Volume of transactions is expected to decline in Penang, says Henry Butcher Malaysia (Penang)
Key Economic Indicator
Penang’s Gross Regional Product (GRP) was mainly contributed by the manufacturing and services sectors. Manufacturing accounted for 50% of the GRP shares while 46% was from the services sector. Manufacturing’s main sub-sectors include electrical and electronic while services include hospitality, medical tourism and outsourcing of support services. The services sector is expected to surpass the manufacturing sector soon and is projected to grow by 48.6% in 2015. Unemployment rate remained stable at less than 3%. Penang’s population stands at 1,638,400 as at 2013 and two thirds of Penang’s population is less than 40 years old.
Impact of Goods & Services Tax (GST)
Goods & Services Tax (GST) under the Budget 2014 which replaced Sales Tax Act 1972 was implemented on 1st April 2015. The sale, purchase and rental of residential properties will not attract GST. However, any sale, purchase and rental of commercial & industrial properties will be taxed at 6%. Under the GST tax regime, consumers have been paying more for food, products and services. In view of the overall cost increase in property development, most analysts are of the opinion that this will have an eventual impact on property prices in the primary market. Commercial properties which attract GST are now beginning to feel the brunt of its effect.
Base Rate
Effective from January 2015, the new reference rate is known as Base Rate (BR). The latest BR as at Jan 2015 is between 2.96% to 4.02% while effective lending rate hovers between 4.45% to 4.8%.
Non-Performing loan
The percentage of non-performing loans (NPLs) reflects the health of the banking system. A higher percent of such loans means that the banks are having difficulty to collect their interest and principal on their credits. The total housing loan approved this year was RM1.937 million as at May 2015 compared to RM1.723 million during the same period in 2014, an increase of about RM214 million.
The public can have access to documents and agreements for two reclamation projects in Penang starting from today.
State secretary Datuk Seri Farizan Darus said the relevant documents for the two projects — 10.11ha in Pantai Jerejak and 14.16ha in Bayan Mutiara — were open for public viewing from 9am to 4.30pm.
“Visitors have to register at Level 3, Komtar, and make their payment first,” he told a press conference after a gathering with the state civil servants in Jen Hotel yesterday.
Farizan said viewers were allowed to bring only pens and pencils into the hall to copy the contents.
“However, no recording devices or handphones are allowed and they can request to buy the copied documents,” he said.
Farizan added that group viewing would be available for three people.
He, however, stressed that the state would disclose the documents only for the two projects approved by the present government as the two concessionaires refused to declassify the agreements on deals made with the previous state government.
“Our hands are tied. We can’t do anything since the agreements, which involved reclamation of 1,400 acres, were made by the Barisan Nasional administration,” he said.
While we are still waiting for Nadayu 290 at Bukit Gambier, here is yet another condominium proposed next to it.
The newly proposed development comprises a 39-storey building with 222 residential units. It is strategically located along Jalan Bukit Gambier, about 1.5km from University Science Malaysia (USM). Other amenities such as schools, convenient stores, banks, eateries and markets are also just a short drive away.
Details to be available upon project launch.
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Project Name: (to be confirmed) Location: Bukit Gambier, Penang Property Type: Condominium Built-up Area: (to be confirmed) Indicative Price: (to be confirmed) Total Units: 222 Developer: Pingat Mutiara Sdn. Bhd.
Eco Marina is an upcoming gated and guarded landed development by Eco World, located in the northern part of Batu Kawan. The masterplan of this development comprises a 150-acre waterfront and international standard golf course with homes offering stunning views of the sea and golfing greens.
The first phase, slated for launch in 2016, will debut a resort-inspired zero-lot bungalows sitting on hill slopes with unobstructed sea views overlooking Penang bridge and the island.
Reclamation work along Gurney Drive by Eastern & Oriental Bhd (E&O) as part of the Phase 2 Seri Tanjung Pinang (STP2) is expected to commence end this month.
State executive councillor Chow Kon Yeow said the reclamation work would most likely take 18 months to complete.
“Work will definitely start this year as they have obtained approval.
“There will be an announcement with regards to the reclamation at the end of February.
“Existing facilities and roads along the stretch will not be affected,” he told a press conference in Jalan Kelawai yesterday.
Meanwhile, Chow brushed aside the comment by Deputy Health Minister Datuk Seri Dr Hilmi Yahya that the Penang Transport Master Plan (PTMP) was not viable.
“If the PTMP is not viable, then what about in the Klang Valley?
“A lot of money is spent in promoting transportation in the Klang Valley too.
“To sustain the increasing car population, the way forward is to promote public transport,” he said.
Impact of Goods & Services Tax (GST)
