If the list of eligibility
requirements for the affordable housing project is anything to go by, many
Malaysians who have registered for PR1MA would have gotten a PR1MA house as
soon as the developers would want to sell it. The problem is, it doesn’t work
that way. In between developers and keen buyers, there lies a role – the banks –
who holds all the cards that decide whether the buyers will have enough money
for the deal. As of today, it seems that all is not good for affordable housing
In Malaysia today the demand for property remains strong even though property prices continue to increase. However, according to statistics from Bank Negara, it shows that applications for housing loans declined during the first eight months of 2015. Does this indicates that the Rakyat wants to buy a home but do not having enough money? High property prices coupled with the increasing cost of living have increased the demand for affordable housing.
Let us take a quick look at some of the key financial events during 2015. Malaysia’s government introduced the implementation of Goods and Services Tax (GST) back in April 2015. The cost of living has grown sharply since with the implementation of GST affecting people on low incomes due to necessities which are mostly liable to GST. Thus, the 1MDB government scandal brought a global economical impact leading to the depreciation of Ringgit Malaysia’s value and caused inflation. Imported goods increased by more than 20%. The continuous instability of political issues in the country has been influencing the country’s economics. Wages are not keeping up with the cost of living, people are trying to reduce unnecessary expenditures and tighten their belt.
Most readers will have been through the 1997 Asian currency crisis but how many of us still remember the panic brought about by the disastrous slump of the Ringgit that lasted for a year? Today, our beloved currency, which is also the Asia's worst performing currency, has dropped almost 18% since last August. Bank Negara Malaysia’s (BNM) Governor, Tan Sri Zeti Akhtar Aziz expressed her confidence in the fundamentals of the Ringgit because, according to her words, it is undervalued. In general, here are some winners and losers behind the Ringgit’s slide.
It’s been barely a month into 2015 and we received news that Budget 2015 has been revised effective on 20 January, adjusting their fiscal deficit target to 3.2% instead of 3%. Is this a result of bad government planning? Do they need to fork out more funds for the upcoming MRT systems? Are they trimming more taxes? (You wish..) Let’s find out why!
So, oil prices are falling drastically and you’re not sure how to feel about it. What was USD110 per barrel of oil in June 2014 is now trading under USD50 per barrel. On one hand, Yay! Cheaper gas! Cheaper flights! Lower inflation! What’s not to like about it? But on the macro side, you’ve also heard some pretty scary things about Malaysia’s future. Like how falling oil prices could bankrupt us, or lead to a recession. But it’s all so difficult to understand. Are we or are we not supposed to be happy about falling oil prices?
If you’re feeling uncertain, fret not. We’ve come up with a layman’s explanation of what will likely happen to Malaysia if oil prices continue to stay low. Admittedly, it’s not the easiest thing to understand. But by the time you’ve finished reading this, you would have gotten a good grasp on subjects spanning economics, federal budgets, and Malaysia’s role in the global oil trade that you can use to feel smarter.
The collective voices of the Malaysian public were made audible in
the scheduling of Budget 2015; an initiative from the government to lend its
ears to the rakyat and their plights. And as if in unison, the one cry that
resonated was clearly the worries on the rising cost of