Britain to join CPTPP. Removal of 95% tariffs between member countries.

In case everyone needs to know, Britain is no longer part of the European Union trading pact. So, it has to find new trading partners for its economy to continue growing via trading partnerships. By the way, the economy has to also grow if the property market is to grow in the near future yeah.  Happy knowing that Britain is taking proactive steps to join CPTPP.

Article in thestar.com.my
  Members of a trans-Pacific trade pact have agreed that Britain can proceed with its bid to join the group.  Under the terms of the pact, known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), members Japan, Canada, Australia, Vietnam, New Zealand, Singapore, Mexico, Peru, Brunei, Chile and Malaysia remove 95% of tariffs between them.

Japan is head of the accessions working group. It shared that Britain will be expected to submit its market access offer, such as on tariffs, to members within the next 30 days. It said, “The CPTPP members remain committed to upholding the high standard rules and market access throughout the accession process.” Here are more details:
Article in thestar.com.my

Win-Win for both Britain and CPTPP

Good news for Britain (5th largest economy in the world) as it bids to join the  Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). CPTPP includes the 3rd, 9th, 13th, 15th largest economy in the world, Japan, Canada, Australia and Mexico respectively too.
Here are the list of the top 25 largest economies in the world too for reference.

The more we share, the faster we grow as well. With more trades, more will also be travelling between the countries. Not many negotiations would be done just via zoom yeah. Let’s get real. Signing tens of millions worth of deals without even knowing if the factory producing those goods are actually existing or not is not a clever way to do business. Cheers and welcome.

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Bromelia landed homes 90 percent sold for Phase 1

Press release:
Bromelia landed homes 90% sold out for Phase 1 launch

9 December 2020, Selangor:
 Bukit Hitam Development Sdn Bhd (“BHD”), the property division of AYER Holdings Berhad launched the Bromelia phase one landed homes at Bukit Puchong on 8 December 2020.

Despite the challenging market arising from the Covid-19 pandemic, 90% of the phase one was sold during the launch. Bromelia sits on a 13.86 acres freehold site, with a gross development value of RM152mil. Located at the developer’s township development of Bukit Puchong, the gated and guarded landed stratified development is a low density residential project consisting of 137 units of 2 and 2.5-storey terrace, cluster and semi-D homes. Bromelia’s terrace built-up ranges from 1,798 sq ft till 2,271 sq ft whilst the cluster and semi-D built-up ranges from 2,000 sq ft till 4,000 sq ft respectively.

AYER Holdings Berhad’s Group Chief Operating Officer Jeannie Khoo

As according to AYER Holdings Berhad’s Group Chief Operating Officer Jeannie Khoo, the group embarked on its first online preview launch for Bromelia by offering registrants an online live streaming platform to view, select and book their choice units. “We have taken the recent pandemic into perspective when incorporating the multi-functioning design to provide spaces that cater to lifestyle changes and new norm of working from home. Traffic free jogging trail, landscaped garden with a children’s playground, basketball court, outdoor fitness, BBQ terrace and an elevated viewing deck provide our residents with ample social and community spaces.”

Based on the overwhelming response, Jeannie believes that there is continued interest in landed properties that has good access, quality design and value for money. “The majority of our buyers purchased the units for self-usage while a few of them purchased for investment purposes and we had repeat buyers besides first-time home owners” Jeannie added.

“What made Bromelia’s phase one launch a success is the incorporation of technology as we provided VR show unit, e-Brochure, digital scale models besides the community living design and attractive pricing from RM800,000 onwards. In addition to the fact that it is a landed property on freehold land, which makes it a very appealing purchase,” said Jeannie.

— end of press release —

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BRT in JB. Not too exciting. RTS next. Can make it FASTER?

I think it’s clear that my personal preference is for Iskandar and Singapore to be better connected. Not just me, Singapore’s Prime Minister said the same thing especially for Singapore SMEs.
Singapore’s future growth potential depends on local SMEs
  Besides Temasek is already a
top investor in Iskandar today.
 Surely they are not doing it because of friendship alone. 🙂  Coming back to the ‘connection.’ Nope, definitely not through the 2 hour jams everyday using the Causeway. (This is the cause for the jam, anyway…) I was thinking about some form of rail connections, extending from Singapore into Iskandar. Specifically, the Rail Transit System. This would have to wait a bit. The Bus Rail Transit (BRT) is coming earlier. It’s slated for 2020.

According to an article in
TheEdge Markets,
the Iskandar Regional Development Authority (IRDA) is in the final stages of discussions on the Johor-Singapore Rapid Transit System (RTS). IRDA CEO Datuk Ismail Ibrahim said, “We understand that it is important to not only connect within the region but also with Singapore. We are at the last stage of discussions to connect Singapore and, hopefully by 2020, the BRT (Bus Rapid Transit) system in Johor will be connected to Singapore’s transport system.” He added that the Rapid Transit System (RTS) would come by 2022. This means you can actually take the train in Singapore and stop in Iskandar. Two countries, linked. Cool, right.

Ismail also shared that current population of Johor is still too low for a public transport such as MRT or LRT. (I agree with this, for now. Let’s not even talk about the cost or who is going to pay for it.)  Oh yeah, to anyone who thinks that the BRT or RTS is benefiting Iskandar only, let’s be a bit more objective. You can have all the thinking if you need but to produce what you designed, it’s is better done at a lower cost country, especially one right next door. Of course, one would then argue that there are so MANY other choices that Singaporean SMEs can rely on. My answer? Just look at the Causeway everyday and during holidays, we should already get the idea that JB is a by far more natural choice. Seriously, Hong Kong can’t continue growing without Shenzhen producing the goods lah. How to produce in a country where the cost of land is exorbitant and then trying to export to the world, fighting against lower cost producing countries? Happy waiting. Faster please, in my opinion.

written on 3 May 2017

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BRT Related Press Release: IRDA On The Way Towards Sustainable Mobility

PETALING JAYA:
 City planning is an important aspect that has been looked into by Iskandar Malaysia as it seeks to tackle urban issues ranging from the lack of sustainable mobility to economic imbalance.

 Datuk TPr Ismail Ibrahim

According to the master planner of Iskandar Malaysia – the Iskandar Regional Development Authority (IRDA) – led by Datuk TPr Ismail Ibrahim as Chief Executive, Iskandar Malaysia’s total cumulative recorded investment reached RM341.4 billion since 2006, with 61% of this has been realised.

In his talk at the City Expo Malaysia’s Star Talk series here on Thursday (Aug 19), Ismail said IRDA’s planning is aligned with the need to support national goals, especially in pushing for sustainable mobility.

“Connectivity is one of the major aspects that needs to be improved so that goods and people will be able to move seamlessly, which then would be able to create an ecosystem to attract the right and impactful investment,” he said.
Ismail said in creating a good metropolis, the importance of connectivity is of paramount importance, with the Bus Rapid Transit (BRT or imbrt.com.my) system being one of the smart mobility initiatives rolled out by IRDA

He adds that since the inception of Iskandar Malaysia, the coverage of public transport is less than 35% of geographical area, and the goal is to increase the coverage to about 90%.

“The way to move forward from looking at developed nations and modern cities around the globe is by using public transportation.
“BRT would be the game changer. We are looking to shift the ratio (of trips using private vs public transport) from 85:15 to 70:30 or 50:50 through the BRT completion (expected by 2023),” said Ismail, who added the buses will also be fully electric to further lower their carbon footprint.

The system covers a total of 2,043km with three main lines, namely Iskandar Puteri, Skudai and Tebrau, with 44 direct routes and 55 feeder routes.

IRDA is also in talks with Johor Bahru City Council and Iskandar Puteri City Council about proposals to improve the commuting experience, such as providing sheltered walkways, wheelchair-friendly sidewalks, and ensuring well-lit places leading to the bus shelters.

The project is a strategic national initiative to develop a reliable and convenient bus transit system to improve accessibility and enhance the quality of life of the communities in Iskandar Malaysia.

It is Malaysia’s first comprehensive state-level implementation of a BRT system in the country and will serve as a backbone of the public transportation infrastructure in Iskandar Malaysia.

IRDA is also working with the Rubber Research Institute of Malaysia to incorporate rubber as part of the mix for paving roads in fulfillment of its goal as a low carbon city.

Besides the new areas, IRDA is working on promoting modern farming by embracing state-of-the-art ttechnology that generates a smaller footprint by drawing upon success stories from Holland, South Korea, and Japan. Learning from these countries, Malaysia would be able to continue to look at food security from another perspective.

With the Covid-19 pandemic it has impacted the space designs and there will be a need of intervention to relook at how they should consider designing spaces post pandemic.

Ismail addressed this issue by stating that they have to start looking at the changing patterns of consumers and adapt accordingly or we won’t be able to stay competitive.

This relates to how we progress and think on the lifestyle of the future consumer. For example in the past we had emphasis on the separation of work and residential space but with the given environment we will have to innovate to the consumer needs accordingly.
City Expo Malaysia will continue to hold Star Talk Series over the coming weeks, touching on topics based on the 16 urbanism themes that will be explored at the Expo ranging from mixed-use development, smart cities, placemaking, walkable cities and many more.

City Expo Malaysia is the first virtual expo on city planning and development.

— End Of Press Release —

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When prices rise double the income for 5 years?

Briefly, the property bubble will burst when the market could no longer provide support to the property price. The support we are talking about here refers to people’s income. If we earn way too little versus way too high property prices, of course we are not able to support the prices. To explain very briefly why prices actually go up, there are many popular areas and buyers usually love to buy into those areas. The issue with these areas would usually be the supply; it is no longer increasing in big numbers every year. However, buyers who have the money and would like to buy into these limited supply neighbourhoods are always increasing.
Earlier article here.

