visit at the nearby 15-acre S2 City Park and  the 30-acre Hill Park for leisure activities. Avid hikers can also opt for Kepayang Hill,
a hiking  hotspot
, while sports enthusiasts can head over to the S2 Club for
more athletic activities
.

4. Making education a priority

In amplifying convenience for all residents regardless of age, the younger community members can  attend schools within close proximity which adds to the safety factor. The available schools include  an array of public schools, the Zenith International School and R.E.A.L Kids preschool. As they are  all located within a 3-6 km radius from the development, it would only take a few minutes of car ride  for students to reach school, or perhaps even opt for a scenic bicycle ride for transport.

5. Understanding the value of accessibility

As another advantage of living at Rimbun Jasmine, residents will have close proximity to the North South Highway, ELITE and LEKAS highways that provide quick access to and from major hotspots  such as Kuala Lumpur, Putrajaya, Cyberjaya, Malacca. Furthermore, residents can also access a toll  free road that directly connects the township to KLIA and KLIA2.

“Every resident in Seremban 2 will enjoy the convenience, amenities and accessibility aspects offered  by the township, and Rimbun Jasmine is no exception. With our newest launch, we are aiming to  appeal to homebuyers who want to focus on building close relationships with families and reach their  life goals. As for all the other worries in life, IJM Land will try its best to solve them in order to  provide our residents with a conducive lifestyle,” said Dato’ Hoo Kim See, Senior General Manager  (Central Region) of IJM Land.

With a mission to provide current homebuyers with an opportunity to own a home of their dreams  with ease during these challenging times, IJM Land has introduced a flexible ownership campaign  called „Now You Can?, and
homebuyers will be eligible
for the benefits offered. Running from now  until 31
st
October 2020, potential homebuyers will be presented with customized plans and solutions  to alleviate their financial burdens and support their investments.

Homebuyers can also take advantage of the Home Ownership Campaign (HOC) 2020 to enjoy  attractive deals on a variety of IJM Land properties, including home furnishing package,
zero interest  payment plans, free loan legal fees
, plus HOC benefits of stamp duty exemption on MOT up to  RM1mil and stamp duty on loan up to RM2.25mil.

Seremban 2 will be launching more exciting projects in the coming months, so interested homebuyers
can head over now to Seremban 2’s sales gallery
and register yourself to get the latest updates.

For more information on Rimbun Jasmine, visit
http://seremban2.ijmland.com/rimbun_jasmine/Default.aspx#home

— End of press release —

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Ringgit down, so buy, buy and buy Iskandar? :)

Please allow me to smile a little. I read a report saying that Iskandar properties would be attractive to Singaporeans because the Ringgit is showing a weakening sign versus SGD. To be honest, I am not sure how much the effect would be. To me, Singaporean investors are considered quite a savvy lot. They would buy because its attractive and has good potential returns, never because of the currency. Also, majority of the purchasers thus far, I feel would be Johoreans or Malaysians working in Singapore instead of Singaporeans themselves. I read somewhere before which said that half of all buyers are those working in Singapore. I think this is a fair assessment. Reason is not many Johoereans working in Johor and staying in landed homes would be too excited about buying high-rise even if the view is overlooking Singapore or the sea or water or any awesome views.

However, one thing which I believe is true is this. For people who seriously think a garden and a nice porch which can fit 2-3 cars is a very good addition, then Johor is the best place for that to happen. Even a bigger HDB flat in a more popular area would be higher priced than a landed or gated and guarded property in Johor today. So, that itself would be a very attractive proposition. According to the Johor Real Estate and Housing Developers Association branch chairman Hoe Mee Ling, “Johor Baru’s close proximity to Singapore is an added advantage (for Iskandar Malaysia) to attract Singaporean buyers because they can have the best of both worlds.” Of course, the currency would then be an added incentive. Now, it sounds much more objective instead of the original article in a newspaper where the first sentence is already saying that currency is the most important factor.

The report then touched on a few people who said that Bank Negara should come up with measures to ensure the Ringgit does not fluctuate too much as in the long run this will cause much uncertainty not just to the market but also to businesses as it would be hard for them to plan. I am not sure if they are serious because one of the measures to keep the Ringgit stronger is to increase the interest rates which I think would be a bad thing for the current slow market. Also, the current fluctuations has very little to do with the economic fundamentals and even the oil prices in the world today has little to do with the demand. It is more on the rivalry between two oil producers, one wanting the other to stop and the other pressuring the other to STOP or reduce their production so that prices can recover. These days, the world is just like that. You win, if you have a deeper pocket. Hey, that’s just like the society. Happy reading.

written on 3 Dec 2014

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Ringgit down, Buying up?

There has been many reports which said that with the Ringgit down to new lows, foreign interest in Malaysian properties may be increasing. I do not really agree unless of course these buyers are able to see through that the current so called ‘depreciation’ is actually caused more of the uncertainty and the US$ appreciation instead of the weakening fundamental in 2014. US$ is up against every major currency in the world today. Euro is faring worst than Ringgit. Yes, Ringgit is down a lot. Would foreigners be coming in strongly? Highly unlikely. They are just like the majority, adopting a wait-and-see attitude for now. The reason is not because of the attractiveness of the property due to Ringgit’s drop. The reason is because they are not certain if the Ringgit may drop further. If it does, their investment would be even worst in the long run.

Secondly, do not forget that even the Singaporean market which is considered more international is also down. If I am an international investor from China, my first choice is still Singapore like for the past many years. If I intend to skip ASIA, then I would head to London where the property prices are also weakening. Thus, in terms of actual attractiveness even with the fall of Ringgit, there are still a few other choices. These other choices are also cheaper because their currency has also dropped when compared to US$ as well as the many currencies which uses it as a benchmark. Think objectively, I own a London property versus I own a Malaysian property, which do you think brings more ‘wow’ from the rest of your friends?

Nevertheless, I personally think that Malaysian property continue to be attractive for just one main reason. Long term. We are still a young country. Demand can only increase and not reduce. Growth is still continuing and in terms of the world competitiveness index, despite being a small nation, we are right up there with the rest. This gives us a lot of attention. I also believe the current situation cannot persist forever. Seriously, US economy is still doing fine but the US$ cannot climb like there’s no tomorrow. At some point, some one just have to say, ‘high enough’, then the adjustment would restart. Do not forget, when Ringgit was very strong previously, majority of all analysts were also singing praises of the Ringgit. Suddenly today, everyone is saying otherwise. Please do ask any economist and they will tell you that fundamentals cannot suddenly change within few months unless it’s due to some special circumstances. For now, I think it is. Malaysian companies are tough and I have confidence that it will somehow go through this current stormy night. Happy believing or happy divesting what you are still holding today. It’s just a choice anyway.

written on 10 Jan 2015

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RM down, end of the road soon?

A Facebook comment I saw prompted me to write down my personal views about my country’s currency, Ringgit (RM). Of course, if that Facebook user can write his comments and share with the world, I should be allowed to also write my comments with actual references to actual currencies in the world. This is not just based on an empty comment like, ‘RM is going to be worst than 1998’ or even ‘Currency may need to be pegged again to save it.’

RM is down versus US$. True. No one can doubt that. Following are the major currencies which has ALSO depreciated versus US$. Yen, EURO, British Pound and even RMB. Are all these currencies also in deep trouble? The last I checked, answer was no. Or perhaps another side of the coin would be, is the US economy doing exceptionally well for the past 12 months? Growing, sure. Exceptionally well? I found nothing of such report but I did find many more negative reports and even a few predicting the US stock market to be on the verge of crashing.

Then, why is RM depreciating every now and then and it’s a downtrend? My personal opinion is that when times are uncertain, the current more international currency would be considered a safe haven to park their money in. This international currency as at today remain to be the US dollar. Economic growth last year was 5.8 percent in Malaysia, hardly considered low.

For 2015, despite whichever way the currency is moving, it will still be around 5 percent. This prediction is the view of majority of all analysts whether local or international ones. Do note too that even when it comes to rating from international rating agencies, Malaysia continued to be rated at the ‘investment grade’ level. We will see if the next one is a downgrade then.

Oh yeah, have you been to developer launches where the properties are priced below RM500,000 today? Go and feel the ‘carnival’ environment. When was the last time you have been to a Starbucks and could not find places to sit? The car sales continue to be up, especially for the foreign brands. The export of electronics remain strong and tourism had a good year last year too. None of these should be happening if the economy is indeed going down the drain.

1MDB affecting the whole economy? Haha. 1MDB will affect a lot of people, definitely. Especially the names and the companies mentioned one way or the other. However, it will not be a major reason why Ringgit goes up or down. Oh yeah, remember, stop SPENDING your money if you truly believe the crisis is about to arrive. It is much more prudent if you have cash during an economic crisis. Every economist or even accountant would tell you this advice. Please follow. Happy reading and believing and please take action!

written on 12 March 2015

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Ringgit down, thus property prices up.

