Bank Negara Malaysia (BNM) today reduced the Overnight Policy Rate (OPR) by another 25 basis points to 1.75 per cent, a record low since the floor was set in 2004.

In a statement today, it said the Monetary Policy Committee (MPC) decided to have the ceiling and floor rates of the corridor of the OPR correspondingly reduced to 2.00 per cent and 1.50 percent, respectively.

“The impact of Covid-19 on the global economy is severe. Global economic conditions remain weak with global growth projected to be negative for the year,” it said.

It added that the reduction in the OPR will provide additional policy stimulus to accelerate the pace of economic recovery.

“The MPC will continue to assess evolving conditions and their implications on the overall outlook for inflation and domestic growth. The Bank will continue to utilise its policy levers as appropriate to create enabling conditions for a sustainable economic recovery,” it said.

The central bank added that although a trough is expected in the second quarter, broad-based weakness in the labour market and precautionary behaviour by households and businesses could affect the recovery going forward.

“Several major economies have begun relaxing measures to contain the Covid-19 pandemic, leading to the gradual resumption of economic activity. Financial conditions have improved, although risk aversion remains elevated.

“Downside risks to the global outlook remain, especially if a resurgence of the pandemic necessitates the reintroduction of containment measures,” it said.

For Malaysia, BNM said that the economic activity contracted sharply in the second quarter of the year, due to measures introduced to contain the pandemic globally and domestically.

“Following the gradual and progressive re-opening of the economy since early May, economic activities have begun to recover from the trough in the second quarter. The fiscal stimulus packages, alongside monetary and financial measures, will continue to underpin the improving economic outlook,” it said.

BNM also said that the projected improvement in the domestic economy is expected to be further supported by a gradual recovery in global growth conditions.

The pace and strength of the recovery, however, remain subject to downside risks emanating from both domestic and external factors.

“These include the prospect of further outbreaks of the pandemic leading to re-impositions of containment measures, more persistent weakness in labour market conditions, and a weaker-than-expected recovery in global growth,” it said.

Meanwhile, BNM said inflationary pressures are expected to be muted this year as average headline inflation is likely to be negative this year, primarily reflecting the substantially lower global oil prices.

“The risks of a broad-based and persistent decline in prices are assessed to be limited as economic activity resumes and demand conditions improve. Nevertheless, the outlook remains significantly affected by global oil and commodity prices. Underlying inflation is expected to be subdued and within expectations,” it added.

Source: Bernama

A newly proposed 60-hectare reclamation off Free Industrial Zone (FIZ) in Bayan Baru, stretching from Queensbay Mall roundabout towards Penang 2nd Bridge. With an estimated GDV of more than RM1 billion, this will be the longest sea-facing promenade in Penang, estimated to be about 8km-long, for the people to jog, exercise and cycle.

This project will have four oblong-shaped strips of reclaimed land attached to the coast of Penang Island, which would comprise of waterfront resorts, hotels, restaurants, medical, commercial and mixed development components.

Penang State Government would be calling for a request for proposal (RFP) from interested parties from July 31 to Sept 30 for consideration by the city council and other authorities. The winning RFP would reclaim the land and be the master developer for the project.

26 residents of the Desa Wawasan Flat here received a letter of offer for a unit under Rent-To-Own (RTO) scheme from the State Government.

The handover ceremony was officiated by the Chief Minister, Y.A.B. Mr. Chow Kon Yeow, on Saturday.

Kon Yeow said the State Government introduced the Rent To Own (RTO) scheme to enable the residents of the state to own their own homes and take full responsibility for their homes.

According to him, the selected buyers will have to pay a monthly installment of RM240 per month for a period of 15 years starting October 1.

“For the first phase, 26 buyers have been selected to accept the offer of a residential unit rental scheme in Block B of Desa Wawasan Flat.

“The resident will continue to pay the rent which will be considered a monthly installment payment for the period.

“At the end of this (payment) period, the ownership of the house will be transferred to the residents who accepted the RTO scheme,” he said during the handover ceremony.

Commenting further, Kon Yeow explained that the State Government has allocated RM1.5 million for repairs to residential units in Block B of Desa Wawasan Flat before being offered to buyers by way of rent purchase.

“Therefore, it is hoped that through this scheme it will be able to give a new spirit to the residents of the Desa Wawasan Flat.

“Let us work together to ensure that one of the basic needs of housing and its environment can be taken care of,” he said.

In addition, Jagdeep explained that for the first phase, 150 of the 456 residential units in Block B were identified to be offered to buyers under Rent-To-Own (RTO) scheme.

“We will give priority to the residents of this housing especially to those who have a clean record such as no arrears and such,” he said.

It is understood that the Desa Wawasan Flat is the sixth of the 13 public housing projects in the state that is being offered to buyers under Rent-To-Own (RTO) scheme.

Source: Buletin Mutiara

A newly proposed landed residential development by Greenview Villa Development Sdn. Bhd. at Kepala Batas. Located on a narrow 3.4-acre land near Jalan Pongsu Seribu, next to Taman Orkid Permai. It is just a stone’s throw away from Penang Matriculation College, about 10 minutes drive to Bertam Perdana Town Centre.

This development will feature 28 units of single-storey semi-detached with two different layouts and one unit of single-storey bungalow houses.

The project is still pending for approval, more details to be available upon official launch.

Property Project : (to be confirmed)
Location : Kepala Batas
Property Type : single-storey semi-detached and bunglow
Tenure : (to be confirmed)
Land Area: (to be confirmed)
Built-up Area: (to be confirmed)
Total Units : 28 (semi-detached), 1 (bungalow)
Indicative Price: (to be confirmed)
Developer : Greenview Villa Development SB

Location Map:

Malaysia’s central bank is expected to cut interest rates to a historic low next week, according to a slim majority in a Reuters poll, as it seeks to protect Southeast Asia’s third largest economy from the fallout of the coronavirus pandemic.

Bank Negara Malaysia (BNM) will cut its overnight policy rate (OPR) by at least 25 basis points (bps) to 1.75%, according to seven out of the 12 economists polled, with two of them betting on a bigger 50 bps rate reduction.

The remaining five economists expected interest rates to stay at 2.00%, already a record low, after three consecutive rate reductions in as many meetings this year.

Alex Holmes, Asia economist for Capital Economics, was one of the analysts who forecast a bigger move in the upcoming meeting.

“Given the poor outlook for growth and deeply negative inflation, we suspect the BNM will make use of its policy space and opt for a 50bp cut,” he said.

Malaysia began easing some lockdown measures imposed to contain the spread of the Covid-19 coronavirus in May. After growing just 0.7% in the first quarter, BNM said Malaysia is in an “unprecedented economic crisis” and was poised for a contraction in April-June.

While trade-reliant Malaysia had begun a “long and slow” recovery after some lockdown curbs were relaxed, Holmes said poor external demand and deflation warranted more policy easing.

Malaysia’s exports fell 25.5% in May, its biggest drop in 11 years.

The consumer price index fell 2.9% in May from a year earlier, as the economy grappled with subdued consumption for a third straight month.

The government in March rolled out a 260 billion ringgit ($60.69 billion) stimulus package to offset a sharp slowdown in domestic economic activity, and steep declines in tourism and demand for its commodities such as palm oil, crude oil and natural gas. ($1 = 4.2840 ringgit)

Source: TheStar.com.my