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Prior to Budget 2014 (to be tabled next month), speculation has rift up on a few proposal to tighten the rules, especially on property sector. Following the outcry from public stating the alarming high property prices, measure should be taken to tackle the issue before bubble was formed. The Bubbling Biz... Among the measures being proposed were: Non-other than Real Property Gain Tax (RPGT) Higher Stamp Duty : ~ 5% of purchase price for 3rd property ~ 7.5% for 4th property ~ 10% for 5th property onward Loan-to-Value ratio reduce to 60% for 3rd property onward While the above info need to be ascertained further, some banks already implemented their in-house ruling. What's that? It was to limit the maximum term for refinancing of property to 10 years . Yes. Sooner or later, all of the banks will follow. * Please note that the above 3 rules need to be ascertained further. Stay tune!

Ever since the property boom started in 2009, right after the global financial crisis, investors were laughing to the bank. But, can these sustain until next year? Many analysts doubt so. Why? The most crucial determining factors might uncover itself in the next few months, approaching year end. In short, we have summed out to the below 3 critical factors: Banning of DIBS This is not a secret anymore. Speculation rife up recently, saying that BNM may ban the Developer Interest Bearing Scheme (DIBS) by year end. BNM is studying the implications of DIBS which benefiting speculators more than serious buyers. Note: Singapore already banned such scheme few years back. Interest Rate hike BNM also may revised the Overnight Policy Rate (OPR), which determine the cost of financing in the country including Base Lending Rate (BLR) for mortgage loan. A 25 basis points hike was expected. This will affect all type of loans, except fixed interest loans. Let's get prepare for higher monthly loan ...

When everyone thought that US and the world will be better if Obama won his presidential re-election again, world equities markets today declines with US being the most serious market by dropping more than 2%. What's the reason? Answer: Fiscal Cliff  ? Hmmm... Then, what is fiscal cliff actually which many of us on the street do not even heard about this new term before. No worry, Finance Malaysia blog did his homework over here. Share this out if you like. Understanding Fiscal Cliff... The US fiscal cliff refers to the effect of a series of enacted legislation which, if unchanged, will result in tax increases, spending cuts, and a corresponding reduction in the budget deficit. With Obama retaining the presidency, it sends the signal that it's US government policies will pretty much stay the same as previous 4 years. Ben Bernanke will stay as Fed chairman, which also meaning that the open-ended liquidity and bond buying programs will continue, fueling risk taking appetite of e...

Hmmm... Yup, the title is correct. We at Finance Malaysia blog would like to hear the views from Foreign analysts only this time. Why? Because they tend to be more independent (we think), and we know that readers like you can easily access to local research reports. So, we made the decision to only show you what is written by foreign analysts as below: Phillip Capital Management : An earnest & all-around Budget? "People’s livelihood, affordable housing and tax issues topped the pre-budget wish lists. Weeks before the announcement, there were many discussions about the Budget 2013 in the media and various conjectures about the budget outcome. Everybody in town was anxiously waiting for the Prime Minister’s speech to reveal the Budget 2013, hoping the wish in one’s heart and mind will come true. TV camera shots have shown that people have been in high spirits cheering for the Santa Claus during the speech. We think Barisan Nasional has successfully drawn up the budget ...

General election is around the corner. External environment was not so promising, following the no ending of European debt crisis, world economic slowdown, and recent tension between China and Japan. I believe all of these would be some key factors being taking into consideration to formulate the Malaysia Budget 2013. Goodies? Bonus? Cash handout? Themed as " Prospering The Nation, Enhancing Well-Being of the Rakyat: A Promise Fulfilled ". Our prime minister, who is also Finance Minister, tabled the 2013 Budget at Dewan Rakyat yesterday. Over here, Finance Malaysia blog would only touches on some key points: Economic growth projected to expand between 4.5% - 5.5% Federal Government's revenue in 2013 is estimated to increase to RM208.6 billion Continuation of BR1M of RM500 to households earning not more than RM3,000 a month and also extended the aid to cover a payment of RM250 for single unmarried individuals aged 21 and above, earnings not more than RM2,000 a month RM 1...

Property prices had been skyrocketing since 2009, creating more millionaires in Malaysia. The key factors behind the increasing properties prices were low interest-rate environment, attractive housing loan packages and ample of liquidity in financial system. These had prompt investors ,and general public too, to invest into properties searching for better return among all the investment instruments. Oppss... Favorable Real Property Gain Tax (RPGT) is one of the factor too. While creating millionaires, many middle and low income groups are facing difficulties to come out the higher capital required to purchase their homes. Genuine buyers , who are first-time house buyers, were being forced to delay their buying and ended up renting. This will resulted in widening wealth gaps between Malaysians. As such, government had proposed to increase the quantum of RPGT to counter the potential socioeconomic backlash. (see attachment) Curbing speculations? Traditionally, there are two important to...

During the recent Budget 2012 announcement, one of the controversial issue is the increment of 1% contributed by employers to EPF effective 1st January 2012. This will bring the minimum contribution rate by employers to 13% from 12% currently for those earning less than RM5,000 per month. The Fatter EPF While employees are welcoming the new rules, many employers are voicing out their concern on the extra burden being bear by them. "This is not fair to us, especially during current scenario where businesses are bracing for more challenging times ahead", says one of the concerned boss. Although there is some sort of tax-relief for employers who contribute more, bosses are still unsatisfied by the new ruling which adds to their fixed costs. What is the rationale behind? The reason is somewhat very good, that is "to equip Malaysians more retirement funds for their golden age" after recent facts shown that Malaysian generally fully utilized their EPF monies between 3-10...