Reported in an English daily quoting someone in the property industry. Ringgit is depreciating, therefore property prices would be hiked up? Reason given is because the materials are becoming more expensive and workers are asking for even higher pay. Assuming that I agree with this assessment, it is best for anyone who says so to give a detail breakdown of the actual increase due to Ringgit’s depreciation. After all, transparency should be a virtue for both the public and the private sectors. Only by having this that both sides can continue to provide honest feedbacks as wells check and balance versus simply giving a statement which sounded really hollow. Am I right?

A few suggestions were given to help the property developers to cope with this increase as well as to ensure the vibrancy of the property market. They include abolishing the cooling measures implemented including Real Properties Gains Tax (RPGT), foreign own ownership minimum price levels and the tight lending rules. It is believed that when more foreigners can buy properties here, it would help stabilise the ringgit. This is because the demand for ringgit would go up. Besides that, without RPGT, demand would increase for sure as many are reluctant to be tied for 5 years. As for tight lending rules, I disagree. There are plenty of choices and one should also consider cheaper secondary properties too.

Ringgit down has sparked a downtrend of the share market. To a lesser extent, it has also dampened sentiment in the property market. It has however not done much to the actual property prices, at least even till Q1 2015, not yet. Thus, whether property prices would trend upwards or downwards would depend on the demand. The demand meanwhile would depend also on locations. Secondary locations would remain second choice. A prominent speaker told me that other day about landed properties being less than RM400,000 but the banks are only willing to end maximum 80%. I think the sign is clear. Prices are not on the way up unless of course everyone is so blinded to buy just that few popular hotspots. I am however not a developer. Maybe they know things I do not. We shall see.

written on 1 Sept 2015

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Ringgit down, Ratings stay – Moody’s.

Somehow, the ‘heavy rain’ has also created some rainbows here and there. Moody’s Investor’s Service said that the depreciation of Ringgit of about 11% (yes recovered slightly on 4th Feb 2015) will not affect Malaysia’s sovereign rating much. The reason is because 97% of the government’s debt is denominated in Ringgit. Quite a clever government in this case, even if there are many things which many would not agree. The one who said it? It’s vice president-senior analyst of Sovereign Risk Group Christian de Guzman. He said that countries such as Indonesia or the Philippines would have much higher exposure as their exposure is 40%. (very high indeed). He also said that despite current uncertainties, Malaysia’s economy is expected to continue to be positive, with low inflation and even a robust external payments positions compared to other A-rated countries. Note, we are compared to other A-rated countries, even as at today, 5th February 2015.

Of course, there are also negatives, especially the high household debt which some reports said may cause more headwinds in future. The most awesome comment is this: As long as fiscal deficit and debt burden continues to reduce, we may even have an upgrade in ratings. Last but not least, he said that Malaysian banks are among the top-five highest rated banking systems in Asia Pacific and second in Asean.

Sometimes we may not understand a lot about all these ratings but always remember that for any investors who know next to nothing from a far away place to invest here in Asia, they have to rely on all these ratings to help them in deciding. Honestly, even if you are buying properties, would you want to buy in a country where the economy is weak and the ratings are below investment grade? This has always been the main reason why when properties come into mind for ASEAN, the first country is Singapore. Strong surplus position, robust economy as well as an open business environment meant that it’s always a favourite of many. Note: The more it goes up, the more it may also drop. The luxury properties in Singapore has also dropped a lot in 2014 and is expected to be weak in 2015 too. Would the property market be a ‘darling’ again? Without any doubt, yes but under current negative condition, no.

Property investment is not just about how the property is doing. Understanding a little more meant that you make better decisions. Even if I were to buy into other countries 10 years from now, I would also rely on these ratings as a main consideration. It is tough to only listen to my friends because many times, only those who were successful would tell you their stories while many others who were not would just keep quiet. Agree? Happy reading and understanding.

written on 5th Feb 2015

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Fundamentally, Malaysia is better than MANY, including that country.

Today is another good day. BERSIH 5.0 came and go without any untoward incidents. It meant that Malaysians are mature enough to understand that exercising rights to demonstrate has nothing to do with creating havoc. Thank you all those who participated and thank you to all those who were committed to keep peace regardless of who you are. Here, I would also like to add that I really do hope that Malaysians would start understanding that being an awesome Malaysian is more than just walking around in yellow T-shirts. It also meant that if our country is being ‘attacked’ unfairly, we should also speak out objectively. Do read the below warning by Bank Negara Malaysia as per published in Bernama. Fundamentally, ringgit should not be at current value. Thus, stop being a hypocrite and kept talking bad about Malaysia currently and stayed quiet when ringgit was the top performer in Asia just months ago. Surely, fundamental cannot change overnight? Happy reading.

— start of
NST
article (BERNAMA)

Bank Negara Malaysia (BNM) will no longer tolerate ringgit transactions in the non-deliverable forward (NDF) market and its damaging influence over the onshore pricing of the local currency, said its Governor, Datuk Muhammad Ibrahim.

He said that the activities in the offshore market, in particular the ringgit NDF market, had brought on observable adverse impacts on the onshore market. “The impact of the NDF market volatility has been clearly pervasive in the onshore market and several foreign exchange (FX) traders in the domestic market were observed to be looking towards the NDF market to provide cues in determining the opening market price for the ringgit.

“The sum effect of these behaviours is that we inadvertently imported the NDF volatility into the onshore market,” he said in his opening remarks at the Financial Market Association Annual Dinner here, last night. The offshore market, which is driven by speculative interest, lacks the onshore market’s diverse spectrum of market participants and information.

Muhammad also said that onshore banks were reminded against quoting onshore ringgit opening price referencing to the offshore prices. Markets should not price the ringgit excessively or out of sync with the underlying fundamentals. “We have also reminded onshore banks to avoid dealing in FX with non-resident banks suspected of engaging in NDF speculative activities except for those that provide confirmation of their non-involvement in the offshore ringgit NDF market. “This week has seen many noises surrounding these measures. There is no new policy on capital flows. There is no proxy capital control either. In fact, Malaysia’s current account remains free with free mobility of inflows and outflows of capital for investments,” he added. Going forward, he envisaged that the Financial Markets Committee, which was formed early this year to formulate and propose strategies to take the financial market development forward, would work with the industry to come up with new strategies and ideas to deepen and support the development of Malaysia’s onshore market. — BERNAMA

— End of article —

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Ringgit should be driven only by fundamentals and genuine trade

Yes, I personally believe everyone should understand and note that currency movements, especially for emerging markets are due to external issues and has nothing to do with sudden deterioration of fundamentals. Anyway, it can’t happen overnight and certainly not when the GDP of Malaysia for Q3 is still positive. I also DISLIKE anyone manipulating currencies so that they can earn profits which is definitely at the expense of most Malaysians! Below is the statement from Bank Negara Malaysia. Full and original article in
Starbiz
here.

Below is the statement by the Financial Markets Committee on Financial Market Stabilisation Measures:

With the surge in volatility, the ringgit foreign exchange market has become prone to extreme movements.

“Recent offshore market activities have brought on significant volatility and undue adverse influence on ringgit prices.  “As the ringgit is a non-internationalised currency, prices should be fully determined by onshore financial market transactions that are be driven only by the fundamentals and genuine trade and investment activities in Malaysia”, says Assistant Governor Adnan Zaylani.

Bank Negara Malaysia is taking measures to ensure the markets do not price ringgit excessively and out of sync, while providing the necessary liquidity in the foreign exchange market.

The Central Bank, through the Financial Markets Committee (FMC), is also in close engagement with all market participants to update and monitor the market situation.

The FMC thus would like to reiterate to market participants that Malaysian financial markets are open to all market participants to facilitate their financial market transactions and capital flows arising from the real economic sectors, trade and investment activities.

This was what the Monetary Authority of Singapore said, in a statement.  “MAS stands ready to curb excessive volatility in the trade-weighted Singapore dollar if needed.” Full article
here
.

Happy reading, else it’s time to
hedge everything you
 have everywhere else and not the countries in the image. Yes, it can’t be true that every country in the image has also suddenly all lost their fundamentals simply because of one ‘misunderstood man’? Yes, I am talking about the new President for the largest economy in the world. He has affected all the emewrging markets’ currencies. Sigh…. As for me, I can only continue to write and share and perhaps contribute a bit more to the economy by buying a few more pairs of shoes. 🙂

written on 11 Nov 2016

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Ringgit’s value is determined by the market. Period.

My colleague told another colleague who was visiting Australia two weeks ago about the Ringgit. She said, ‘Aiya, when we go overseas, no need to think about buying anything. Ringgit has depreciated so much.’ When I pointed out that it’s not true versus all currencies and definitely not versus AUD, she replied, ‘Can’t be. Ringgit depreciated 25 percent!’ I smiled and moved on to other things. Actually, if we wish to compare one year ago versus today, 27th September 2016, Ringgit has appreciated close to 8 percent versus the US$ and I do not wish to comment on the reason for that AWESOME currency’s appreciation. Just let it be…… As for Ringgit vs the AUD, based on 12 months basis using XE.com as at today, it has barely moved.