Who are some of these buyers? Some just got promoted into senior management, for example. Some just changed job and had a 30 percent increment for example. Last but not least some got a windfall bonus of 8 months (this is not uncommon in some industries yeah) and suddenly have enough downpayment. These situations continue to happen but the supply of properties in that particular hotspot? Well, nearly stagnant unless we are talking about areas nearby the hotspot instead. Thus when demand is more than the supply, the price would move up. However, prices CANNOT keep moving up if it’s moving much faster than the income. Image shows the average salary increment in Southeast Asia for 2018.

Assuming property price went up by 10 percent in one particular year and the typical increment for that year was 5 percent. The market will still be okay because it’s tougher but buyers could still afford it. Second year the same thing happened and buyers got upset but in the end still decided to buy. Third year the same thing happened and now the potential buyer is really stretching his monthly mortgage to the limit if he is still buying that property which has gone up by over 30 percent while his salary barely touched half of the property price increase. If this continue for just 2 more years, I think it’s clear that majority of the buyers could no longer afford the increase. In other words, every time property prices rise way faster than income, the bubble continues building up. When the price could no longer be supported by the income, this is when the property market crashes. There is no need for any predictions, just get to know what was the property price increase and what was the increment. Happy working and buying.

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written on 5 Nov 2018

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Bubble is still brewing in Malaysia? – Some reasons given.

On June 28, M Shanmugam of The Star wrote about an interesting topic. His article reads, ‘Property Bubble Still Growing’. I am very sure he has done sufficient research as well as relevant property sector experience to have such an attention grabbing title. Normally, these ‘bubble’ title, if you go online would point to a few other markets such as China, Australia, London just to name a few and his article is pointing at Malaysia. He said, while it’s true that the transactions are going down but the elements of a bubble brewing is very much intact. Some of the reasons he stated include:

1) No major property projects have been shelved or delayed in Kuala Lumpur and Johor Bahru which indicated the confidence level of developers. This is still happening despite the slowdown in demand.

Before he gave the second reason why he felt that the bubble is brewing, he touched upon the facts from Bank Negara which showed the Malaysia House Price Index dropping. Sales and new property launches continue to drop and borrowers with three or more mortgages declined to 4% from nearly 16% in 2010. Some 84% of all borrowers are only having one property. Banks also have a better buffer for any slowdown because proportion of outstanding housing loans with a loan-to-value of above 70% had declined to 46.6% from 50.1% in 2012.

2) However, he said that a slowing down market does not mean it is not going to cause damage to the financial system. He said all these slowing down was because of the government’s tough measures such as RPGT of up to 30%. Then, he said that even with all these measures, the over-building situation in KL and JB continued and he said the massive launches by developers from China have gotten even the government agencies worried. In fact he said that ths over building of commercial space in the city are coming from government-owned developers. One specific project was highlighted, the Tun Razak Exchange (TRX) which is under the 1Malaysia Development Bhd and this was because it got the land on a silver platter.

3) He further compared the TRX to the development of KLCC project in the late 1990s. The TRX is a 15-year development and by the end, 30 million square feet of commercial space would be coming into the market. If we divide this using a simple calculation, it means on a yearly basis, around 2 million square feet of commercial space would be coming online every year.
(For the benefit of everyone, the office space available in Klang Valley is estimated to be 100 million square feet by Jones Lang Wootton (JLW) in 2013.)
  BesidesTRX which is an oversupply, there is also the Menara Warisan which I think has been ‘changed’ name to KL118 and from 100 storeys, it is now 118 storeys. Anyway, this is still considered a rumour without any formal announcement by PNB.

4) He mentioned that though Country Garden Holdings Ltd announced that 6,000 out of 9,000 units have been sold, there has been no news about the remaining units. There are up to 30,000 new units of apartments to be launched very soon in Johor Bahru. He also said that a government strategic investment arm revealed in a study that the number of apartments and commercial space coming into Johor Bahru within the next few years is 30 times that of Mont Kiara.
(I am not sure if JB which is right next to Singapore and has 100,000 people commuting to and fro everyday for work is a good comparison to Mont Kiara.)

5) He said that many of the cooling down measures taken by central banks from Asia in the last four years have helped to reduce speculative demand and over-building. However, he questioned the effectiveness of these measures in curbing property bubbles. Then, he said that the RPGT has had an effect. However, how long can the effect be no one knows. In his last conclusion, he finally stated that over-building by developers are still continuing and thus it will fuel a property bubble. His suggestion is for more conventional tools such as tightening monetary policy to curb speculation.
(One tightening monetary policy is the increase of interest rate)

Personally, my opinion about commercial office development is simple. For older buildings, the maintenance better be good or the newer buildings will take over your customers. For newer buildings, with the probability of occupancy rate dropping to 73.82% by 2016 (as per Zerin Properties CEO Previndran Singhe, also reported by The Star in March 2014), please be very efficient in controlling your costs and effective in selling your office space. Seriously, there has not been that many new commercial properties in Penang but you can still find office space rental for just RM1 psf. However, in Klang Valley even in so called newer areas which was not looked highly upon, Bangsar South (Kerinchi), the rental is RM5 psf when I heard about it last year. As an office worker, I seriously mind old buildings.

In terms of comparison, my view is, isolate the necessity from the luxury. In an article I wrote about affordable property just few weeks ago about the latest condo in
Penang at RM300,000
, there were a total of few thousand views within few hours. We can see transactions going down a lot when compared to 2011 or 2012 but if you are a developer and you launch a decent sized condo below RM450,000, even in an area known for jams, rest assured, it will be fully taken up. The recent statistics has shown clearly, the 16% who bought more than three properties previously, has been reduced to a mere few % today.

Oh yeah, how can you actually know if there’s a bubble? Even if you are just a nobody like me? You can read a bit here:
How to spot property bubble?

One thing I cannot understand until today is why has the luxury properties bubble still not yet burst. If there is indeed a bubble, the luxury ones should be the first to burst. You can already see so many empty units for those condos above RM1 million. Even in Penang, so many of the new units completed are empty and dark at night. If only the bubble for these units can burst first, perhaps I get to buy one of these luxury units at medium high end condo price. Oh yeah, one thing not mentioned by M Shanmugam was how much would prices drop when the bubble burst. I would love to read his next article on this. I also hope that majority of the younger population who has not own a property yet would get ready to buy once the bubble bursts. Such opportunity, if it materialises does not come often.

written on 30 June 2014

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Of bubbles, declining prices and mortgage defaults rising. (It’s a cycle)

Source: housingwatch.my (A BNM website)

After years of cooling measures

recommended by the Bank Negara and even
responsible lending policies by all the banks
,
the average home price increase in Malaysia is actually dropping for most states except for Johor. Take a look at the image showing the Q1 2017 versus Q2 2017 and vs the average for the past 26 years. Average numbers anyway. Do note that some areas in Greater KL has seen

drops when we look at prices in 2016 versus currently for example.

Bubbles form when prices move up way too fast and if it suddenly drops a lot because no one would afford those prices at the top, we say that the property bubble has burst. So, is the property bubble about to burst then? Usually when the bubble bursts, the mortgage defaults would start rising. Perhaps there are more auction of properties from the banks in this case. Okay, enough about Malaysia’s not-so-advanced property market. Let’s look at Australia’s.

This is the full report by
nationalmortgagenews.com
.  It says that the real estate market of Australia is not going towards the housing bubble territory.  However, home prices continue to decline and mortgage defaults are likely to rise.
(Actually, I do not understand why when home prices decline, the mortgage defaults may rise unless of course some of these owners lose their jobs for example. Anyway, please read on)
   These happenings are actually a cycle… Carrington Mortgage Holdings Executive Vice President Rick Sharga said, “It’s interesting to watch the dynamics of the market. What we see is prices rise, sales activity slows down, prices weaken and then sales pick back up.”
(Okay, this one is easy to understand and shows the usual logical way how the property market behaves as long as everyone keeps their jobs and have salary ups every year)

Continuing with the article,CoreLogic Chief Economist Frank Nothaft said that even though some housing markets are overheated but, “it doesn’t mean necessarily that tomorrow or next week or next month or even next year prices are going to crash. But it’s prudent being a little more cautious about investments in those metro areas.”
(Please understand his statement carefully. There are already housing markets which are overheated. Even in Greater KL, some condos are already priced above what senior manager couples could afford. Do note though that for some wealthy businessman, they are usually not that interested in sub RM1 million properties. Buy cautiously would be better. I think he is saying the same thing for the Australian property market too)

Next would be a historical comparison by CoreLogic.  CoreLogic’s comparison of 380 metro areas in January 2000 showed that 6% were overvalued while 87% were at value. But by November 2006, 67% were overvalued and 32% were at value. At the bottom of the market in March 2011, 7% were overvalued, 42% were at value and 52% were undervalued. As of December 2017, there was a more even distribution among the three groups: 33% overvalued, 35% at value and 32% undervalued.
(Going by Corelogic’s numbers, it does seem that everything’s better distributed but that 33 percent overvalued is still pretty high.)
Well, do read the rest of the article here.

I think it’s good information to know what people should be looking at when it comes to the property market. Always learning how these experts are assessing the market allows us to also assess our own backyard better too. Three things we learnt here I think. When the market is overvalued, it meant that prices are beyond the affordability of many. When that happens, buyers may not be able to buy and the market slows. Prices would adjust themselves and after a while, buyers start buying again. Within one property market, there would always be overvalued, undervalued and even fairly valued properties. We just need to be aware of them so that our decisions are more of a calculated one. Last but not least, we must not see Malaysia property market by itself but rather understanding how the more advanced property markets are moving and being evaluated. Happy learning.

