Economic News

[Manhattan]

An executive summary of what is happening, mostly we already know.

http://theindependent.sg/business/t...-the-property-landscape-in-iskandar-malaysia/

 

[Manhattan]

PTP is expanding.

http://www.hellenicshippingnews.com...an-rm8-6-billion-on-new-berths-and-equipment/

 

[Investor888]

Lee Hsien Loong has publicly admitted the Singapore government grave flaw in not noting PTP flourishing into a mega port.

From nowhere, PTP has snatched a considerably market share from PSA and is now top 20 in the world in terms of volume. Truly amazing.

Johor economic transformation is amazing. I just got back from a ride around Nusajaya and the whole place is developing very very fast compared to just 5 years ago when roads were almost empty.

 

[snowbird]

Malaysia Unexpectedly Cuts Rate to Shield Growth as Risks Mount

Bank Negara Malaysia has unexpectedly reduced the Overnight Policy Rate (OPR) by 25 basis points to 3% at its Monetary Policy Committee (MPC) meeting today.
This move could see banks lowering their lending rates and making it cheaper for eligible consumers and companies to take loans.
Correspondingly, the saving rates could also go down.

http://www.bloomberg.com/news/artic...dly-cuts-rate-to-shield-growth-as-risks-mount

 

[sgtsk]

Lee Hsien Loong has publicly admitted the Singapore government grave flaw in not noting PTP flourishing into a mega port.

From nowhere, PTP has snatched a considerably market share from PSA and is now top 20 in the world in terms of volume. Truly amazing.

Johor economic transformation is amazing. I just got back from a ride around Nusajaya and the whole place is developing very very fast compared to just 5 years ago when roads were almost empty.

It was reported that some 70% traffic passing trough Malacca straits was related to China. To me, the biggest mistake Singapore can make is to choose side against China in the geopolitical contest in the region and the world.

 

[sgcount]

Malaysia Unexpectedly Cuts Rate to Shield Growth as Risks Mount

Bank Negara Malaysia has unexpectedly reduced the Overnight Policy Rate (OPR) by 25 basis points to 3% at its Monetary Policy Committee (MPC) meeting today.
This move could see banks lowering their lending rates and making it cheaper for eligible consumers and companies to take loans.
Correspondingly, the saving rates could also go down.

http://www.bloomberg.com/news/artic...dly-cuts-rate-to-shield-growth-as-risks-mount

What does this mean? Bank loan interest will drop?

I read elsewhere some people further interpreted the RM currency will drop some more. Is this possible?

Doesn't sound good in the longer term for foreign investors as it means the value of their properties is reduced.

 

[snowbird]

What does this mean? Bank loan interest will drop?

I read elsewhere some people further interpreted the RM currency will drop some more. Is this possible?

Doesn't sound good in the longer term for foreign investors as it means the value of their properties is reduced.

Bank Negara had already in their statement stated the reason for this unexpected rate cut -
Due to obvious deteriorating fundamentals and increasing signs of moderating growth momentum in the major economies and gloomy global growth prospects.
Whether this statement sounds good to you or not, you go figure it out.
http://www.thestar.com.my/business/...opr-to-3pct-at-its-monetary-policy-committee/

As for the fate of the RM exchange rate, I have already mentioned this earlier that from next week, Bank Negara will be using a new methodology which reflects underlying trades during the day instead of quotations from selected banks.

 

[cow138]

So what's the direction of the ringgit going forward?
Generally if the country drops it's interest rates, currency will generally weaken, true?

 

[snowbird]

So what's the direction of the ringgit going forward?
Generally if the country drops it's interest rates, currency will generally weaken, true?

When Central Bank cuts interest rates, it is usually a sign that the economy is gloomy and is about to or falling into recession.
In the near future, you may be able to negotiate for refinancing your loans at a lower rate.
However, for those who placed their $$$$ into FD, expect a corresponding lower returns.

There are so many factors that can affect the value of the RM.
Crude oil and natural gas prices, commodity prices, political situation, export data, foreign funds movement, etc, while next week, BNM will be using a new method to determine the RM exchange rate.......so sit tight and watch like a hawk!

 

[sgcount]

When Central Bank cuts interest rates, it is usually a sign that the economy is gloomy and is about to or falling into recession.
In the near future, you may be able to negotiate for refinancing your loans at a lower rate.
However, for those who placed their $$$$ into FD, expect a corresponding lower returns.