Yes, with regards to how to handle the Ringgit, I like the new Bank Negara Malaysia governor Datuk Muhammad Ibrahim. He said, ‘the market will decide.’ I think this is another no-nonsense and capable governor and I do hope that nothing changes when his contract is up for renewal in a few years’ time. REGARDLESS of the government of the day. I have summarised some of his views about the Ringgit today. Full article is in
themalaymail
 today. He shared that central banks will only intervene to contain excessive movements. Note, he did not say appreciation or depreciation. With large movements up and down every day, all businesses would be very worried. Even new investments would be scared to invest in Malaysia.

He shared that some of the bearish factors affecting the ringgit include weak export markets, low prices for Malaysia’s oil, gas and commodities, and concerns over a multi-billion dollar financial and political scandal at state fund 1Malaysia Development Berhad (1MDB). He summed it up by saying, “In the short-term, exchange rate movements could react to news headlines and market sentiment, instead of reflecting the underlying strength of the economy.” Most importantly, he shared what BNM should be focusing on. It is to ensure the
availability of ample reserves,

maintain strong economic fundamentals and manage exposure to external debt.

By the way, to anyone who believes ringgit will depreciate further,
property is not the best focus.
 A better focus may be on overseas blue chip stocks if you really believe ringgit will drop further. Properties are just too illiquid and we may not know if we are trapped during the process of buying or even selling. Due to the potential huge movements, we may still lose quite a lot because no one, I repeat, not even the most famous economists in the world could predict with any accuracy how the currency would move. Whichever country we love to invest, read more. Focus on all those same measurements that the economists are using to measure Malaysia today. Then decide. Happy reading.

written on 27 Sept 2016

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Impossible, how can Ringgit be Most Attractive?

This evening, 17th September, I read a shocking news. An international investment bank said Ringgit is the most attractive compared to all other emerging market peers. Sounds unbelievable? Well, their reasons are as follows. Morgan Stanley Investment Management predicts that the ringgit as well as rupiah will outperform peers despite both having dropped to their lowest levels in 17 years due to a slump in oil prices and the US’s continuous uncertainty on when is the best time to raise interest rate.

It’s managing director, Jens Nystedt said, “Malaysia is the cheapest from our medium-term foreign-exchange modeling in emerging markets, and Indonesia is second.”  He said that a Fed rate increase this year is already expected and further losses in the emerging-market exchange rate will be temporary since they have been declining since past year. Morgan Stanely Investment Management manages $403 billion at the end of June and it favours Malaysian sovereign debt. In actual numbers, the ringgit has fallen 18 percent within this year due to oil price and the allegations of corruptions against Prime Minister Najib Razak. This spurred outflows.

According to Nystedt, 32 percent of Malaysian debt are held by global investors. Malaysia’s local-currency bonds handed investors a 2.6 percent return this year according to indexes compiled by Bloomberg. He also said,

“In Malaysia the biggest risk that they have, in addition to political risk, is really the large ownership of the foreigners in the government bond market,” Nystedt said. “Given that we don’t expect a Taper Tantrum, we think we are being rewarded to take that risk at the moment.” Very briefly, Taper Tantrum refers to a situation where funds withdraw themselves from emerging markets due to Federal Reserve’s Quantitative Easing action. Read here:
Taper Tantrum
 Nystedt expected The Fed to only increase 25 basis points this year and gradually increasing it to 2.50 percent to 3 percent in 2018. Any increase may cause a short-term selloff but it is possible that emerging markets may stabilise after a day or two of adjustments.

I personally think this is a little complex for majority of everyone to understand fully. The summary is that ringgit is seen as attractive despite some risks. This is when compared to its peers in the emerging economies. This assessment is however only by one investment management company. Let’s listen to a few more, especially after the Fed has increased the rates by whatever basis points. For now, I am still viewing some secondary properties and waiting for some potential stock buys. Nothing too attractive yet. We shall see.

written on 17 Sept 2015

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Yes, Ringgit is very near to RM3.80 level

I think everyone knows about the Ringgit reaching new lows versus S$ and US$ recently. Yes, in fact it is very near to the days when it was pegged to the US$ at US$1 to RM3.80  I remembered it clearly because it was then that I went for my studies in Bristol, UK. Two weeks after arriving, the exchange rate went up to £1 to RM8! My girlfriend then and my wife today were so reluctant to spend our money then. At that time, everything was bad. The whole banking industry was shaky and Bank Negara Malaysia forced the mergers to happen. Smaller ones were bought over by bigger ones and out of the 54 banks, in the end, there were just 10.

Today, the Ringgit is again reaching the level of the pegging. Many said that perhaps Ringgit may be pegged again. I do not believe any pegging would happen unless the economy spins into negative territory. As long as the economy continue to march forward, even with a lower projected growth, there are no immediate dangers. Yes, Fitch said that they are looking at us negatively and for this, let’s wait for their meeting end of June 2015.

Many also argued that 1MDB would cause the collapse of the economy. Based on the size of 1MDB versus its assets, it will not but it will drag down the confidence level due to the many uncertainties surrounding the controversy.

US$ strengthening is also one major reason why Ringgit continue to decline but please note that Ringgit is actually doing fine versus AUD$ and even Japanese Yen and Euro. In other words, Ringgit’s value of today was NOT like 1998 when Ringgit fell versus the world!

Oh yeah, let’s not just read comments from a non-economist like me. I am not even a qualified Accountant. Haha.

According to Saktiandi Supaat, the head of foreign exchange research at Malayan Banking Bhd in Singapore, “The rebound of the ringgit yesterday was in line with the movement of other regional currencies, as the US dollar retreated… this is because the greenback in general had overshot its long-term value over the last few days.”

According to a very capable central bank governor, Tan Sri Dr Zeti Akhtar Aziz said that the ringgit is definitely not reflective of the fundamentals of the Malaysian economy. The weakness of the Ringgit is likely to be temporary and fundamentals would support it again once the global uncertainties subsided.

Yes, some analysts projected the Ringgit to fall even below the level that it was pegged to. However, until today, there are no analysts no matter from local or foreign institutions which had predicted the collapse of the economy and as at today, 12 June 2015, Malaysia’s sovereign ratings are all under the Investment category for all three international rating agencies. Quoting a famous term, ‘Stay Calm, Carry On.’ Just remember to ensure you have enough to last 6 months should you suddenly lose your job. Other than that, if you invest objectively, everything should be okay in the short term. Yes, I continue to queue for some stocks which I like. Happy reading.

written on 12 June 2015

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Ringgit recovering, I stopped writing

A few friends who have followed me for some time asked me why have I stopped writing about Ringgit these days. It’s already recovering, right? Well, last year, I did write a few articles about Ringgit. Read one here:
Summary Q2 2015:Malaysian economy, Ringgit and Zeti

or this:

1998 vs 2015, just numbers no rhetorics

In fact I wrote no less than 10 articles last year about the state of Ringgit, most of the time against many who were very sure Ringgit was about to collapse. One time, I wrote about the potential risk of quickly buying a property in Australia simply to hedge against the fall in Ringgit. Read here:
Hedging? Do it now, for future. property in Australia?

Buying a property would require considerable time while the currency can keep falling very fast or even rebound too.

Beginning 2016, I no longer need to write about Ringgit. Most of the articles about Ringgit today is positive, whether local or foreign ones. Note though that my position is that Ringgit remains volatile and open to external developments more than what’s happening within Malaysia. Many of these articles continue to relate Ringgit’s recovery solely to oil prices. It’s better to look back at “manufacturing” and “services”sector for Malaysia and then make your decision. I think it’s better than oil price or any other commodity prices for that matter.

Ringgit is undervalued based on its fundamentals, period. When we want to compare, look at all the same points from all the international rating agencies, then look at all the other nations whom we think so highly of. Oh yeah, for that one about household debt versus GDP,
Australia is at 123 percent today
. I think it’s doing okay? Greece defaulted last year. It’s household debt was just
63 percent vs GDP.

When the mortgage crisis hit the U.S. in 2008, the household debt to

GDP was at 91 percent. Today, it is nearly 80 percent.
Oh yeah,
UK is at over 86 percent currently.
 Hardly low by any country standards.
These numbers tell just one side of any story. Invest when we have read more. Also, when we buy overvalued, regardless of how the economy moves, we may still be in trouble. Last but not least, if we really intend to hedge against any potential depreciation of any currency, then buy good blue chip stocks in the countries we feel should do okay. NOT buy and keep their currency. Happy investing.

written on 24 Apr 2016

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BNM: Stabilising ringgit is priority and welcoming long-term investors

There is no need to read this particular article if you believe ringgit is dropping because the economy is in a crisis. We are in trade surplus while that other currency is SUFFERING from trade deficits. That is one reason why its new President will boost its economy soon. Anyway, back to ringgit. I seriously believe everyone should have their own set of beliefs. Just be reminded to act accordingly. However, if you like to learn a little about the ringgit from someone who is not from the politics circle, then this is for you. These are the comments by Bank Negara Malaysia’s governor Datuk Muhammad Ibrahim which was published in an article in
thestar.