Well, well, well... The newly announced Budget 2012 seems to be a very holistic one, which covers almost everyone (even the opposition MPs). In the budget, a total of RM232.8 billions was allocated to implement all Government development plans, which include the projects and programs under various plans, focusing on the well-being of the rakyat . But, there are a few interesting questions that Finance Malaysia would like to highlight here. 1) Is it too optimistic? As we all know, the external environment is becoming more challenging once again due to slowdown in US, Europe and Japan (if not double-dip recession). This would definitely impact Malaysia as manufacturing sector still playing a crucial role in our country's growth. While IMF is revising downward the global growth next year, our Government is projecting a 5 - 5.5% growth this year, and 5 - 6% for 2012. I think we should be very happy if Malaysia can grow more than 4.5% for 2011 and 2012. 2) Budget Deficit to come down...

"If Tigers were meant to fly, they would be born with wings" What do you think? Congratulations, AirAsia won another award - " The Best Airline Advertisement " (if there is such an award)!!! Interestingly, both airline has many similarities. Both are budget airline Both are headed by Tony (AirAsia's Tony Fernandes and Tiger Airways' Tony Davis) Below is the full-story of the battle: Fernandes : "We're Asians, not a bunch of white guys running the airline" Davis        : "It was a racist remark" Fernandes : "It was a tiny carrier " Davis        : "Tiger aims to be among the top three global airlines" < Then, the famous advertisement popped up in Singapore newspaper > Davis        : "It's no wonder some of our competitors are getting so rattled " Because of the interesting advertisements from AirAsia, DiGi, Maxis, Celcom... I like reading advertisemen...

One of the most controversial project announced in Budget 2011, Warisan Merdeka claim the top spot. Dubbed as Malaysia's tallest building with 100 -storey tall, the 10 years project will kick-start next year. However, many quarters lamented the project as lavish, unnecessary, and would worsen the famous KL city traffic. In respond to this, PNB's group chief executive Tan Sri Hamad Kama Piah hold a press conference to address the issue. Among the key phrases taken are: "We are not taking government's money (for this project)" "PNB had the capability to finance the project through internally generated funds" "PNB existing head quarter will be 30 years old when the project is completed " Show me the $$$... Yes, I believe PNB would not use government's money for this project. Anyway, what does it meant by internally generated funds? As we know, PNB managed a range of Amanah Funds in the country.  Yes, I believe PNB would not use our Amanah...

First Home Scheme was being introduced by the Government in Budget 2011 as below to encourage home ownership among Malaysians: Specially cater for first-time house buyers with monthly household income below RM 3,000 . 100% loan for houses priced below RM220,000. 50% stamp duty exemptions on instruments of transfer on houses below RM350,000. 50% stamp duty exemptions on loan agreement instruments on houses below RM350,000. To facilitate the 100% loan, Cagamas Bhd (national mortgage corporation) will provide guarantee on the 10% down-payment to eligible house buyers. Signals sent-out by Government: 1. Enabling first-time buyers to afford their first home. 2. Developers should build more houses which is affordable for such categories. Advise to first-time house buyers: 1. The securing of such a loan is still subject to how much the banker willing to lend you. 2. 100% loan means higher monthly repayment for borrower. 3. Always buy within your means , not because of such scheme. How a...

Yahoooo!!! Budget 2011 announced that ordinary phones would be exempted from the 10% sales tax . Yes, we can expect that the prices of mobile phones to drop a little bit, although not much, especially for first time buyers. Would iPhone and other smart-phone's prices drops? To be exact, the removal of sales tax is only meant for " ordinary phones ", not smart-phones, as the latter already DO NOT have any sales tax. So sorry for those iPhone seekers out there. For me, this will only benefiting those low income earners. Yet, I strongly agree with it. Instead, the 10% sales tax removal should first be on ordinary phones in the first place (anyway, now is not too late). In today's era of connectivity and popular usage of social media (etc. Facebook, Twitter...), smart-phones and those with Internet applications, was the preferred choice for many of us. Thus, I do not view this announcement as a gift to many of us. What a disappointed happiness for me.

* Please take note that this blog is for reading pleasure only, and NOT intended to offend any party. Below are some questions posted to Finance Malaysia (FM), with some interesting reply: Q    : Let's start off with the famous KL MRT project. Any comment? FM : Well, this is definitely a good public transport reformations for KL citizen. However, please bare in mind that the extensions of two existing LRT lines still not yet started. Implementation is problem, not project . Q    : How about the development of the Malaysian Rubber Board land in Sg. Buloh by EPF? FM : The project costs RM10bil for 15 years. I don't know when EPF (Malaysians' retirement fund) role has changed to being a developer? Q    : Malaysia's tallest building - 100 -storey Warisan Merdeka. Is it necessary? FM : So that Osama can either choose this or Twin-towers. Haha. Since EPF can be a developer, why not PNB? Malaysia Boleh spirit for all... Q    : Existi...