Malaysia’s central bank placed a limit on the loan-to-value ratio for people taking out third mortgages to buy homes in a bid to moderate “excessive” investment and speculation in urban areas.

A maximum lending limit of 70 per cent will take immediate effect, Bank Negara Malaysia, the country’s central bank, said in a statement today. Banks typically provide loans of as much as 90 per cent of the value of the property.

Malaysia joins Singapore, Hong Kong and China in introducing measures to cool their property markets on concerns that asset bubbles are forming as home prices surge. Singapore in August increased down payments for second mortgages and imposed a stamp duty on property held for less than three years.

“Specific locations, particularly in and round urban centers, have experienced faster growth, both in the number of transactions and in house prices,” the central bank said. “This is further supported by an increase in financing provided for multiple-unit purchases by single borrowers, suggesting increasing investment that is of a speculative nature.”

The Kuala Lumpur Property Index, comprising 88 developers’ shares, has surged 28 per cent this year, outpacing an 18 per cent gain in Malaysia’s benchmark stock index.

The targeted implementation of the loan-to-value ratio is expected to moderate the “excessive” speculation in the property market, it said, without providing supporting data.

Malaysian home sales may rise 26 per cent to a record RM52.9 billion (US$17.2 billion) this year, boosted by low lending rates and liquidity, Yeow Yeonzon, an analyst at Kenanga Investment Bank Bhd., said in a report on Oct. 14. Loans applied for purchasing residential properties rose 32 per cent in August from a year earlier to RM15.4 billion, according to central bank data.

The government in January imposed a 5 per cent capital gains tax on property sold within five years of their purchase. — Bloomberg

SOURCE: Business Times

A MARA Skills Institute (IKM) and a government polytechnic will be built in the Tasek Gelugor parliamentary constituency in Penang under the 10th Malaysia Plan (10MP).

Tasek Gelugor MP Tan Sri Nor Mohamed Yakcop said the RM50mil institute would be built in Tasek Gelugor town while the Politeknik Metro, to cost between RM10mil and RM20mil, would be built in Ara Kuda.

“We have identified the locations for the two projects. Construction is expected to start early next year and be completed in two years,” he told reporters at his service centre in Sungai Dua near Butterworth on Saturday after handing over food rations to 600 recipients of various races, mostly Indians, in conjunction with Deepavali.

Nor Mohamed said the two educational institutions were among new vocational and technical schools which the Federal Government would build in various parts of the country under the 10MP to cater to students who are not keen on academic studies.

“Those who are not interested in subjects like biology, physics, chemistry or history can take up vocational and technical courses which will enable them to find jobs such as chargemen, carpenters or wiremen,” he said.

He urged parents to allow their children to pursue courses in skills subjects if they wanted to do so as there was demand for skilled workers in the country.

Nor Mohamed said skilled workers could earn as much as professionals.

In his speech earlier, he told recipients of the food rations to ensure that their children have a good education.

He said they could earn a good income with a good education and thus be able to help the less fortunate.

Also present were Permatang Berangan assemblyman Shabudin Yahaya, Teluk Air Tawar assemblyman Datuk Jahara Hamid, Tasek Gelugor MIC chairman B.S. Maniam and Tasek Gelugor PPP chairman P. Thayalan.

SOURCE: The Star

THE Northern Corridor Implementation Authority (NCIA) is committed to making Penang the next logistics hub and a dynamic import and export gateway for the Northern Corridor Economic Region (NCER).

NCIA chief executive Datuk Redza Rafiq cited the second Penang bridge, Penang International Airport expansion, Penang Sentral Integrated Transport Hub, Penang Port expansion and Ipoh-Padang Besar double tracking rail projects that would make Penang a main hub for export.

“As such, we strongly believe that Penang has great potential to be developed further into a modern, integrated and green transport and logistics hub.

“This will benefit not only the state but the NCER as a whole,” he said at the inaugural NCIA Public Forum entitled ‘Revisiting, Reviving and Refocusing NCER: Implications on Transport and Logistics’ at Wawasan Open University in Penang on Thursday.

The forum, jointly organised with Socio-Economic and Environmental Research Institute, attracted about 200 participants from government agencies, industry players especially from the logistics industry and university students.

Redza said transport and logistics were crucial and function as key enablers to transform the region into an economic powerhouse.

“They enhance connectivity networks and linkages to spur domestic and international business activity, trading, investment and tourism, besides supporting the industrialisation process.” he said.

With improved transport and logistics services across industries, goods, services and people could move faster domestically and globally, he noted.

“This in turn would help to attract more investment in the NCER, making it a region of choice not only for investors but also tourists, high net worth individuals and skilled talent,” he said.

He added that the Federal Government had taken steps to improve public transportation such as the Land Public Transport Commission (SPAD) to carry out initiatives under the National Key Result Area (NKRA) for urban public transport.

“The people can thus look forward to improved public transportation facilities and services in the near future,’ he added.

Associate professor Dr Anthony Chin from the National University of Singapore, who is also an Associate Professor of Transport Academy and principal researcher with the university’s Centre for Transportation research, was the forum’s guest speaker.

He spoke on subjects concerning Malaysia’s trade competitiveness in relation to logistics and transport facilitation covering maritime, aviation and land modes.

He also suggested ways for the NCER to boost growth, such as by cultivating high value cash crops like the virgin coconut oil, which was highly valued in urban and export markets.

SOURCE: The Star

HOMEDEC, an exhibition for homeowners, will be held at the Penang International Sports Arena (PISA) in Relau from Friday to Sunday.

It is open to the public from 11am to 9pm daily.

HOMEDEC will be a source of inspiration for those who plan to renovate, refurbish or redecorate their homes.

It features new designs, the latest products and innovations for the home.

The highlight of the event is ‘Kids Living’ where there are ideas and settings to show off designs and solutions for a child’s room.

Celebrity designer Eric Leong will provide home tips while feng shui expert Henry Fong will be available to point homeowners in the right direction to maximise qi within their homes.

Tips on choosing the right wall paints will also be provided.

Visitors who spend a minimum of RM100 in a single receipt at the exhibition will be eligible to join a contest to win the grand prize of Cuisinart, KitchenAid and Omega Juicer products worth RM15,000 and also RM5,000 in cash.

A demonstration on making healthy juices will also be held.

Other prizes worth more than RM40,000 are up for grabs.

Visitors who spend a minimum of RM500 in a single receipt will also stand to win a RM20,000 cash reward.

For details on HOMEDEC, call 03-79824668 or 010-2528622 or visit www.homedec.com.my.

SOURCE: The Star

Palma Laguna Water Park Condo is an iconic city oasis within Seberang Jaya. This landmark development is historically Butterworth’s tallest condominium & sky garden. Its central location near to North-South Highway and Penang Bridge, in close proximity to city living essentials, was specifically selected for our residents’ maximum benefit.

The iconic 3-D grid architecture building soars 38 storeys above Seberang Jaya, commanding spectacular views of the straits. Rising majestically above all with breathtaking views of Butterworth & Penang’s skyline.

Iconic. A true landmark. Butterworth’s tallest condominium & sky garden.

Property Project : Palma Laguna Water Park Condo
Location : Jalan Baru, Seberang Jaya, Butterworth, Penang
Property Type : Condominium
Tenure : Freehold
No of Blocks : Phase 2
No of Storey’s : 38 storeys’
Built-up Area : 1100 & 1040 sq.ft.
Total Units : 382
Indicative Price : RM235,000 onwards
Developer : Landmark Strategy Sdn Bhd (Island LandCap Properties Group)
Website : www.ilcpg.com.my