He said that the main reason for the recent measures is to stabilise the ringgit. The full impact from the measures should be seen in mid-2017. To anyone who thinks this is capital control, he said, “However, these new measures are not capital control or fixing of the ringgit but to stabilise it and ensure liquidity in the market. We will always welcome long-term investors into our bond market and we must ensure that they are protected by stabilising our currency so that they can make profits.” In fact, residents with domestic ringgit borrowing were free to invest in foreign currency assets, both onshore and abroad, up to the prudential limit of RM50mil for corporates and RM1mil for individuals. Does not really sound like capital control… right? The next sentence showed by he is the governor and none of us are. He said, “We must not be fixated on any particular levels (of the ringgit). Once we have realigned the demand and supply for it be dictated by actual demand for the currency that is where the ringgit will stabilise. The key point is that ringgit must stabilise because it will let businesses to make the right decision.”

I personally believe ringgit will recover because exports are still growing. The current trade surpluses every month also meant that the ringgit would be in demand when the exporters convert their proceeds back into ringgit. Of course, I still hope Trump would carry out all his policies so that the Federal Reserve (Fed) can increase the interest rates and perhaps make ‘America great again.’ Oh yeah, if the Fed kept raising rates, I think most emerging countries’ currencies would suffer. Yeah, every time Fed is about to raise rates, the economies of all these countries would start becoming bad. Haha. Happy reading yeah fellow Malaysians.

written on 13 Jan 2017

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Ringgit strongest, comparatively. Malaysia is positive. Nomura disagrees.

Many months back, a colleague was telling another colleague that with the ringgit’s value which is continuously dropping, her online shopping was taking a big hit. Things were 40 percent more expensive. I told her that ringgit has actually dropped but it’s definitely nowhere near 40 percent. She said, ‘It may happen you know.’ Seriously, if it happens, both she and I would be out of job. No idea why she would want that anyway. Malaysia’s current investment grade rating by all the three international rating agencies would be gone. External investors would pull back and invest their money somewhere else. They need returns, not a 40 percent drop in the value of their investments. Fortunately for that friend and me, ringgit has been performing well this year. In fact, this was the headline by Bloomberg just days ago.
“The Ringgit is easily Asia’s strongest currency.”

Other stuffs from the Bloomberg’s article. Why has ringgit been recovering? The article quoted a few positives as follows. Exports are accelerating and GDP growth was 5.6 percent last quarter. FTSE-Bursa Malaysia hit its highest point in 2 years. This is what Schroder Investment Management Ltd’s Singapore-based fixed-income director Manu George said, “Key considerations are improving fiscal dynamics, dynamics around

central bank policy
, attractive economic policies, sensitivity to developed market and China developments.”
(Generally, he is positive with Malaysia)
It can’t be all good right? 🙂

Note that Nomura disagrees and its Southeast Asian equity strategist based in Singapore said, “I find it difficult to justify buying Malaysia’s genuine story while ignoring the risks on valuations and also the existing risk that the Malaysian market comes with.”
(He said the growth is GENUINE…. but he said that there are RISKS)
 He added, “The market probably goes up a bit more till the election, but what happens after it?”
(I think he believes election is the reason why things are looking up. Well, I am not so sure if all these new external investors were buying into Malaysia simply because of elections. Personally, I do not think it is this year. Nope, I have zero insider information)
Full article here yeah, from Bloomberg.

At this moment, these are my wishes. May contradict one another though, haha. BNM to maintain the OPR so that no one with loan exposure gets sudden surprises. Ringgit to appreciate but very very slowly. Oil price to go down very very slowly.

Oversupply of properties in the market starts getting cleared off.

We get more completion of the affordable homes. This should help stabilise the property prices further, especially for those below RM500,000 ones. Malaysians without their first homes yet get a breathing space to view, negotiate and buy a home sweet home. Externally? I hope the US economy continues to gain traction and their rates are up slowly (even if I think Mr. Trump disagrees with higher rates). China should have a soft-landing and the One Belt One Road initiative starts to change to higher gears. When these two largest economies move, I guess all of us should be okay. Too bad, I think Brexit will remain a messy issue, especially currently.
May ‘lost’ seats, may lose her post too but government may remain
 Last but not least, ASEAN, we shall grow together okay. Cheers.

written on 30 June 2017

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RInggit now at three-week high. So?

4th February 2015. Ringgit is up, well not just up. It has hit a three-week high. Okay, first of all this may mean nothing more than a one off gain due to the rebound in oil price as well as the rebounding stock market. Ringgit managed to claw its way up to RM3.5610 against the US Dollar from RM3.62 to 1 US Dollar last Friday. Can this last? Stop joking. As long as the overall sentiment remain negative on this side versus the US economy on the other side, of course this may not last. Oh yeah, reports after reports have been repeating the few words, ‘Ringgit is the second-worst performing Asian currency in 2015’. A reader said this yesterday, ‘If the Malaysian economy is doing well, then the RM should be going back to the RM3.20 to 1 US Dollar level.’ My reply, ‘No matter what the government or Bank Negara Malaysia does today, the sentiment will remain negative. Just have to let the market run its course. If we are fundamentally weak, the Ringgit will decline further, not keep its current level’.

Ringgit is also higher against the Singapore dollar, against the Yen, against the British Pound and even the Euro when compared to the last closing last Friday. Of course do not read too much into this. It does not mean all the other economies are doing worse than us. It meant only that for this one particular day, Ringgit happened to be looked upon as ‘better’ than them. Fundamentally, nothing has changed during the weekend holidays. One friend also posted something which was even supported by an online article. It said that currencies will decline because of the level of corruption in a country. Bad news is I think the level of corruption in Singapore is getting worse since it is depreciating too. The level of corruption in US meanwhile has declined so much that its currency is increasing and the level of corruption in Malaysia was lowest just over a year ago when the currency was very strong. No comment on the level of corruption in Malaysia versus even countries like Singapore which is said to be almost corruption free. 🙂

I think readers would have noticed that I do not really care too much about all these negative news about Ringgit. I also do not take too seriously news about certain developers launching huge projects and thus we should buy its stocks. I also do not believe GST is the major cause for any slowdown in property transactions for 2015 or how much GST is going to affect the prices, whether up or down. I believe however that everyone should always read more, understand more and make a decision based on what we believe in. Even if the one leading us is not blind, more often than not, they have their own agenda which may not be what we really want. Just read what REHDA says versus what the HBA would say versus what the customs department said about GST to what your neighbour is saying about GST. Trust good judgement. If it’s wrong, then it’s our fault. Just have to take the blame and perhaps restart. I do not believe personally that Ringgit would strengthen too much in 2015. US economy is still doing fine and the oil price would remain volatile and likely to stay low. Supply is still above demand and there’s no way demand can suddenly increase within a few months time. Thus for oil prices to rise, it has to be with the help of speculators. Happy reading.

written on 4 Feb 2015

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Ringgit to strengthen further in 2019. Good news yeah?

I do not think currency appreciation directly impacts the property investment within the Malaysian property market. It helps businesses with loans in US$ too because then repayment will be easier. A strong currency also provides a positive sentiment and I think that’s very much needed in a slow property market. Perhaps too many media outlets are writing too many negative news? What’s the direction of the ringgit in 2019? It
has depreciated by 2.9% versus the US$ as at 11th December 2019.
As per many media reports yesterday, it’s going to strengthen in 2019 mostly because of the US$ (no interest rate hike) and the oil price. (stable)

Article in TheSundaily.my
 MRR Consulting Sdn Bhd managing partner and investment advisor Ooi Kok Hwa expects the ringgit to strengthen because everyone’s expecting the United States Federal Reserve to maintain its interest rates this year. This will cause the US$ to weaken and help the ringgit to move up. He said, “Furthermore, the trend right now is that the renminbi is gaining momentum and will probably continue to appreciate, thus benefiting the ringgit, given the two currencies’ positive correlation.” Beyond the Fed, Ooi said the uptrend in global oil price was also expected to provide a boost for the local note. He said, “Oil price is currently on the path of recovery and should maintain within the range of US$50 (RM205)-US$60 (RM246) per barrel, with oil producers reaching a pact to reduce production.” However, he said that a firmer ringgit will pose a problem for Malaysian exporters as their US dollar-denominated revenue would be lower in ringgit terms. Thus for these exporters, they may need to hedge their currency exposure. Glove manufacturers are negatively affected as their locally produced goods become more expensive in the world market.
Article in TheSundaily.my

A stronger currency helps tremendously when Malaysians travel abroad, me included. Fundamentally, the currency should rise or fall due to trade and trade alone. The more competitive nations which are able to export more, their currencies should rise as the importing countries need to pay in the local currency of the exporting country. Countries which have deficits year after year, the currency should fall… Stop all these ‘expectations’ kind of currency manipulation. Technically, they are just speculative in nature and this will impact many smaller nations negatively.  Happy understanding and following. Yes, let’s have ringgit strengthening to RM3.90 to US$1 this year!