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written on 1 April 2018

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When it’s profitable, many would rush in. Normalisation will happen later.

How many of us would jump at an opportunity to earn money? I meant the real ones, not some scams. I think the answer is all of us. Everyone want to grab opportunities which come along. Remember long time ago when many shops were selling handphones and the owners were earning tons of money. Well more shops were opened and soon, we could see only the serious ones remain. This is the same for bubble tea.

I was back in Ipoh before COVID-19 came and I brought my wife and my kids to a nearby bubble tea store. There were a few people inside and within that one hour which we were there, we counted nothing less than 30 cups were sold. Whether it was walk-in customers or the delivery riders. In short, the orders were non-stop even if I could not say the shop was busy every minute. Only 2 other tables were occupied.

After we have completed our afternoon drink, we went out and I walked to another shop which was just 3 doors away. There were no customers, not even one inside the shop. The three bubble tea barristas were chit-chatting. By the way, further down these two was another bubble tea store. As I drove past, I think this shop also does not have customers. What has happened? Well, that bubble tea craze may be past and now, only the major brand names with good products could continue to get normal profits. The rest may just waiting for their final day to come. This situation is not only in Ipoh. Oh yeah, the brand I had? Xing Fu Tang lah… coz the other two shops were unknown brands to me.

Article in edgeprop.my
 . There used to be over 30 bubble tea shops in SS15!  Today, some have closed. Rental rates were said to be as high as RM12,000 per month. Right now, it is said that the owners are asking for just RM7,000 – RM8l000 per month. IQI Realty Sdn Bhd real estate negotiator Jacky Chong said, “For a ground floor unit facing a main road in SS15, the rent now can go as low as RM6,000 to RM8,000 a month compared with the previous highs of more than RM10,000 per month.”

Chatto co-founder and CEO Terence Lee said, “The challenge is to convert our walk-in customers onto delivery services but major food delivery companies are charging between 25% to 35% commission which is affecting our margins.” He also shared that some landlords offer up to 50% discount while there are others who provided none as well. The article is a comprehensive one. Do read it here:
Article in edgeprop.my

Rental was said to be RM8,000. Assuming the shop hires 4 other staffs and pays them RM2,000 per month. We assume the utility bills come to just RM4,000 per month. (electricity, water, cleaning and other miscellanous).  This is a total of RM14,000 even before the first cup of bubble tea is sold. If we assume every cup has a margin of 20% and the price for one is RM10, that’s RM2 per cup.  To get to RM14,000 the shop needs to sell 7000 cups and over 30 days, every day the shop must sell over 200 cups.  This is just to cover the costs…  WOW…

Okay, in case you think 200 cups is a lot, remember my one hour there in Ipoh? It was already 30 cups. So, maybe 200 cups not that high either.  When I was in Penang, in an hour in one of the bubble tea shop in Karpal Singh drive, we counted a total of over 50 cups.  Assuming the whole day productive hours are only 6 hours out of the 10 hours the shops are open, this is still 300 cups. No wonder many of these shops are still around!  Well, the profit is now normalised… Perhaps the stronger names remaining will continue to survive and perhaps even thrive because even a Gen-X like me drinks bubble tea every month. Plus I send my brother and sister some occasionally too.

Most of the time, I am TEALIVE fan lah but Xing Fu Tang is more delicious for me. It’s more expensive too. Happy understanding that when there are exceptional profits, many would jump in and more would join until the exceptional profits start to return to normal levels.  Oh

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Bubble will burst when S&P 500-stock index reaches 2250.

Yes, this is a prediction by an expert. According to Jeremy Grantham, chief investment strategist at Boston-based money-management firm GMO, there is already a stock bubble but this bubble will not be bursting yet, not until the S&P 500-stock index reaches 2250. That’s another 10% to go. What’s the current S&P 500-stock index? Refer to the chart which I googled from google.com of course. The main reason was because of Federal Reserve’s easy-money policies. Once the index hits 2250,bubble would burst and the stock market would drop 50%!! That’s a very scary thought. Think how this drop would affect all the other stock markets around the world including Malaysia.

If you think he may be wrong, well, it was reported that he was right about the Japanese bubble in the 1980s as well as the dot-com craze in the 1990s. The truth is, the stock market today is already overvalued because there are already many negatives which are somehow not priced into the market. For example, the ending of Federal Reserve’s bond purchase program, the potential interest rate increase early ext year as well as even the recent Ebola outbreak. To him, there’s just too many negatives, both technical and psychological and this makes the overvaluation, ‘disturbing’.

There werea few gloomy predictions recently. For example,
the end 2015 recession
. Most if not all of them pointed to 2015 as the year when all these would happen. Well, if all these do happen in 2015, the choice of 2015 for GST introduction in Malaysia seems pretty okay. There’s not a lot of things to disrupt. Oh yeah, if you believe these predictions, then the steps to take would be sell and save. Sell your properties now and save the money. It will come in handy in 2015 or perhaps 2016. Note: Only if you believe them. If you do not believe their predictions, then the strategy should just be   keep buying good value properties for rental. That should be quite a safe strategy to have, especially now, some owners are more willing to negotiate. Rewind back to 2012 and you would notice that the sellers were very demanding. ‘Nothing lesser’ than what they expect or else they sell to other buyers. Today, I do not yet see desperate sellers but they are definitely friendlier to potential buyers. Happy thinking if it’s worth believing.

written on 29 Nov 2014

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New Budget 2015 and 1998 crisis

Has everyone read at least 20 articles online or on newspaper about the revised Budget 2015? I am very sure you know the details by now? Main points include a cut of RM5.5 billion, deferment of electricity tariffs, getting more Chinese visitors from China and a revision of fiscal deficit from 3 percent to 3.2 percent for 2015. It includes many other stuffs too but I guess many would be either on this side or that side as usual here in Malaysia. For this side, they remain pretty okay, nothing too bad has happened at this moment. For the other side, everything is not okay, in fact with this revised budget it meant that very soon Malaysia will reach the 1998 economic crisis level!

For those who have gone through or anyone who has studied economics from year 2000 onwards, perhaps some might have studied about the huge 1997/1998 crisis which ‘destroyed’ the few seemingly unshakeable economies in the South East Asian region. If you have studied and you know just a little bit of details, do you know the what’s the difference today? The difference is major. Back then, everything was in a disarray. The banking was in trouble, majority of all the seemingly healthy companies became sick overnight and there was virtually NOTHING that can be done beyond going to IMF and beg for funds and cut whatever they ask you to cut and sell whatever they ask you to sell, at fire-sale prices OR you introduce capital control, get a breathing space and quickly restructure, recapitalise and reopen the economy gradually. Remember terms like Danaharta? Which was heavily criticised but then followed by some strong economies which criticized us then? Actually, it’s okay even if you do not remember but I can tell you that 2015 is definitely nowhere near 1998 levels. UNLESS the whole world goes into crisis once again.

Okay, what if you insist in believing that 2015 is an unfolding 1998 all over again? First, don’t think of buying any property or you will be trapped. This is true even if you think you are buying affordable ones. Reason? The currently expensive ones will be affordable soon. Please wait. To any friends buying properties, warn them. Second, don’t buy stocks. During crisis, the first to show is the never ending falling prices in the stock market, even for healthy companies of today. I am not joking. Please refer to the 1998 KLSE (now Bursa) charts again. Google for them. Third, keep cash, lots of cash and in different banks. If you seriously think Public Bank or CIMB bank or Maybank is not strong enough, by all means keep them in foreign banks.  Fourth, don’t even think of buying a new car, you will literally ‘die’ for it soon enough. Fifth, it’s ok, I think I will stop here.  You can ask any economist whether these are good measures to take if you believe a crisis is coming. I think majority would agree.

However, if you think perhaps during this tough times, we can help the country a bit? (sorry, nothing to do with the government of the day). Well, you can do following, try to buy local goods first. Even the local fruits help a lot if everyone can do the same. Just a 10% reduction in food imports would save the country more than RM1.5 billion. Second, support the local economy, travel within Malaysia first for 2015. You can travel overseas in 2016 but for 2015, imagine if just 100,000 Malaysians skip their overseas holidays? Third, please start to use your money wisely. If certain hawkers are way too expensive, buy from cheaper ones, buy from two hawkers if you want, then you are supporting two hawkers instead of one. Fourth, encourage your friends and relatives from overseas to visit you this year. After all, Ringgit is so low, they would be having super-spending power for 2015.

My thoughts? I believe the government must do more to cut the deficits faster than their current plans. Even if it means they will lose more popular votes. I also believe the opposition must do more than just simply opposing. Give really constructive ideas and not popular ideas please. Many dislike the government of the day and everyone should have their own opinion but why destroy your country to win more popular votes? Hmm.. I think both sides are thinking about votes yeah. Well, votes are with you and me then. Happy voting then.

written on 20 Jan 2015

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Budget 2015 – GST, MRT, LRT, Petrol Subsidy

What’s the common element of MRT, LRT, BRT, ‘Keretapi’ and Petrol Subsidy? On Friday, my colleague expressed relief that GST was not imposed on Ron 95 petrol. I told him, that’s not the main point because petrol subsidy continuation was not a correct decision. It was a historical decision which will take time to take out. Perhaps when it was first given, we needed it. Today, we needed to ensure it’s given to the rightful and needy and not just everybody. Every time petrol prices are up, I hear people grumble. However, have you ever noticed that that sales of cars which are larger CCs are increasing every year? If I remember correctly, the sales of premium cars are increasing by double digit growth every year. Oh yeah, the difference in consumption for a 2.0 litre car vs a 1.0 litre car is only about 3 times….. In other words, the bigger your car, the more subsidy you get. If I can afford the 2.0 litre car, I better be able to pay for the petrol. Otherwise, stop trying to show off. Just drive what you can afford.