There are so many factors that can affect the value of the RM.
Crude oil and natural gas prices, commodity prices, political situation, export data, foreign funds movement, etc, while next week, BNM will be using a new method to determine the RM exchange rate.......so sit tight and watch like a hawk!

This may be slight good news for Malaysian property investors? But I doubt they will save a lot.

Anyway, those who are considering entering the market might have problems also as banks have tightened their loans.

I was speaking to a Malaysian bank rep and she told me the oversupply of properties coming up in parts of Malaysia are making banks extremely cautious in their lending. Apparently, Johor has the highest oversupply vs demand among the various Malaysian states!

 

[xebay11]

This may be slight good news for Malaysian property investors? But I doubt they will save a lot.

Anyway, those who are considering entering the market might have problems also as banks have tightened their loans.

I was speaking to a Malaysian bank rep and she told me the oversupply of properties coming up in parts of Malaysia are making banks extremely cautious in their lending. Apparently, Johor has the highest oversupply vs demand among the various Malaysian states!

Just repeating what I said and saying all along. My views are gathered through careful studies, experience and years of being in and out of Johor starting with my father.

 

[sgcount]

Just repeating what I said and saying all along. My views are gathered through careful studies, experience and years of being in and out of Johor starting with my father.

Which part or views are you referring to here? The property oversupply in Johor?

Good for you.... If you had been here in 2013 to warn, you might have "saved" some Singaporean investors!

 

[Frodo]

Which part or views are you referring to here? The property oversupply in Johor?

Good for you.... If you had been here in 2013 to warn, you might have "saved" some Singaporean investors!

Human nature being what it is, sometimes the herd mentality (esp the optimistic hype and buzz generated at road shows or property fairs) will drown out any warnings given.

 

[snowbird]

This may be slight good news for Malaysian property investors? But I doubt they will save a lot.
Well, I think you belong to the negative part of the "half glass of water" theory - Hah! only half glass ah? while the positive will go "heng ah, still got half glass!"

Anyway, those who are considering entering the market might have problems also as banks have tightened their loans.

I was speaking to a Malaysian bank rep and she told me the oversupply of properties coming up in parts of Malaysia are making banks extremely cautious in their lending. Apparently, Johor has the highest oversupply vs demand among the various Malaysian states!

For your information, according to Rehda, this year will see more unsold units compare to last year's 30,000 units.
And this is not including resale units already in the market and units bought by "investors" waiting to resell which may add another tens of thousands units!
Most of the unsold units come from states of Selangor, Pahang and Johor.
So, with the gloomy economic outlook, expect the total of unsold units plus resale ones to reach 100,000 units this year.

http://www.theedgeproperty.com.my/content/unsold-residential-units-rise-2016

 

[snowbird]

Which part or views are you referring to here? The property oversupply in Johor?

Good for you.... If you had been here in 2013 to warn, you might have "saved" some Singaporean investors!

Sometimes when you try to caution people, they accuse you of pouring cold water, so how?

 

[Manhattan]

Another duty free zone in johor coming up.

http://www.thestar.com.my/business/...jaya-fcbc-sign-mou-for-jb-trade-city-project/

 

[enjoylife77]

No mention of the date of operation in the article.

 

[Manhattan]

Like whole China rushing to johor, got gold? Hope foshan investors got the Huang feihong spirit.

 

[sgcount]

For your information, according to Rehda, this year will see more unsold units compare to last year's 30,000 units.
And this is not including resale units already in the market and units bought by "investors" waiting to resell which may add another tens of thousands units!
Most of the unsold units come from states of Selangor, Pahang and Johor.
So, with the gloomy economic outlook, expect the total of unsold units plus resale ones to reach 100,000 units this year.

http://www.theedgeproperty.com.my/content/unsold-residential-units-rise-2016

Good article. It's a reality check.

Buy to stay. Don't invest.

Think the above is the best advice.

 

[FHBH12]

What does this mean? Bank loan interest will drop?

I read elsewhere some people further interpreted the RM currency will drop some more. Is this possible?

Doesn't sound good in the longer term for foreign investors as it means the value of their properties is reduced.

Maybank has lowered its loan interest rate.

Thursday, 14 July 2016 | MYT 6:24 PM
Maybank lowers interest rates to 3%
http://www.thestar.com.my/business/business-news/2016/07/14/maybank-lowers-interest-rates-by-20bps/

The RM has also strengthened against SGD

Thursday, 14 July 2016 | MYT 10:10 AM
Ringgit opens higher against US$ Thursday on interest rate cut
http://www.thestar.com.my/business/business-news/2016/07/14/ringgit-opens-higher-against-us$/