written on 14 Jan 2019

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Trade surplus should mean higher exports conversion versus imports

This is about our Ringgit. Yes, that currency which everyone talks about? Haha.  It is an update of what has happened to the ringgit based on Bank Negara Malaysia (BNM)’s measure to reduce ringgit volatility. Yes, this is definitely aimed at increasing the number of long term investors while keeping out short term speculators.  The full article in
TheStar is here
. The only two sentences that I would like everyone to note are as follows:

1.  “BNM data also indicates an improved balance between exports and imports foreign exchange flows, consistent with the trade surplus in the current account.”  (This is the main reason why BNM implemented these measures. Nothing to do with controls……………)

2. “For the months of December 2016 and January 2017, since the measures were introduced, exports conversion exceeded imports by USD372.9 million and USD741.3 million respectively.  (We have trade surplus, so of course the conversions from exports should exceed the imports. If this continues, then the foreign exchange should show positive increments as long as Malaysia maintains our trade surplus)

Oh yeah, the GDP for Q4 2016 was also announced. Here’s the full article in
TheStar.
Bank Negara said, “While the external environment may continue to remain challenging, the Malaysian economy will experience sustained growth with the primary driver being domestic demand.” Growth during the quarter was supported by the strong showing in the manufacturing and services sectors, while steady private spending helped to mitigate a decline in Government spending.

Lastly, this is what Warren Buffet says about an investor versus a non-investor.
“Calling someone who trades actively in the market an investor is like calling someone who repeatedly engages in one-night stands a romantic.”
I believe this is what BNM was trying to do as well. To attract investors.

Thanks for following.

written on 17 Feb 2017

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Ringgit is undervalued. I agree.

Today, a friend asked me what would happen if ringgit were to hit the US$1 to RM4 level. I said, it’s already above the psychological RM3,80 level many times. In the near term, I do not think there would be any drastic actions being taken. There’s just nothing to be done when it’s pure negative sentiment than the “about to become Greece fundamental”. Oh yeah, until today, not even ONE economist has predicted that Malaysia will fall into a recession or crisis. Of course, this is barring any unforeseen circumstances externally. I believe Ringgit is undervalued based on all the current existing fundamentals. Economic numbers, reserve numbers and even the banking industry strengths. Read here:
Healthiest Malaysian banks since 1998. Wow

This is especially when compared to the fundamental of the country in 1997 versus today. Let’s see what the people are saying about Ringgit lately. Yes, all of them are far more qualified and have access to more numbers than me.

Tan Sri Zeti Akhtar Aziz, governor of central bank Bank Negara Malaysia has asserted a few times that the Malaysia ringgit was undervalued and its current value does not reflect the country’s fundamental.

Financial Markets Association of Malaysia president Datuk Lee Kok Kwan: “Malaysia has little reliance on foreign currency funding, has high domestic savings, ample liquidity, well-capitalised banks, corporates are making profits, current and trade accounts in surplus and a positive GDP growth of around 5%. The fundamentals for Malaysia stack up well globally and with regional peers, in which the ringgit has weakened considerably.”

Forex Time’s Chief Market Analyst, Jameel Ahmad in an interview with Bloomberg TV said that the Ringgit is grossly ‘undervalued’ and he expects the Ringgit to stabilize and eventually gain strength in the near future.

CIMB Bank group treasurer Chu Kok Wei said that the RM3.80 level is just a number, more psychological than material, and that has to do more with the dollar’s strength instead of Malaysia’s fundamentals. “The ringgit at current levels is attractive in the medium-term and foreign holdings of Malaysian government debt is stable and there has been an uptick recently.”

Affin Hwang Investment Bank vice-president and head of retail research Datuk Dr Nazri Khan Adam Khan: “It is likely that new investors will grab the temporary opportunity in the
undervalued weaker ringgit as it offered a cheap entrance point to the medium to long-term FDI and bond market.
”

Maybank Investment Bank fixed-income analyst Winson Phoon: “Even when Fitch Ratings was threatening to downgrade, long-term money investors bought MGS.” He believes a fair value of Ringgit should be RM3.30 to the dollar.

Believe what you believe because I also believe what I believe. If you seriously believe Malaysia is heading towards bankruptcy, take the necessary actions. For example, selling all Malaysian related investments, move it into a safer market and come back when the prices drop steeply as per your expectations. If however you think it is a matter of time that the Ringgit regains its strength and with it a better outlook for the economy, then continue to accumulate undervalued stocks. A slowing property market is also a great place for negotiations too. Happy deciding.

written on 16 July 2015

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Ringgit: Happy, yes. Lasting, maybe. Undervalued, still is.

I would like to reiterate, the Malaysian economy has not suddenly improved so much that the Ringgit appreciated so much and reached the highest level against Singapore dollar for past 6 months or highest level in 3 months versus US$. This was my same argument when Ringgit kept falling. The economy has not deteriorated so much that it deserved a fall of over 20 percent within one year. To be frank, any currency falling 20 percent within one year should at least already fall into a crisis, right? Else, why would it depreciate so much? Never mind, believe whatever we want believe. Just remember to take appropriate actions.

Some other comments about Ringgit below, from real experts in the field. Hong Leong Bank’s Head of Fixed Income & Economic Research, Choong Yin Pheng said, “It’s a sign the market has well received the recalibrated budget, which was more realistic and apt to the current scenario.”

Skandinaviska Enskilda Banken AB. : “The ringgit may outperform Asia emerging markets in 2016 as Brent starts to stabilise and given the currency’s 19% loss last year was perhaps a bit overdone.”

Sean Yokota, Singapore-based head of Asia strategy at SEB: “Oil prices are higher and that’s definitely helping the ringgit and the budget (recalibrated) was seen as pretty positive.”

United Overseas Bank (Malaysia) Bhd (UOB Malaysia) believes the ringgit will strengthen in the second half of the year.

Christopher Wong, senior FX analyst for Maybank in Singapore: “We expect continued SGD weakness amid sluggish external demand and ongoing domestic restructuring efforts to raise productivity. By contrast, views on MYR are positive due to relative stability in oil prices and resilient domestic demand. These are supporting sentiment.”

Yes, comments are generally positive during positive periods. When ringgit starts falling again, I will update with all the negative comments too. Just have to see if what Bloomberg’s survey of ringgit would come true. In a poll by Bloomberg, the ringgit is forecasted to go to the level of US1 to RM4.40 by year end. Happy getting the right investment exposure to maximise returns during this volatile market situation of oil prices.

written on 30 Jan 2016

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Ringgit versus major currencies except that ‘one’

All images latest as at 26th September 2022. Source: google.com

Take action(s) based on what you believe yeah

Some say we are heading for a crisis soon because Ringgit is depreciating against the US$. If you believe this, then please take appropriate actions yeah. Save as much money as you can and then grab all the cheap assets which will happen during a crisis. In 1998 for example, property prices fell by double digits. So, if you think so, STOP going to some fancy cafe and waste your ‘bullets.’ Be ready….

Else read on for some more news of Ringgit versus other major currencies too.

Happy investing and reading. If you only read the Facebook postings, maybe you need to realise that Facebook shows you similar news so that you will click to read them. Period.

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PRESS RELEASE   Rio City Interchange at Bandar Puteri Puchong is now open

The official opening of Rio City Interchange at Bandar Puteri Puchong marks the completion of the infrastructure upgrading works and expansion of Lebuh Puteri at Bandar Puteri Puchong. This RM90 million project, which is wholly-funded by IOI Properties Group Berhad (“IOIPG”), is to improve traffic flow and connectivity of Bandar Puteri Puchong.

The event was officiated by Selangor State Exco Yang Berhormat Tuan Ng Sze Han, Timbalan Datuk Bandar Subang Jaya Tn. Hj. Mohd Zulkurnain, IOIPG Chief Executive Officer Dato’ Voon Tin Yow, IOIPG Chief Operating Officer Teh Chin Guan and MBSJ Councillor George Yap Kok Weng.

Located at the intersection of Lebuh Puteri and Persiaran Puteri in front of IOI Galleria @ Puchong, the Rio City Interchange connects to the heart the 1,000-acre Bandar Puteri Puchong township with approximately over 30,000 households and business owners, four blocks of office towers at Puchong Financial Corporate Centre, IOI Rio (a smart next-gen mixed development) and Four Points by Sheraton Puchong.

Since 2016, upgrading and construction works on the interchange have been completed in two phases. The improved infrastructure is key to providing greater accessibility and connectivity, which enables Bandar Puteri Puchong to continue to thrive. The upgrading was undertaken by IOIPG despite having handed over the infrastructure to the authorities.