The typical answer when you ask, ‘why not public transport?’. Oh, it’s not convenient enough. I stay too far, I needed to take a bus first before the LRT. Therefore, I needed to wake up much earlier. During peak hours, it’s impossible to get into a train. It’s just too full! If only we are like Singapore, it’s so convenient and the people do not have to drive a car. Truth is, They say, if you want, you will put effort but if you do not want, then you will give excuses instead. (Malay proverb). Even in Singapore, do you seriously think during peak hours, it is easy to get into the MRT train? Do you seriously believe that all Singaporeans LOVE to take MRT instead of having their own car if they can afford it?

Real example. Do you think a typical family of 4 would prefer MRT versus driving a car when they are going out for shopping or dining? Father carries baby stroller on his right, groceries bags on his left while the mother carries baby on her right and holding her 3 year old son on her left? The baby backpack is carried by either one of them? Oh yeah, and climbing up the staircases here and there? How about the typical family of four includes two elderly instead? Get real. It’s the same world. However, MRT gives them an option to still do things they want to do. So, MRT in Malaysia basically serves the same purpose.

Cars can always be an additional option for Malaysians. Something which smaller countries would never have. However, it can be used more sparingly compared to now. It can be used for longer journeys where you want to stop ANYTIME you want, along the way for great food and sights. No public transport can give us this. It can give you real convenience especially during emergencies and even just to get your favourite chilli sauce from the store 5 minutes away. It can allow you to send your mother to the hospital for her medical check up and you can stop at the lobby so that she does not need to walk a few hundred metres to catch a bus. Yes, all these can continue to be something we can enjoy. However, it should not be a burden to the nation because if you look at all the international rating agencies. Fuel subsidy bill is one very important point as to whether they downgrade or upgrade us. Question is just when and how. It’s no longer a IF.

written on 12 Oct 2014

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Budget 2015: MRT Line 2 – RM23 Billion for savings in petrol subsidy by 2020?

When there are more cars, the higher the petrol subsidy would be. How about there are more cars but there are less cars on the road on week days? As of today, it still sounds unlikely to me but we will see how the people would be persuaded to use MRT once it is ready instead of driving their cars everyday. The target for 2020 is to have public transport accounting for 50% of all travelling versus 25% by end 2015. Currently? It is at 21%. Do bear in mind that it was as high as 34% back in 1985. In other words, private vehicles has taken over because the public transportation has not kept up with the rate of urbanisation in Klang Valley.

With the inclusion of MRT Line 2 and assuming the 50% public transportation modal is achieved, it is possible that the subsidy for petrol alone might be capped at the same number as today. My rationale is that within 3 years, the fuel subsidy for every driver today would have been totally replaced by a more direct mechanism, a targeted one. Thus, I can already feel that drivers of cars with 1.6 litres like my wife, my brother, my sister and I may only receive half if any subsidy in the near future. As for drivers of small cars, the subsidy that they will receive does not need to be that high anyway. For example, Perodua Axia needs just 10 cent per km even based on today’s Ron 95 price. Yes, now you can se huge savings if you are driving a 1.0 litre car.

Therefore, the cost of MRT Line 2 of RM23 Billion is considered value-for-money kind of investment. What IF even after completion of MRT Line 1, majority of the people still choose to drive? I think they have to be ‘PERSUADED’ aggressively. Do not look too far, think along the lines of Singapore, a country majority of Malaysians said is a good role model. Right? Oh yeah, Singaporean drivers may be charged based on the km that they drive within the CBD within a few years time. Today, it’s the Electronic Road Pricing which will charge you everytime you pass any of the 80 ERP gantries. During peak hours, passing through 5 ERP gantries may cost you up to S$15. (RM40). Imagine driving to and fro and imagine 22 working days per month. Now do you know….

Actually, both my Personas are close to being fully paid already. I will most probably sell one and buy a 7 seater MPV for ease of travel when my parents are around. Another Persona may be changed to a smaller car, thus lowering my petrol consumption. As long as it is 5 Star Safety Rated, with ABS, EBD + min of 2 Airbags, I will go for it. Next year is the year. We shall see.

written on 11 Oct 2014

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Budget 2015 – Property Related, Overall Summary

Yesterday, every major newspaper has Budget 2015 as its deadline. Today, every major newspaper has Budget as its headline. Not just newspaper but every online sites and perhaps every Malaysian business related sites. Ok, what should kopiandproperty.com publish today? Haha. Yes, let’s start with Budget 2015. In a glance, everything related to property is as listed below, together with an easy to understand explanation of what it entails. Actually quite a lot of good news for the continuous development of new popular areas.

Highways confirmed:

Sungai Besi – Ulu Kelang Expressway (SUKE) – RM5.3b

Damansara – Shah Alam Highway (DASH) – RM4.2b

Eastern Klang Valley Expressway (EKVE) – RM1.6b

Public Transport related:

LRT3 – Bandar Utama to Shah Alam and Klang  – RM9b

MRT Line 2 – Selayang to Putrajaya – RM23b

East Coast railway upgrade – RM150 m

30% discount on monthly fares from Rawang, Klang and Seremban to KL on intercity bus services for those working in KL

ETS – Ipoh to Butterworth to start from April 2015 (This is a great news for my parents, visiting my brother in Penang)

Housing, Affordability and Availability

143,000 low cost units to be built

Limited to 20,000 units. First home loan, up to RM500,000 for MARRIED youth, ages 25 – 40 with household income less than RM10,000

50% stamp duty exemptions on transfer / loan agreements

Household income eligibility ceiling for PR1MA raised to RM10,000

With great powers, come great responsibility. Well, with MORE highways, come MORE high-rises. I think if the traffic can be better, of course  many people may think about staying slightly further away instead of ‘killing’ each other trying to buy where everyone wanted to buy and thus pushing up the prices. As soon as you look slightly further away, prices come down a lot.

MRT Line 2 is now confirmed! Selayang to Putrajaya. I drove to Selayang the other day, I think it’s already having lots of population but there are still lots of land for it to develop. I think the MRT Line is starting at the right place. Two weekends ago, I drove to Putrajaya. It is a place which everyone told me is a ‘dead’ place. Somehow I like the environment there, roads are huge, parks are available and there’s even a man-made beach for those who just want to do a selfie of yourself at the beach. Anyway, MRT means ‘More Rakyat Transportation’, according to me.

LRT3 – Bandar Utama to Shah Alam and Klang. I think the linkage is more for the stops in between. As usual, the more availability, the better. Stop complaining there’s no public transport within a few years’ time. In the mean time, sorry, just stay calm and do your best. At least, it’s now confirmed,  coming.

If you are not married, too bad. Better get married fast to be entitled to the first 20,000 units of RM500,000 and below home loan if you first time buying your first home. I think this is a very attractive deal and everyone should aim to get this first. For those who do not quality, there’s still PR1MA and other affordable housing projects by the state governments. Now, household income eligibility for PR1MA is up to RM10,000. I think even more are qualified. Just do not waste this opportunity.

I know, as usual, there are lots more which can be done but as soon as the fuel subsidy is rationalised further and the GST starts, the money saved would hopefully be used for productive purposes. Help the needy, that’s the priority.

written on 11 Oct 2014

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Budget 2015:  Tax Breaks / Relief for Individual and Corporate

GST was supposed to rationalise the tax collection so that if you consume more, you are taxed more. Especially the GST rated goods. For the essentials, as usual, no GST. Oh yeah, until today, you can still get a loaf of economy bread from Tesco for just RM2. There are 16 slices which is enough for 4 meals of 4 slices. That, would remain GST free. For Budget 2015, what has happened to the individual and the corporate tax? Something which Malaysia has been struggling to adjust every year because the subsidy amount is getting higher every year? There’s good news for both.

Individual

– Income tax reduced by 1 – 3% and hey, 300,000 additional individuals no longer needs to pay tax. Anyone who’s earning RM4,000 or below DO NOT need to pay tax.

– Chargeable income subject to the maximum rate will be increased from exceeding RM100,000 to exceeding RM400,000. I think majority of the senior managers who are reading this would be happy. Many earn over RM100,000 per annum easily but if it is RM400,000 then the number affected reduce tremendously.

– Current maximum tax rate of 26% will be adjusted to 24, 24.5 and 25%. In other words, savings in tax of 5.3%

– Tax relief increased from RM5,000 to RM6,000 for treatment of serious disease, each disabled child and purchase of basic support equipment for disabilities. None of us want this kind of relief if possible but for those who needed it, this is indeed a relief.

Conclusion
:  I think the one which will give us back more money to spend would be the income tax rate % itself. In fact I think if the GST works well, this will continue to be reduced. Just work hard, invest smartly. You already pay less tax now as long as your earnings per year is RM400,000 and below. That include me as well. Haha. Anyway,I do not regard income tax as the best tax structure because there are lots of people whom I know are NOT paying tax due to the type of business or work that they do. Yet, these people drive much better cars than me. Hmm…..

Corporate

– Cooperatives’s tax rate reduced by 1% beginning 2015. That’s pretty soon.