In the first phase, upgrading works to road infrastructure at Lebuh Puteri began from August
2016 to September 2019 and included the following:

• Construction of a flyover from LDP to Lebuh Puteri Puchong to improve connectivity towards Bandar Puteri Puchong.

• Construction of a 35-metre covered pedestrian bridge and a covered walkway to improve accessibility for pedestrians travelling between Puchong Financial Corporate Centre (PFCC) and LRT Perindustrian Puchong.

For the second phase, upgrading works continued at Lebuh Puteri from February 2019 to April 2022, which included the following:

• Construction of a dedicated underpass for direct access into IOI Rio to ease the burden of road traffic at Lebuh Puteri.

• Construction of an additional underpass (80 meters in length) beneath Rio City Interchange to smoothen the flow of traffic within Bandar Puteri Puchong.

• Other infrastructure upgrades include the construction of a pedestrian linked bridge from the commercial area of The Cube to Rio City, pedestrian crossing with signal lights, upgrading of street lights to LED lights and new walkways.

Apart from the upgrading of infrastructure, IOIPG also enhanced the landscaping in the area. “In line with our vision of being a Trusted. brand, IOIPG is investing in building sustainable communities. This infrastructure upgrading project further demonstrates our commitment to our vision,” said IOIPG Chief Executive Officer Dato’ Voon Tin Yow.

— end of press release —

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Rising demand means rising home prices. Caused by insufficient supply?

Rising demand means supply must rise quickly to meet the demand. Else, the prices would rise to cut off some of the demand and sell only to the ones who could afford to pay higher.

Demand for a smartphone or a car?

When a new smartphone model is launched and the demand for it was better than anticipated, the manufacturer of the phone could probably be able to ramp up production and deliver more supply within 2 weeks depending on the availability of parts and the logistics. If it is a new car model, it may take weeks to produce and deliver it all over the country but generally what would happen is that the supply will start to cater to the demand within weeks or at max, probably months. What about the demand and supply for properties then?

Demand for property?
(causing rising home prices?)

This is the tricky part. When the demand in the property market goes up, developer could ONLY be able to deliver homes years later. Of course, when the demand slows, those supply which was already halfway being built would still have to be completed even if it’s unsold yet. This is why overhang property happen after every booming property market. What will happen next is that developers start to be very careful with new launches and many may choose to sell whatever they have versus buying more land and building ever more units.

Article in nst.com.my
  China’s home prices grew at the fastest pace in six months in February 2021. One reason cited was because of the the lower supply of projects during a holiday season aided by the fear of missing out among buyers. National Bureau of Statistics figures showed that new home prices in 70 major cities, excluding state-subsidized housing, rose 0.36 per cent in February 2021 versus January 2021.

In 29 key cities monitored by China Real Estate Information Corp., new-home sales more than tripled in February from a year earlier, when the health crisis seized up the economy. New-home supply in those cities plunged 63 per cent by area in February from January, it said. The article has a lot more information. Do read it here:
Article in nst.com.my

Speculation may also be at play, does not necessarily due to demand and supply

If we look at the property transactions, it’s super important to understand the composition of those transactions. Are those transactions concentrated only among the typical investment type of properties? Or are those transactions for homes which are purchased by families? Are the purchases because many of the purchases which should have happened earlier did not happen because of restrictions? For example, a nationwide lockdown due to the COVID-19 pandemic?

Or are the purchases because everyone believe that they buy today and they could sell tomorrow for higher prices? Just need to continue to look at the government’s actions as well. For example, we have read recently that the Singaporean government felt that low interest rates may be distorting the property demand. Earlier article here:
High interest with property market because of low interest rate is a big issue

Do not read too much about China’s property market
.

Truth is, when we read a little more about the property market in China, we would realise that there remains many cities where the property demand was too speculative. This has perhaps changed for the better but even if it has changed, our property investment decision here in Malaysia must be based on what we really understand about our property market. An overpriced property is STILL overpriced and if we bought, then we better hope that the rising tide will carry all boats. Else, it’s going to be hanging on for a long time to come.

Staying focused remains key

Overhang property is meanwhile NOT a reason to stop buying too. This is because not many would want to buy that overhang property which has been hanging around for years. Earlier article here:
How many of us are looking to buy overhang properties in 2021?
  Happy deciding but only after a thorough evaluation yeah. This is a hundreds of thousands decision. Risky and rewarding at the same time.

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Riskier to open for dine-in. Actually, quite true.

When dine-in was not allowed during the start of Covid-19 lockdown, many restaurants had to quickly change the way they serve their customers. Today, many which are still open are the ones who have embraced takeaways to replace dine-in. Thus, when dine-in was allowed
(click here to read earlier article)
 when the total vaccinations hit 50% for Malaysia, many restaurants have decided to remain closed.

By the way, it makes perfect financial sense too because fully vaccinated adults DO NOT mean they could not infect others with Covid-19. When there is an outbreak in that particular restaurant, then all the workers would have to undergo swab test (this is cost) and the restaurant would have to be sanitized fully (this is cost too) and it will be closed for 14 days (this is a huge loss, not cost alone).

Thus, with all these potential unforeseen circumstances, it may be better to continue with takeaways for now. Some have decided just that.

Article in nst.com.my
  Checks by the
New Straits Times
 at the commercial hub of Jalan Bukit Bintang, Jalan Tun H.S. Lee, Jalan Ipoh and Jalan Masjid India here found that many restaurants have not even set up tables and chairs in their dining areas, and many were still allowing only takeaways.

One such restaurant was the popular Nasi Ayam Hainan Chee Ming. Its owner Yeok Ah Yeong said, “We have regular customers, so we are surviving on takeaways. My concern is that, if a case is recorded when we allow dining, we might have to close down our restaurant for two weeks.

Reto Sandwich restaurant staff Omran Kanaan said they were not ready to welcome diners because some of his colleagues were not fully vaccinated. Please do read the article in full here:
Article in nst.com.my

Who can dine-in yeah?

Currently, everyone who has been fully vaccinated would enjoy the privilege of dine-in. This is allowed for states under Phase 1 and above of the National Recovery Plan (NRP). Of course not EMCO lah.

As for how to determine is a person is fully vaccinated, it is 14 days AFTER receiving the second dose of a two-dose vaccine (Pfizer, AstraZeneca or Sinovac) or 28 days after a single-dose vaccine (Johnson & Johnson and CanSino).

There is really no need to risk more than necessary

A friend says that no matter what happens, she will stay home and will not go anywhere unnecessarily. I told her that not everyone have such a privilege. However she is right, minimising going out is definitely important today.

Full vaccinations do not mean no new infections. This is why it is still better to stay home unless it is really necessary. We can slowly return to normal yeah, even if Covid-19 cases will continue to happen.  Another news which shows light at the end of a long tunnel is below:

Article in theedgemarkets.com
  The Tengku Ampuan Rahimah Hospital in (HTAR)
Klang
 has decided to return the 80 units of the oxygen concentrator devices that were loaned by the Malaysia Agro Exposition Park Serdang (MAEPS) COVID-19 Quarantine and Treatment Centre (PKRC). This is because of the declining number of COVID-19 patients at the hospital. Full article here:
Article in theedgemarkets.com

Keep telling everyone to go for their vaccinations yeah.  Thanks.

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Make sure our risks are calculated ones, minimise losses if it happens

I attended a Communication and Leadership retreat recently up in the beautiful Penang Hill. Yes, the cable car is now faster than the old and could carry more! The parking was grossly expensive but at least now we have a proper place to park instead of along the road haphazardly. I recommend strongly that any visitor to Penang should take a ride and enjoy the spectacular view. Else, please do not say that you have been to Penang. Yes, I think I am qualified to say this as I have stayed in Penang for 15 years before moving to KL 3 years ago. One major topic shared during the retreat was on how to manage change and how success in future depends on what we do or did not do today.

This brings us to our main topic for today, handling potential bad happenings. One of the speakers shared about all the potential bad things that could happen and what we could do in advance to minimise the potential destruction. Although I was listening intently, I could not help but wondering what would have happened if my first property was a wrong decision. Then, I got my answer. I think I managed it, together with my wife.

Assuming that first property I bought was not loved by many and that the prices did not change much, what was my loss? Actually, it was manageable because without that first property, I would have needed to continue renting a place anyway. My rental then was RM550. My mortgage repayment was RM750 per month. Including the maintenance and sinking fund, it should come to around RM900. using extremely simple calculation, my ‘loss’ was merely RM350 per month. I could handle this loss! That’s why my personal opinion has always been to start the first property buying for our own home. In this way, we would already be taking a calculated risk and minimised that potential of daily headaches when we could not rent it out or sell it because of  soft market conditions like…. today.

It’s definitely applicable to every investment that we do and yes, this is also similar to the question many trainers have been sharing. “What’s the worst that could happen?” If we are able to answer calmly, then I think we have just passed the ‘calculated risk’ stage. However, if the answer is extremely negative and there’s the potential for us to lose everything or even set us back many investment years, then a second opinion would be extremely helpful. Make sure our
risks could be calculated
. This big picture tend to help us decide better as well as minimise the potential losses if it do happen. Cheers.

written on 4 Sept 2016

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Risky Investment. Even if we get the promised returns, this may still be risky.

What is a risky investment?

How many of us believe if a bank promise us they will pay us a FD rate of 2%, they will actually pay us 2%? I do. In fact if the risk assessment here is whether the bank pays us or not pay us, the answer is a simple one. There is really virtually no risk at all. The bank will definitely pay us.

Let’s look at an actual definition of risk in financial terms yeah.

What is Risk? According
to Investopedia, this is the definition of, ‘What Is Risk?’

Risk is defined in financial terms as the chance that an outcome or investment’s actual gains will differ from an expected outcome or return. Risk includes the possibility of losing some or all of an original investment.

Risk is beyond whether we will get / not get the promised return yeah

After misses as well as gains in all my investments throughout the last 18 years, I personally believe we need to move beyond the high risk, high return and low risk, low return financial thoughts. Look back at the Fixed Deposit example above. If the FD rate is 2%, would we face any risk at all that the bank will not pay us this return? Of course not. However, does this mean FD has NO RISK then? In financial term, it’s virtually no risk.

In real life however, I give you two important reasons why FD will now be ‘risky’ moving forward.

#1 FD Rate is really, really low and it is expected to be low for a long time to come.
There were times when FD rates were way higher. Maybe 2 times, 3 times higher than what we have today. If FD rate is 7%, it meant that what we have in the bank will double every 10 years! Assuming we work from 25 to 55, that’s 30 years and there’s a chance your money will triple! Or at least double. Not today. FD rate is 2% today. Your money will only double in 36 years. In other words, by the time you stop working, your money has not doubled…yet.

#2  It’s worst than not having the returns after 12 months.
  If we bought a stock with high risk and it has a potential high return, we may lose a lot or we may gain a lot within a period of time. Let’s say it is 12 months. This meant that in 12 months, if we lost a lot, then we can start to think of ways to restart. Unless of course we put in all our savings, else, very soon, we can restart. Now imagine if we did not do anything to our money and everything was in FD until they day we retire… There is no way to restart. By then, we could only try to minimise our expenses instead.

Please understand that risk is not just about returns anymore

With a low interest rate regime and expectations that this will continue (if we refer to all the advanced economies for some clues), riskiness moving forward is really about earning too low interest for too long a time. This is the risk which we must also understand moving forward. If we did nothing and everything seemed safe and we continue to earn low returns year after year, that would be the riskiest of all. Happy understanding and all the best in trying to get higher returns year after year.

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Risky to buy or Risky Not to buy.

I speak for myself only yeah. Let me explain why ‘risky to buy’. Today, I seriously do believe property prices has risen much faster than the salary growth due to the periods of 2009 till 2012. There were still good condos, in decent areas and a size of 1,200sf for less than RM250,000 in 2008 in the Penang island. Today, there are none at RM550,000 and below except if you found them in auctions. Today, buyers would have to fork out nothing less than RM650,000 for a similar property in the same area. So, if buyers were to buy today, don’t you think it is very risky? Prices have gone up so much, but salary never followed. So many negative reports about middle class being squeezed and that lives are so tough that majority of these middle classes could no longer live a normal life. There has also been bubble reports, about the extremely high household debt here in Malaysia which is very dangerous. Most recently, it was reported that foreign funds sold lots of shares in the Bursa Malaysia. They are exiting. So, if you don’t think it is risky to buy, I tell you it is risky to buy, now.

How about risky not to buy? Please tell me, how fast can your money grow via another investment which is safe and steady? FD? If you are okay, then why not. However, the potential risk is, inflation may be rising faster. Unit Trusts? You need to decide on aggressive or safe. If aggressive, most of the time it’s fully equity. You may win big, 10% per year every year for the next 20 years. If you think that’s a lot, well, you also have to know what’s the principal you are starting with and the quantum it is increasing in. Assuming you save RM500 per month, then the amount at the end of 20 years is not likely to give you heart attack. Seriously, not even a condo based on today’s price. Oh yeah, the likelihood of that? Not high. Bond fund? The returns are almost similar like your FD. Buying commodity? Buying Gold? Buying a palm oil estate? Let’s stop joking, majority of these options has too little returns or high returns but also high risk. In other words, you risk being poor if you buy nothing for the next 20 years or you risk losing it all because even oil prices have ups and downs and no one knows if you can withstand the lows and take advantage of the highs. 🙂

Suddenly, buying a good property at a not too bad location does not sound so bad after all. The above is mostly applicable to only buying your first home. Secondly no matter how much you love property, never put all your investments into just property. Consider different alternatives too to diversify your risks. Note, it’s still very risky to buy, as per what I mentioned above. Okay, better make your decision yourself. No rights, no wrongs because you are the one deciding the path to take. Remember, if you do not know the direction that you are going, it does not matter which road you take. 🙂

written on 24 Sept 2014

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Runnymede group’s Ritz-Carlton Seafront Hotel in UNESCO Penang Malaysia

Press Release:
RUNNYMEDE GROUP SIGNS MOU WITH RITZ-CARLTON FOR SEAFRONT HOTEL IN UNESCO PENANG, MALAYSIA

Niche property developer Runnymede Group of Companies (Runnymede Group) has signed a landmark MOU with Ritz-Carlton, the famed luxury and lifestyle hotel and resort brand, for the management of a luxury hotel and residency units within the Runnymede Place development in Penang, Malaysia.

This nearly five-acre seafront development is located along the vibrant and historic Jalan Sultan Ahmad Shah (aka Northam Road) nestled along Penang’s famous Millionaire’s Row. It is adjacent to the Citibank Building and is just a block away from the E&O Hotel in the prime business district of Georgetown.

Scheduled to open in 2026, the luxury seafront hotel will feature 133 rooms within a 48-storey tower and 18 suites for the historical 3-storey Runnymede heritage hotel building. There will also be a mixed development tower comprising luxury condominiums, an office block and retail units located next to the hotel.

Runnymede Place, with its landmark waterfront development designed by Kerry Hill Architects of Australia, is set to become an iconic landmark in Penang. The late famed architect, Kerry Hill, was personally involved with the planning and design of the entire development. Hill’s enduring architectural legacy is spread throughout Asia, Australia, Europe and China. Among Hill’s accomplishments are the Aga Khan award for the Datai Langkawi Hotel and other awards for luxury resort hotels such as the brand Aman in New Delhi, Tokyo and Shanghai, plus the Lalu Sun Moon Lake in Taiwan and the Desert Palm in Dubai. He was awarded the “Australian Institute of Architects’ Gold Medal” in 2006 and also won the “Best Housing Design” award at the World Architecture Festival in 2012 for Martin No.38, a residential project in Singapore.

Established in 1994, Runnymede Group is well-known for its diverse development portfolio in Penang, Kuala Lumpur and Western Australia. The company’s impressive track record coupled with its financial strength and management expertise has allowed it to become a key player in the highly competitive property development industry.

Runnymede Group has successfully completed several notable developments in Penang, including the KWSP building situated on a two-acre parcel next to Runnymede Place; a military complex; and luxury bungalows as well as courtyard homes as part of The Sanctuary development. o It has also developed a retail centre in Kota Damansara leased on a long-term basis to GCH Retail Sdn Bhd, a subsidiary of the Dairy Farm Group-UK, which is listed on both the Hong Kong Stock Exchange and the Stock Exchange of Singapore.

The group’s ongoing projects include The Sanctuary’s Triuni Residences condominiums; a mixed development with service apartments in Ampang; Rossmoyne Residences private villas along the Canning River and the Margaret River Resort – both in Western Australia.

— end of press release —

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River of Life (ROL), Klang. RM4 billion land sale.

Would you like to enjoy a cup of premium coffee right beside the Klang river with your loved ones? How about bringing some of your overseas colleagues for Happy Hour right beside the Gombak rivers? There’s no need to show me your face. I know, I have the same idea. Answer is ‘of course not.’ Nevertheless, as they say, never say never because if everything that is being planned could come true, one day in the distant future this may come true. There’s no need to look too far. Malacca river is one such project which can be said to be quite successful. I have even taken my breakfast with my family on one of those shops which is fronting the Malacca river. No worries, everything went well and there were no foul smell or dirty plastic bags floating around etc. However, the Klang and Gombak rivers are many times longer than the Malacca river.

As per a local English daily, the River of Life (ROL) will have a finalised project study soon. The goal is to drive towards economic investments into the areas surrounding the river corridor once the river cleaning and beautification process is done. With this study, value of the land as well as how best to use the lands would be submitted to the government. Around the ROL, there were 108 lots identified with a potential value of RM4 billion. These would most probably be sold once the river clean up has been done. Studies have shown that land value around rivers would appreciate once the rivers are rehabilitated. The sale of all these land would help ROL to recoup the cost of cleaning them. Let’s hope they have plans for maintenance too because without the maintenance mechanism, very soon it will be back to square one.