– Secretarial fee and tax filing fee are allowed for deductions.

– Corporate income tax will be reduced from 25% to 24% beginning 2016. Okay, if you ask, why not from 2015? I would just smile and would not answer this.

– Income tax for SMEs would be reduced from 20% to 19%. For those who are thinking of entrepreneurship, I think moving forward you should think and just do it.

– If you do CSR, it’s now double exemption Until Dec 31 2020. Come on, there are lots of CSRs that a lot of companies can do. Question is, are they ready to do. I still think there are way too many companies which think CSR is just a waste of productive time. Sigh…..

– Double deduction for scholarships to students in vocational and technical courses in the certificate level. This is easy to calculate.

– Double deduction on expenses incurred to implement a structured internship for students at diploma and vocational levels. As usual, internships are hard to control. Some companies are trying to use ‘cheap labour’ but at least with this, some of them may change their ways, hopefully.

– If employees are sent for certain certificate qualifications from accredited vocational and professional bodies, these expenses are allowed further deductions.

Conclusion
: Corporate Tax % in Malaysia has been said to be higher than many countries. Very true. However, the so called ‘many countries’ already have GST while Malaysia will only be starting in April 2015. If after GST, the corporate tax remain as it is, rest assured, there would be less companies being set up in Malaysia. If GST works well, the corporate tax is definitely going to be adjusted downwards.

Malaysia is now at an important juncture. I do not see per capita income or subsidy or even property prices as separate issues but all these are national issues. Per capita income cannot rise productively if there are always distortions which are beyond our control. Subsidy cannot continuously be for everybody. Target the industries you want to push up. Target the needy. Everyone must be given a chance to own a property. A very famous leader once said, ‘Without a home, no one would fight to defend that home when the enemies attack’. There’s also a Chinese saying, ‘Country. Without a home country, where is my home’. My home is a roof over my head for my family and I.

written on 11 October 2014

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Budget 2017 – Property related highlights

More affordability for civil servants –
Housing loan eligibility
 increased to between RM200,000 and RM750,000. (Current is between RM120,000 to RM600,000). In brief, the civil servants can buy more expensive homes? Hmm….

More availability for civil servants – 30,000 homes to be built under 1Malaysia Civil Servants Home costing between RM90,000 to RM300,000.

More availability of homes for B40 (Bottom 40%) – 5,000 homes to be built at prices between RM40,000 and RM50,000. RM20,000 will be paid by the government.

More availability under People’s Housing Programme – Another 11,250 homes to be built and prices between RM35,000 to RM42,000.

More RENTAL HOMES to be built in urban areas for rental for up to five years for new graduates or youths. As per reported, the number is 10,000 houses. Assuming each house can house 4, that’s good enough for 40,000 people.

Vacant government lands will be made available and estimated new homes which can be built under PPR (Projek Perumahan Rakyat) would be 8,900 houses. (I would like to suggest they ensure it’s high rise so that it can benefit more people instead of very small landed homes)

1st home buyers get 100% stamp duty exemption on transfer and housing instruments. This helps toreduce house buying cost – limited to houses with value up to RM300k. Effective period – 1 Jan 2017 to 31 Dec 2018. (For first-time buyers, this should be another consideration as stamp duty itself is between 1 – 3 percent, depending on property price)

PR1MA home buyers get “end-financing”
 for their purchase. From 90% to 100%. In brief, there’s little need to use own savings? Well, I am not so sure if this is good for the market.

Conclusion? The focus is solely on
trying to ensure everyone has a roof over their head
 which I think is good. All these measures are not likely to boost the property market in general as most of the properties mentioned above are the lower priced ones instead of the typical ones that most of the middle income Malaysians are complaining about. I shall not comment on whether their complaints are all justified but do note that many times, choices are still
available but it may not be the one
 that everyone is looking for. As for loan approvals, I favour a safer lending policy and not one where everyone looking for loans easily getting one. When that happens, I will be worried for the property market. I think the budget 2017 has not changed much for the property market currently but for the lower middle income Malaysians, perhaps it’s time they get a home of their own within these few years. Cheers and happy buying one.

written on 22 Oct 2016

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Budget 2018 wishlist by REHDA: Negaraku: Shaping the Future

A good friend asked me what’s my wishlist for Budget 2018 when it comes to the property market the other day. Before a tiny blogger like me share my wishlist, perhaps we look at what the RealEstate and Housing Developers’ Association (REHDA) has wished for Budget 2018.
The article in TheStar here.
These are their wishes, in brief. This was shared by REHDA president Datuk Seri FD Iskandar.

– Home Ownership Assistance Programme (HOAP) to the Ministry of Urban Wellbeing, Housing and Local Government (KPKT). The HOAP targets first-time homebuyers, including those who have sold their previous home to upgrade and relocate. This new scheme is directed towards houses below the RM500,000 mark and for those whose household income is RM10,000 and below. This scheme will not be applicable for cash buyers.

– Exemption extension for the stamp duty financing scheme to more properties of higher threshold, as long as it still falls under the affordable category. to the stamp duty financing scheme, Currently, the 100% stamp duty exemption is only applicable to houses below RM300,000 in Budget 2017.

– REHDA asked for Account II of EPF to pay developers for the 10% downpayment. Rehda also appealed for the percentage of contribution to be accredited to Account II be increased from 30% to 50%, applicable only to first-time homebuyers.

– REHDA hopes that the Special End-financing Scheme for PR1MA to also be extended to private developers.

– REHDA also hopes that the government should attempt to waiver GST for homes under the RM500,000 category. “Currently developers are paying 6% GST for bricks, cement and roofing materials. They should charge them only if it’s above the RM500,000 mark.”

He also shared, “There has been a levy on steel introduced February this year. Previously we are paying RM1,700 per tonne, but now it is at RM 2,728 per tonne. This cost will be passed on to potential homebuyers. We are looking at the cost that can be controlled such as conversion premium, development charges and infrastructure contribution funds.”
The article in TheStar here.

My own wishlist? Any measure must be to assist first-time home buyers ONLY. Actually not just the financing schemes but perhaps the Ministry of Urban Wellbeing, Housing and Local Government (KPKT) should engage property experts to provide
property investment knowledge
to the first-time home buyers. For example, roadshows where all the industry players could engage the potential buyers directly. This is especially when first-time home buyers are usually clueless and would just rely on their friends who may be just as clueless. There are many who said that the properties nowadays are becoming so expensive that they could never afford,
yet refused to expand their choice options.
 I think when the people are well-informed, the market would also recover. Negative sentiment actually helps no one. Not the buyer, not the seller and certainly not the developers and the government. Cheers.

written on 29 Sept 2017

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Oh dear, Budget 2019 is a ‘belt tightening one’

Malaysia Finance Minister Lim Guan Eng said that the government does not have any money to give out to the people for the upcoming Budget 2019 which will be presented in Parliament on Nov 2. He was speaking after a briefing on the Sales and Service Tax (SST) to businesses.He said, “The 1MDB scandal had created a huge debt for the country and if we are not careful, it would result in a major financial crisis.” Lim said the government was forced to postpone or cancel certain projects, and abolish the Goods and Services Tax and replace it with SST, to handle the present economic situation.
(I continue to think GST is a better tax system than the SST but then again, as a Malaysian, I will support SST and hope it gives the government the tax revenue it is looking for) perhaps SST is the better choice currently?)

Here’s the full article in TheStar.com.my

He shared that the government has kept fuel prices low and will continue paying the BR1M, now known as
Bantuan Sara Hidup.
 He said that even ministers had to take a 10 percent pay cut and incentives can be given only when the financial position improves. As for the corporate tax, Lim said that it would not be increased because it will make businesses less competitive while reducing it is also not possible under the present financial situation. He said, “Countries like the United States reduced their corporate tax from 35% to 21% and we may reduce it at a later date.” Malaysia’s standard corporate tax is at 24%. With regards to the SST, he said, “We are taking a softer, kinder and gentler approach in handling the SST as we trust the people would want to pay the taxes since a lot of exemptions were given for businesses.(I think what he wanted to say is that if you need to pay, you better pay.)
Here’s the full article in TheStar.com.my

It’s always good for the business to have a positive outlook. When the sentiment is negative, it will affect the way we consume and on a longer term, it’s not healthy for the economy. Remember yeah, when the people stops consuming, the businesses suffer and the tax revenue decreases too. When we look at the property market and we look at some launches at the right price point, they are usually snapped up very fast. However, on general people are much more cautious and the decision to buy is now further delayed. My real estate negotiator(REN) friend said that it’s now easily 10 viewings before one closure and times are not easy. I reminded him that this is why RENs need to provide consultative service to the potential buyer, to also update him about property investment and not just opening doors and let the customer view the unit. Anyway, let’s wait for the budget 2019 then. It’s a Future Strengthening Budget. (better name than belt-tightening). Cheers.

written on 10 Sept 2018

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Budget 2019: Property related items to encourage purchase among first-timers.

Let’s look at a few key items and the potential effects to the property market from my personal observation of the working people / first – time home buyers. This is the segment which the government intends to help.

Measures to encourage purchase:

#1 – 6-month stamp duty exemption for first time home buyers of houses priced between RM300,000 to RM1 million.  Comment:  This should push up the buying as long as the first-time home buyers are willing to buy within the mortgage which the bank will approve.  It will also lower the entry cost to purchase a property too.

#2 – Government to spend RM1.5bil on affordable housing. Comment:  More details please. How much is the subsidy per home? Or is this to help build additional infrastructure? Does this include BUYING a NEW SYSTEM to manage affordable housing? Will be awaiting for more details from our Local Government and Housing Minister.