ROL began in 2012 and the river quality was supposed to be raised from  Class III and Class IV (not suitable for body contact) to Class IIB (suitable for body contact and recreational usage) by year 2020. 110km in total length and it covers Sungai Kling from its upstream until its confluence with Sungai Kerayong, as well as its tributaries, the Gombak, Batu, Bunus, Jinjang and Kerayong rivers. It’s part of the government’s Economic Transformation Programme under the Greater Kuala Lumpur plan. After the cleaning, the beautification part will include 11 spots. They are Titiwangsa, Pekeliling, PWTC, Sime Darby loop, Dang Wangi, Raja Laut, Masjid Jamek, Railway Station, Brickfields, KL Sentral and Seputeh.

Though I am skeptical because of the size of the project, I would like to be optimistic that this will come to fruition in the near future. I have been to Holland, Singapore, Japan and many other countries and have seen how their rivers are clean and there are lots of economic activities right around them. Awaiting that one day when I have a cup of freshly brewed coffee and a croissant with butter and kaya. Haha. Yes, western plus Malaysian. Happy anticipating.

written on 2 March 2015

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Some news about the RM4.4 billion River of Life

Anyone who has been to Singapore should have been to Clarke Quay or Boat Quay. I have and I like it. Enjoying some finger food beside the river. Shopping in some of the small retail shops dotted along the riverside. Chit-chatting with friends or even a date with someone special. Yes, the river flowing right next to both the quays is a clean and odourless one. Except for drowning, it may still be safe to fall into the river. What about doing the same thing in Kuala Lumpur? The Klang and the Gombak rivers? There’s no need to feel so negative. Some negativity is okay, for now. Hopefully, we get to do something similar in the future if not near future.

I wrote about this quite
some time back
 and has not been following it but there was one article recently about it.
Read here.
Ekovest Berhad which is now the new owner of the project delivery partner for the RM4.4bil River of Life (RoL) project in Kuala Lumpur said that it had been awarded two new packages (contracts) as well as the contract to build an interceptor system. An interceptor system is expected to help making the river cleaner as it will stop unwanted rubbish from flowing along the whole river. This is expected to help improve water quality. The works would take 2.5 years to complete. Before anyone starts to say why is it taking so long, I think it’s good to google and understand a bit on river rehabilitation. It does take by far longer than 2.5 years.

Yes, if all our rivers are clean, even those properties next to it or with a view of it may appreciate too. No, please do not start buying them now. No one can predict the future. Perhaps the more important question should be when parts of the rivers are really clean enough for some of these potential enjoyment, how LONG would it be clean enough? Can we really have strict laws and prosecution on anyone or any company that pollutes it now and in future? As they say, when the rubbish throwing stops, the rehabilitation can be easier too. I really hope so too. Maybe we should do a kopiandproperty.com session in some parts of this ROL project. Show some support. Happy following.

written on 24 Oct 2016

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Renting news: Riyadh versus Dubai for the expats

Learning from my friend who has been an expat for over 10 years in the Middle East

During the recent Chinese New Year, I visited my primary schoolmate. Yes, based on number of years, we have known one another for nothing less than 35 years. All these years, I have always known him as an expat working in United Arab Emirates (UAE) and he has worked in both Dubai and Abu Dhabi too. Many years ago, he also said that Dubai is an amazingly cosmopolitan city and that I should definitely visit him there.

In my recent visit just two months back, I learnt that he’s now working from Malaysia and travelling to Riyadh once every month. He is now an expat with his employer based in Riyadh. He used to have a property in Dubai but I did not ask if he had sold his property after he moved to Riyadh. He told me that Riyadh is now becoming more open but for an expat, there are certainly fewer things to do, not to mention fewer expat friends too.

Nevertheless, when we talk about shopping malls for example, Riyadh has more and more of it these days but is still less vibrant than Dubai in comparison. Then, today I read about this news about Riyadh and Dubai. What a coincidence. Let’s read a little about that news.

Article in themalaysianreserve.com
   There is now a change in Riyadh, the Saudi capital. There are now more expats who are there with their families. There is now a restriction which states that all state entities must not do business with international companies that do not have their regional HQs in Saudi by January 2024.

These new restriction is part of Saudi Crown Prince Mohammed bin Salman’s ambition to open the country to international markets, putting the capital among the world’s
10 largest city economies
 and doubling its population to at least 15 million by 2030 — despite many traditional barriers related to the kingdom’s strict interpretation of Islamic law.

As of end 2022, almost 80 companies have applied for licenses to move their headquarters to Riyadh, Saudi Investment Minister Khalid Al-Falih said in a
recent interview
, adding the city would become “the grand capital of the Middle East, politically and economically.”

Much-awaited masterplan for Riyadh’s expansion has been delayed multiple times. A metro system, which was set to be completed by 2019, has yet to open.

There is a housing deficit in Riyadh. Annual payments for a two-bedroom apartment in one of Riyadh’s better neighborhoods has gone up by almost 12% over the past year to about SAR 181,000 ($48,260), according to Faisal Durrani, partner and head of Middle East research at Knight Frank, a global real-estate brokerage and consultancy firm.

Employees moving to Riyadh from Dubai could still get pay raises of 20%-25%. The article is a comprehensive one with a lot of details and examples. Do read it here:
Article in themalaysianreserve.com

Did you notice the annual yearly rental for a two-bedroom apartment?

The rental per annum is US$48,260 (RM212,793) for a 2-bedroom apartment in one of Riyadh’s better neighbourhoods. Rental per month is thus RM212,793 divided by 12 and that’s RM17,732 per month. This is certainly not a low number and Riyadh is only starting to  welcome more expats.In other words, it’s either an increase in the supply of homes facoured by expats quickly or else, the rental rates would continue to move upwards faster.

As the number is already very high in comparison to renting a 2-bedroom condo in Mont Kiara here in Malaysia, the disparity would just become bigger. With the current push from Riyadh, I do think the number of expats based there will increase much faster than the rate of increase for expats here in Malaysia.  Just as an example for rental of a 2-bedroom condo. Source: propertyguru.com.my

Malaysia is extremely loved by expats too

It’s a top Global City for Expats. Do look at the ranking below. This is as at 2022. Malaysia is ahead of Dubai too. For a better understanding,
Preply’s global index
 has ranked 60 of the most popular destinations to find the top cities for expats in 2022 based on 11 relevant relocation metrics.

Image source:
https://www.humanresourcesonline.net/kuala-lumpur-ranks-first-among-top-20-cities-globally-for-expats

In case anyone thinking of visiting Riyadh soon, here’s the typical flight ticket price via Malaysia Airlines. (MAS)

Happy visiting Riyadh or Dubai or Abu Dhabi yeah.

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RM1.1 million per car park space is a good business decision, maybe.

RM1.1 million per car park is a good business decision. Nope this car park is NOT in Hong Kong.  The Hong Kong one is a lot more expensive yeah. Earlier article here. Do not be surprised with the price of one car park yeah.
When car parks can be bought just like a home

Closer to home, car parks are bought not one by one but one whole building. This is in Singapore where less than 10% of the people owns a car. Owning a car is extremely expensive and even the parking itself would be super expensive yeah. This is why it’s really possible to get a loan, buy a car park and earn yields from the car park fees versus the loan repayment every month.

Article in asiaone.com
  In Singapore, there are few strata-titled car parks in the country and it’s believed the last of them were built around the 1980s. Three such such car parks have been sold since 2020.

Holland Road Shopping Centre (47 lots at $17.3 million, $360,000 (RM1.1 million) per car park lot)
Bukit Timah Shopping Centre (381 lots at $16.2 million)
Parklane Shopping Mall (219 lots at $16.1 million)

Report says that The Holland Road Shopping Centre car park was purchased by a family office from Hong Kong. It was also said that the yields for car parks are comparable to most commercial properties, ranging between four to five per cent. The article is a comprehensive one and there are a lot more details about car parks in Singapore.
Article in asiaone.com

How does the yield for car park work anyway?

First of all, no one buys one car park. We are not in Hong Kong. Assuming one whole car park was bought and the price per car park is RM200,000.

Briefly, if one were to buy a car park for RM200,000 and could get a loan for it over 25 years, then the repayment per month may be as follows: Calculator image from
calculator.com.my

Thus, as long as the car park would earn a net income of RM1,000 or higher per month, then there’s a chance that the yield could be positive. How does one car park earns RM1,000 per month?

If we assume it’s RM6 per hour and the car park is utilised for 6 hours daily, that’s RM36 per day. Over a period of one month, that’s RM1,080. Usually, weekends would be busier but it’s okay, we calculate an average of 6 hours per day.

This is because all other maintenance costs are for the whole building and not just for that one car park space.  This is why it’s really possible to pay an average of RM200,000 per car park and could still get a positive yield.

Nope, I do not have the funds nor the thought to buy one whole car park. Haha. It’s good to to keep abreast of what’s happening to the real estate market which definitely includes car parks too.

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