#3 – Those earning less than RM2,300 will have access to a fund set up by Bank Negara Malaysia for homes of up to RM150,000 at an interest rate of 3.5% through selected banks.  Comment: Hopefully, we have more of these RM150,000 units which are decently built. From my conversations with some developers, even a RM200,000 unit meant that they lose money for every unit built.

#4 – Allowing property crowdfunding as an alternative to buy the first-home. Comment: I hope the crowdfunding is to build more homes and not for people to buy a 10 percent / a quarter of a property and then think they are already a first-time home buyer. Frankly, first home must be for STAY if we are talking about ‘rakyat’ issues.  As for investment purpose, that’s a much longer term thing.

#5 – Government will waive stamp duty of SPA and loan agreement till end-2020 for first – time home buyers who wants to purchase RM500,000 property. Comment: Definitely a positive one to encourage those who could afford but still staying on the sidelines to make a decision, faster.

There should also be more information made available to these first-time homebuyers who will always be worried with their first purchase. Just look at the occasional gloomy outlook predictions. These predictions may not mean much to the seasoned investors who knows that there will always be ups and downs in the market. For first-time home buyers however, these negative news will rattle them tremendously making that decision to buy their first-home being delayed even further. This is the reason why I would say the sentiment wise, there are two; seasoned investors thrive and keep looking for bargains in a slow market while first-time home buyers are still thinking if they should or should not buy now.

written on 3 Nov 2018

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Budget 2019: Simplicity matters, really.

Many friends were discussing about the fuel subsidy in Budget 2019. Well, naturally drivers of Exora 1.6 and Persona 1.6 are unhappy (my wife and I) while that of Vios 1.5, City 1.5 or even Almera 1.5 are happy that they will be receiving the subsidy of 30 cents per litre up to 100 litres per month. That’s RM30 per month. For the longest of time, I have been one of those who continuously said that subsidy must be targeted and not to be given to everyone. However, when the announcement was made about this ‘customised’ subsidy, I think it’s going to be another long story of how it will be implemented. I was right. After all the never ending discussions about how some luxury car owners will get it instead of the more deserving, here’s the comments from our Finance Minister Lim Guan Eng.

Article in TheStar here. “Give us time to iron out the mechanism.”
  Lim said, “But if you drive a luxury car, please don’t hold your breath!” (Okay that’s the end of one part; luxury car owners.)  He also shared that the subsidy was supposed to be for B40 group only but the government felt that it was too small, so they are expanding it to beyond B40 group. Domestic Trade and Consumer Affairs Minister Datuk Saifuddin Nasution Ismail said as many still owned old vehicles, accurate data would be needed from the Road Transport Department. A reminder came from Prof Tan Sri Dr Noor Azlan Ghazali, a UKM economics expert about the issue from the subsidised diesel previously. Many who took the subsidy sold it to others instead. Lim shared that the fuel subsidy system is expected to be implemented in the second quarter of 2019.
Full article in TheStar here.

Seriously, the fuel subsidy was announced on 2 November 2019 but it will only be implemented in the second quarter of 2019?  I am not getting it anyway but hopefully it’s going to be April 2019 and not end of June 2019 or later. Hopefully it will be smooth without any hiccups and not changed again if there are complaints when it is launched. Personally, we should make things as simple as possible and if the targeted group is too small, then it could also be a higher subsidy for the group. I do not think there are that many new Mercedes or BMW who will protest about the RM30 per month subsidy in front of the Parlimen building. Use ONE list only and perhaps the list from Lembaga Hasil is much better than the JPJ’s or combine both. Let’s remember what my Decision Science lecturer said to our MBA class long time ago, “Decisions should be based on Decision Science… and not Political Science.”  Oh yeah, this should also be the same for the Ministry of Local Government and Housing too…

written on 4 Nov 2018

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What’s in Budget 2021 for property market? More than 4 positive things.

What’s in Budget 2021 for property market? There are definitely more than 4 things. There could be more as we go along I believe but for now, here are some good news, especially to targeted  groups.

#1 – The RM500,000 or below starter homes likely to boom

Buyers for first homes priced below RM500,000 will get FULL STAMP DUTY exemption on Memorandum of Transfer (MOT) and loan agreement. This is effective for agreements inked from January 2021 all the way to December 2025. If this is not attracting first time home buyers to buy, I am not sure what else would. Perhaps the only stumbling block would be the downpayment which may not be easy. 10% for a RM400,000 home is still RM40,000.

How much could one save if they bought a RM500,000 home for the stamp duty? Enough for a budget trip for two to Japan for 7 days… Alternatively, enough downpayment a brand new car priced from RM90,000 or lower.

#2 – Rent-To-Own scheme for FIRST-TIME home buyers only

Government to cooperate with selected financial institutions to provide a Rent-to-Own scheme. This programme will be implemented until 2022 involving 5,000 PR1MA houses with a total value of more than RM1 billion and reserved for first-time homebuyers. This is a SUPER important measure in my opinion. Many may want to buy a home but may not yet have enough downpayment. With this scheme, the buyer can start to become more responsible and may have a chance to own a home a few years down the road.

#3 – Stamp Duty exemption on stamp duty exemption on loan agreements and transfers given to rescue contractors and original buyers of abandoned houses

This has been extended for another five years. Finance Minister Datuk Seri Zafrul Tengku Abdul Aziz said, “This exemption is for the sale and purchase agreement completed from Jan 1, 2021 until Dec 31, 2025 for abandoned housing projects approved by the Ministry of Housing and Local Government.”

#4 – New homes under People’s Housing Programme and Rumah Mesra Rakyat

RM1.2 billion will be provided to build up to 14,000 houses under the People’s Housing Programme and RM315 million to build 3,000 units of Rumah Mesra Rakyat by Syarikat Perumahan Negara Berhad (SPNB).

Only 4 things mentioned above on Budget 2021 for property market. Where’s the 5th one? Actually, the above is to stimulate the property market and it is targeted at first time home buyers which will be a very big group. By the way, majority of buyers are buying RM500,000 priced homes or lower and not homes priced above RM500,000. Thus, if the property market moves, this will create a lot of positive stimulus effects to the construction industry too. In other words, these 4 things done right will create more than 4 benefits listed above.  Happy thinking about it, seriously. (I meant first-time home buyers)

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Budget 2021 highlights for the rakyat. Smile?

This is the budget 2021 highlights for the rakyat. It means what I personally think will be money into the pockets of the people and the spending will become a multiplier effect to the economy. Please understand that no measures taken should be on BLANKET basis because if we give money to people who still have money, that money will be kept into the bank and that’s the end of any multiplier effect to the economy.

Someone also mentioned that the stamp duty exemption for property purchase should be extended to the secondary market as well. Actually, this is not such an easy decision to balance. Stamp duty exemption meant the government will lose the revenue but if they do this for the primary property market, then it can stimulate the construction sector and this will create multiplier effects to the economy. The focus is now on how to move the economy again.

Photo by Vincent Gerbouin on
Pexels.com

Here are the budget 2021 highlights:
(If you like the full one, there’s one at FreeMalaysiaToday.com)

Allowances for civil service

Increase of allowance from RM6 to RM8 an hour for 1,900 volunteer firefighters
One-off payment of RM500 for 40,000 recipients of the Pingat Jasa Pahlawan Negara
Special RM600 for civil servants Grade 56 and below
For retired civil servants and veterans with no pension, the government will provide RM300 special aid

Wage Subsidy

Government to allocate RM1.5 billion to extend wage subsidy programmes for another three months, particularly in the tourism sector

Kwasa Damansara

EPF will proceed with Kwasa Damansara development (GDV of RM50 billion over 20 years).  This is expected to generate 100,000 jobs.

Important catalysts

Rapid Transit System (JB – SG) and MRT Line 3 in Klang Valley will CONTINUE

High Speed Rail (HSR) will CONTINUE (if Singapore agrees yeah)

RM3.8 billion for bridges and roads in several states in Malaysia

The Industry which needs help: Tourism (just need to be ready when it comes back)

RM50 million for retraining programmes for 8,000 airline staff
500 jobs for Orang Asli and local communities to become tour guides in all national parks
RM50 million for the maintenance and restoration of tourism facilities nationwide
RM35 million for the Malaysia Healthcare Travel Council
Special RM1,000 grant for traders, taxi drivers, e-hailing drivers and tour guides in Sabah
Human Resource Development Fund levy exemptions for companies in the tourism sector and those still affected by Covid-19 for six months

My30 Unlimited travel pass expands to Penang and Kuantan Pahang.
(what is My30?. Earlier article here)

Property Market
(mostly targeted at first-time home buyers)

Stamp duty exemption for first homes up to RM500,000
RM1.2 billion for the provision of homes for low-income house buyers
RM500 million for 14,000 PPR units
RM315 million for 3,000 Rumah Mesra Rakyat
RM125 million to repair dilapidated low-cost homes
RM310 million for civil service homes
Government to work with selected financial institutions for a rent-to-own scheme involving 5,000 PR1MA homes

Fresh Graduate Internship Programme

RM1,000 per month for three months for employers who hire fresh graduates for apprenticeship programmes

Tax exemptions (means more money back into the economy)

1% decrease in income tax for those earning between RM50,001 to RM70,000 per year
Further tax exemption for companies who hire senior citizens
Tax exemption for disabled spouse increased from RM3,500 to RM5,000
Extension of tax exemptions for companies who hire former convicts and drug addicts

EPF related

Contribution for employees reduced from 11% to 9% for 12 months beginning January 2021
RM3,000 tax exemptions for contributors to private retirement schemes
EPF to allow contributors to withdraw from Account 2 to purchase insurance
Government to allow contributors to withdraw RM500 a month from their EPF Account 1 for 12 months from January 2021

Bantuan Sara Hidup

To be renamed Bantuan Prihatin Rakyat, with RM6 billion allocated to benefit 8.1 million people
Households earning less than RM2,500 will receive RM1,200 to RM1,800, depending on the number of children they have
Households earning between RM2,501 to RM4,000 will receive between RM800 to RM1,200, depending on the number of children they have
Households earning between RM4,001 to RM5,000 will receive between RM500 to RM750, depending on the number of children they have
Single individuals earning RM2,500 and below will receive RM350. Age limit for this is also lowered to 21 years

— end of budget 2021 highlights —
(Full budget 2021 highlights, do drop by FreeMalaysiaToday.com)

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Media Statement by PropertyGuru: Budget 2021 Prioritises The Welfare of Malaysians

Budget 2021 Prioritises The Welfare of Malaysians

First Time Home Owners & B40 Gain To Benefit Right Homes, Right Location To Ease Overhang in Market by Sheldon Fernandez, Country Manager, PropertyGuru Malaysia

We are happy to see that the Budget 2021 prioritises job creations and economic drivers. There have been many initiatives that support the creation of jobs such as MyStep which allocates RM700 million to offer up to 500,000 contractual jobs in the civil service and government linked companies (GLCS). As well as RM 1 billion allocated for upskilling and reskilling programmes.

It is also heartening to see that the unemployed and senior citizens such as those in the B40 are not forgotten, with tax breaks for companies hiring senior citizens as well as the National Employment Council being set up to be chaired by the Prime Minister to coordinate job creation, upskilling and employee training.

It is imperative to foster job creation and to stimulate economic growth which in result, will also impact the property market.

To encourage first-time home owners, full stamp duty exemption for properties priced RM500,000 and below is a welcomed move especially with 81% of Malaysians intending to purchase a home by end 2021 according to PropertyGuru’s recent survey. According to the same study, home seekers aged 22-29 years old and renters are most likely to buy property post-MCO, with 47% and 51% respectively sharing that the outbreak would not delay their potential purchases.

RM1.2 billion has also been announced for the development of low income households. Rent-To-Own programmes for first-time buyers have also been prioritised with the government working with financial institutions, which will involve building 5,000 PR1MA homes worth over RM1 billion.

With good intentions to help both the B40 and low income households, it is imperative to note that the right homes in the right locations need to be developed to ease the overhang that is currently being faced by the market.  NAPIC revealed that the Malaysian property overhang climbed 3.3%, with houses priced between RM200,000-RM300,000 leading the supply.

— end of media statement —

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Budget 2023 and property market Malaysia

I think every media is reporting on Budget 2023 and continue to gain lots of attention on it too. As usual, there are the supporters who said everything great about Budget 2023 and there are also the other side which nothing would make sense unless they are the ones doing it. It matters very little yeah because both sides do not determine if we live well, earn well or even invest well. When we are successful in our investments, it depends on what WE do and not what both sides say or do yeah.

Here is that
official site about Budget 2023. MOF’s website.
 This is another version of the Budget 2023 which I think is quite comprehensive even if it gives a summary of the
Budget 2023. Edgemarkets.com
  Alternatively, another one from
FMT too. Click here to view.
 This is also source for Budget 2023 readings.

Meanwhile, the below would be some of the things which will be directly related or indirectly influencing the property market too.

The whole budget is RM40 million higher than the one for 2022. It has to be larger every year yeah since the economy is also supposed to be growing yearly. Plus the fact that budget will need to be expansionary in nature to help the economy during this recovery period too. We can see interest rates are also increased a little to ensure growth is not derailed if high interest rates were introduced like the US for example. (Yes, the US is already in technical recession in case you did not yet read)

Construction Industry

RM1.1 billion for repair and maintainance of all schools including vernacular and religious schools.
RM430 million to construct 5 new schools in Sabah, Sarawak, Terengganu, Cyberjaya and Selangor.  (Yes, I wonder the same; just 5 new schools?)
RM188 million to set up 10 Kemas daycare centres.
RM562 million to implement the Sabo dam project.
RM510 million to improve road infrastructure to Pengerang.
Pan Borneo Highway to be completed by 2024.
RM11.4 billion for maintenance and repair of existing government buildings.
RM5.2 billion for maintenance of state roads.
RM150 million for the development of border towns near Thailand and Kalimantan.
RM3.7 billion for small and medium projects across the nation.
RM500 million on G1-G4 infrastructure projects.
RM42 million to upgrade police quarters.
RM118 million for the maintenance of armed forces homes.
RM28 million to upgrade prison staff quarters.
RM420 million to repair dilapidated hospitals and clinics.
RM1.8 billion to build new health facilities and procure medical equipment.
RM15 billion for flood mitigation initiatives.
RM2 billion to build retention ponds.
RM500 million to widen rivers in Kelantan.
RM3 billion for Green Technology Financing Scheme (GTFS).
RM150 million from Khazanah Nasional Berhad to support development of green projects.
RM216 million to clean rivers nationwide.

Domestic consumption (more money to spend means business can earn more money and hire more people)

In total, Putrajaya will spend RM10 billion in welfare and Bantuan Keluarga Malaysia (BKM) aid.
RM2.5 billion in welfare aid benefiting 450,000 households.
RM2,500 in BKM aid for households earning less than RM2,500 monthly.
Up to RM1,250 BKM aid for singles and RM3,000 for single parents.
One-off RM500 incentive for female BKM recipients who give birth in 2023.
RM7.8 billion for BKM which will benefit 8.7 million people.
RM1 billion in welfare aid for the elderly.
RM1.2 billion to support disabled people to be financially independent.
RM10 million in e-hailing vouchers for the disabled.
RM8 million for social support centres.
RM734 million for MySalam programme. This will benefit 1.5 million people from the B40 group.
Voluntary Employees Provident Fund (EPF) contributions raised from RM60,000 to RM100,000 a year.
RM21 million in grants for operators of welfare homes.
Limits for Amanah Saham Bumiputera (ASB) and ASB2 savings to increase to RM300,000.
Government to provide incentives to establish more daycare centres for the disabled.
RM120 million for Kasih Suri Keluarga Malaysia programme, benefiting 200,000 housewives.
RM1.5 billion for RM100 increment for all civil servants between Grade 11 to Grade 56.
RM1.3 billion for one-off RM700 special aid for 1.3 million civil servants under Grade 56.
RM350 one-off aid for one million retired civil servants.
Aidilfitri aid for civil servants increased to RM600.

For Future, actually. When businesses do better, they hire more people too.

RM235 million to support the development of female entrepreneurs.
One-off RM1 billion grant to all registered MSMEs and taxi drivers. To benefit one million recipients.
RM45 billion Semarak Niaga funds for entrepreneurs.
RM10 billion in funds from Bank Negara Malaysia (BNM) to automate and digitise SMEs.
RM200 million to boost income and productivity of smallholders.
GLCs and GLICs to invest up to RM50 billion in 2023.
Government-linked companies (GLCs) and government-linked investment companies (GLICs) to invest RM50 billion in 2023, including RM45 billion in direct domestic investments.
RM100 million to support development of local technology companies.
RM10 million in matching grants allocated to help SMEs.
RM800 million to provide RM100 e-wallet credit for 8 million people in the M40.
Petronas will contribute RM2 billion to the National Trust Fund (KWAN).
RM15.1 billion allocated for the higher education ministry.
RM3.8 billion for scholarships and education loans.
RM6.6 billion for Bumiputera education loans.
RM6.7 billion for TVET training and education.
RM180 million to fund TVET training, benefitting 13,000 trainees.

More jobs means more potential property investors (even if only a small percentage may buy)

The MyStep programme will provide 50,000 jobs including 15,000 in the public sector and 35,000 in government-linked companies (GLCs).
RM750 million to upskill 800,000 workers.
RM100 million for Mitra to develop entrepreneurs.
Socso to provide incentives for employers to hire the disabled, Orang Asli, ex-convicts and women returning to work. The incentive worth up to RM750 a month will be given for three months per employee.
Socso will provide incentives for employers to hire jobless youths.

Our tax remains high and GST would have helped ACTUALLY (yes, this is for those who thinks SST is better…)

Personal income tax reduced by 2% for those earning between RM50,001 to RM100,000.
Income tax exemptions of up to RM3,000 for Tadika and daycare fees.

When more tourists are coming, get ready for a rise in need for accommodation; property market boost

RM200 million to promote tourism recovery.
RM90 million in grants to promote tourism activities.
New chartered flights to and from East Asia and the Middle East.
RM10 million to promote eco-tourism.
RM25 million in incentives to promote domestic tourism.
RM500 million in tourism financing from BNM.
RM10 million for the ThinkCity initiative in Kuala Lumpur.

Public transport will always be key to property demand. Driving cannot be the only option.

RM180 million to improve bus services in Melaka, Kedah, Kota Kinabalu and Kuching.
Continuation of My50 RapidKL monthly pass to benefit 180,000 users.
RM16.5 billion for major transport infrastructure projects.
RM50.2 billion for the MRT3 project.
RM1 billion for the maritime and logistics industry.

Yes, finally the most DIRECT one to the property market

Stamp duty discounts of up to 75% for houses worth between RM500,000 to RM1 million.
RM10 stamp duty for properties transferred between family members.
RM367 million to build people’s housing projects (PPRs), to benefit 12,400 new residents.
RM3 billion for housing credit guarantees.
RM40 electric bill subsidy to be extended.

Conclusion

I share this conversation with everyone again about the property market’s future.

Friend:  I think I want to invest into Singapore and not Greater KL properties.

Charles: Good idea. What’s the reason?

Friend: I think Singapore’s property market would continue to increase in prices.

Charles: I also agree with this assessment too. How many years do you think Greater KL property market will need to reach the current Singapore property price level?

Friend: Easily 10-15 years I think.

Charles: You have also just answered why Greater KL property market is a good place to invest too.

If you do not get the idea, it’s okay. There are so many other investments which everyone can do and it does not need to be into the property market.

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Budget 2023 Wishlist: Call for The Government to Alleviate the Homeownership Struggles of Malaysians

Statement to be attributed to Sheldon Fernandez, Country Manager, Malaysia (PropertyGuru.com.my and iProperty.com.my)

Kuala Lumpur, 22 September
– As we await the announcement of Budget 2023 this coming 7 October, PropertyGuru Malaysia, Malaysia’s leading property marketplace, would like to take the opportunity to share key priorities on behalf of the property market for the government’s consideration. These will help further spur the property sector and provide Malaysians with the right support to embark on their homeownership journeys.

The upcoming Budget 2023 is themed on
Strengthening Recovery, Facilitating Reforms Towards Sustainable Socio-Economic Resilience of Keluarga Malaysia
, indicating a focus on elevating Malaysian’s wellbeing, income and social protection, and strengthening the nation’s resilience against future shocks, among others.

More Initiatives Needed to Spur Homeownership

We applaud the government’s move to launch the Malaysia Home Ownership Initiative (i-MILIKI) earlier this year, providing stamp duty exemption for first-time homebuyers. However, based on recent findings in the
Malaysia Property Market Report Q3 2022
, rental demand made a massive 96.83% YoY jump, indicating that potential homebuyers have resulted to renting in the interim, amid concerns of the rising inflation and Overnight Policy Rate (OPR) increase. Economic uncertainties on the back of the overall recovery in the endemic have made potential homebuyers put a pause on their homeownership plans, while many others have raised concerns over affordability.

Considering this, Budget 2023 should be aimed at making homeownership more attainable for lower to middle-income groups. Affordability issues continue to loom as according to
PropertyGuru’s Consumer Sentiment Study (CSS) H2 2022
, 51% of the respondents feel that they are unable to purchase a home without government assistance, while 69% of the respondents have indicated plans to buy a home if the Home Ownership Campaign (HOC) is revived.

Amid affordability issues, the HOC has been a great help for many first-time homebuyers and has successfully encouraged activity in a slowed property market. On top of its continuation, we also see that the rakyat may also benefit from the continuation of HOC extending its terms to the secondary market as well. This would help to create demand and further encourage homeownership, providing more options and price points for potential homebuyers if sub-sale properties were included. As part of this, we also hope that the government can consider reducing or removing the stamp duty for residential properties of RM500,000 and below for all Malaysians – to further boost the market.

Property overhang issues also continue to be a concern in Malaysia, where a
recent study
 by Malaysian Industrial Development Finance Berhad (MIDF) stated that residential overhang units increased to 35,592 units in Q1 2022 as compared to 27,468 units in Q1 2021. While the government is working towards providing targeted subsidies to the rakyat, aspiring homeowners would benefit from more schemes similar to the
MyHome Scheme
, which is

aimed at allowing first-time buyers in Malaysia to attain low-cost housing through government subsidies. To address the property overhang issue and further promote an inclusive property market, now is an opportune time for the government to look into providing more schemes with offered subsidies for each home sold. This can be done by giving an up-front subsidy to developers that is inclusive of buyers’ deposit fees and any qualifying payment amount needed to reduce the monthly repayments for homebuyers, and ultimately encouraging them to resume their delayed homeownership plans.

Advancing Environmental Efforts

Amid post-pandemic recovery, the rakyat was also struck by severe floods nationwide, negatively impacting thousands of Malaysians’ livelihoods, savings, and living quarters. The flooding resulted in approximate losses of up to RM6.1 billion, according to the
Department of Statistics Malaysia
 (DOSM), with RM1.6 billion of housing damages recorded.

These events have highlighted a new factor of consideration among Malaysian homebuyers, who, according to the CSS H2 2022, are now worried about how natural disasters and environmental issues will affect their homes in the future. 92% of the respondents in the study highlighted flooding as their main concern, while 83% marked landslides as a particular concern.

While we hope that Budget 2023 will help alleviate the current challenges faced by Malaysians and the property sector, we must not lose sight of ongoing environmental issues, preparedness in facing natural disasters, and the equally crucial long-term agenda of promoting sustainable urban living as well.

In accordance with the 12th Malaysia Plan, which prioritises green and resilient urban development, we urge the government to consider incentivising developers to adopt accredited green certification tools to promote green development in the country and continue to push different industries to do their part in becoming more environmentally friendly. While the impacts of global warming are irreversible, now is the time for organisations and individuals to come together to slow down the effect and reduce the risk of flash floods and landslides resulting from climate change.

However, we note that the cost of constructing green buildings may be higher than traditional buildings, which might deter potential homebuyers from making the purchase. Hence, the government may also consider providing stamp duty exemption for homebuyers who purchase green-certified properties to encourage demand.

We look forward to the announcement of Budget 2023, which will take place on 7 October, and hope that these factors will be taken into consideration not only for the property sector but for the benefit of Malaysians and its future generations. We at PropertyGuru are ready to collaborate with the government and provide them with insights that can help drive Malaysia’s recovery and sustainable growth of the nation’s property market.

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Budget deficit is on track. SST is helping.

Nomura Global Research has just downgraded Malaysia again. Nomura Global Research advises its clients to ‘underweight’ on Malaysian equities. (In brief, they are asking investors to sell Malaysia and look elsewhere) It said, “Our economists believe there is a high risk of fiscal slippage and the possibility of a sovereign ratings downgrade that could trigger more capital outflows.”
Full article in TheEdgeMarkets.com here.

I disagree with Nomura Global Research definitely but I am just a normal Malaysian. Let’s hear what our Finance Minister Lim Guan Eng said. He disagreed with Nomura’s views about Malaysia’s worsening budget deficit from 3.7% to 3.9% for 2018. In fact he said the budget deficit of 3.7% for 2018 and 3.4% for 2019 is achievable. He pointed out that it’s true that abolition of GST has left a deficit of RM20 billion for the government. However, SST collections had exceeded projections. Instead of RM4 billion for the period of 1st September to 31st December 2018, the collection was RM5.4 billion instead.
Article in FreeMalaysiaToday.com here.

Lim then reminded Nomura that even international rating agencies such Moody’s, Standard & Poors and Fitch are still maintaining Malaysia’s Investment Grade rating of A3 or A-.
 (Yes, I said the same thing many times too. Earlier article here.)
 Beyond just the deficit, Nomura also mentioned that Malaysia was too dependent on Petronas’s revenues to bankroll its budget.  Answering this, Lim said that in 2009, Malaysia’s reliance on Petronas was 41.3% of its income. However, this has been reduced to just 10.5% currently.
Please refer to the full article here.

Really thinking of following Nomura’s recommendations? As long as we have found a much better market to invest in, why not? Else, buy where we are more familiar instead. Just a reminder, the stock market rout did not happen just in Malaysia and did not even start from Malaysia… However, a look around the stock market will reveal that many counters have already lost a lot of its market capitalisation and some are becoming attractive when compared to its historical PER. Happy investing yeah.

Source of featured image in this article was from
essayontime.com.au

written on 11 Jan 2019

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Budget for the elderly. I think many ageing nations will face this. (Malaysia too…)

In case you have not heard or read yet, Mr. Heng Swee Keat (current Singapore Finance Minister) is said to be the next potential Prime Minister of Singapore.
Who said it? Article here from South China Morning Post
 There are some chatters that the election for Singapore will happen this year (2019).
Article in NST here
Singapore unveils big-spending budget amid election talk
.
 This is the latest annual budget announced by him for Singapore. Finance minister Hweng Swee Keat set aside SGD6.1bill (RM18.37 billion) for the aid of the elderly. Heng described the package as “a gesture of our nation’s gratitude for their contributions and a way to show care for them in their silver years.”

The package included concessions of government-built sports facilities and healthcare plus insurance subsidies. Another SGD3.1bill is for long-term care needs, including subsidies and payouts for severely disables workers. To recognize the founding of modern Singapore’s 200
th
 anniversary, another SGD1.1bill was put aside for handouts. Around 1.4 million low-income citizens are eligible to receive SGD300 each to help with living costs. Others will get benefits in other forms such as pension fund top-ups, tax rebates and education support.
Article in NST here
Singapore unveils big-spending budget amid election talk
.

Total
population above 65 years old in Singapore as at 2017 is
13%. In other words, it’s already very near towards an aged nation. (14% of total population).  Any country with over 7% of its population above 65 years old would be considered an ageing nation. Malaysia will reach ageing nation status (7%) by 2030 / 2035 depending on estimations. Median age for
Singapore is over 40. Statistics here from statista.com
 The main reason is because the total fertility rate per female
Singaporean is now at 1.14 (stats by Department of Stats Singapore here)
which meant that without taking in new population, total population of Singapore will actually be dropping. By the way 2030 is really not that far away. We (Malaysia) should really learn and implement many of the measures which are already done by ageing nations around the world. Perhaps Singapore will be a good example to follow? Happy following.

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Article written and edited by Charles. News article summarised by Dina Batrisyia.

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