The inaugural Penang International Property Summit, and an international property exposition to be held at the Subterranean Penang International Convention and Exhibition Centre (SPICE) this weekend, is expected to attract over 30,000 potential house-buyers.

The summit, themed,” Managing Future Trends and Challenges” is from Jan 9-10 and the property exhibition from Jan 9-11.

State Housing and Town and Country Planning Committee chairman Jagdeep Singh Deo said the three-day event is a platform for all stakeholders to come together and speak on issues they faced.

“This is the first time, we are having an exhibition with a summit, as we want to address every issue globally, at one event.

“To date, over 48 exhibition booths have been taken up, and about 120 participants confirmed, including developers, auctioneers and bankers.

“The summit is aimed at creating better awareness of the many issues faced by industry players. Their views will be heard by the state government to further promote the property market in Penang,” he told reporters here today.

He said among the topics to be broached by prominent speakers includes the challenges of affordable housing, incentives for first-time house buyers and greener buildings.

Meanwhile, the Vice president of the International Real Estate Federation (Fiabci) Michael Geh said the first quarter of the year will see many house-buyers rushing to purchase properties before implementation of the Goods and Services Tax.

He said the buyers should take advantage of the Expo to purchase their houses with over 70 companies and developers expected to participate. – Bernama

* PenangPropertyTalk.com is Penang International Property Summit 2015’s Official Event Partner.

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About 40 business premises and some residential homes along Jalan Bayan Lepas will soon have to make way for an overhead road project connecting Pekan Bayan Lepas to Teluk Kumbar.

State Works, Utilities and Transportation Committee chairman Lim Hock Seng said the RM207mil Federal project would also affect the Bayan Lepas police station and its quarters, the Department of Civil Aviation (DCA) quarters and the Bayan Lepas community hall.

“The project is to upgrade the Federal road from Teluk Kumbar to the Penang International Airport. It’s expected to be completed in August next year,” he said.

The project consists of two overhead bridges – a four-lane, 750m elevated structure from Jalan Teluk Kumbar to the airport and also an elevated U-turn.

It will also see the 3km stretch of the one-lane road from Jalan Teluk Kumbar to Jalan Bayan Lepas upgraded to a two-lane road.

The project is one of four traffic dispersal projects designed to help ease traffic after the second Penang Bridge was opened in in March.

The other three projects are the upgrading of the Bayan Lepas Expressway (BLE) from the bridge exit, upgrading of the state road from Jalan Negeri in Batu Maung to Jalan Sultan Azlan Shah and building a bridge across the Batu Maung junction-cum-roundabout.

It was reported that the total cost of the four projects was RM825mil.

Ng Kok Lam, 52, who owns three bicycle shops on the row of shoplots, welcomed the project as it would reduce the congestion and attract more people to the town.

“But I’m not sure if I will continue to run the business somewhere else or call it a day,” he said.

Ng said he had received his compensation and would need to evict within 30 days.

MCA’s Bayan Lepas branch chairman Ong Hoy Chin, 63, who runs a tailor shop there, said the project was a timely move.

“The number of vehicles here has increased. It could help ease the traffic jam,” he said.

Fabric shop owner Mohamad Sithik Askar, 30, said his business would be affected by the project.

“We’ve been running this business for the past 70 years. Now I’ve to find another place,” he said.

Source: StarProperty.my

There is strong demand for public housing in Penang, with some 40,000 on a waiting list medium and low-cost housing. – The Malaysian Insider file pic, January 5, 2015.

The real estate sector in Penang is bracing for a surge in property purchases in the first quarter of this year, as house buyers rush to beat the implementation of the Goods and Services Tax (GST) on April 1.

Michael Geh, advisor of the Penang Property Summit 2015, said the GST on housing will see a “run-up” in purchases of both new and secondary properties during this period.

“A lot of people who are ready to buy new property will make the purchases during this period rather than after the imposition of the GST,” said Geh, who is also vice-president of the International Real Estate Federation (Fiabci) Malaysia.

He said prospective buyers need to take advantage of platforms that offer housing options, such as the summit which is taking place this weekend, to decide and seal purchases during this period.
Geh said the industry may witness a lull for a few months following the GST, as the market observes and examines the implications of the tax on housing.

He said other countries that saw GST being implemented had experienced the trend where the first few months went by with potential purchasers and the industry trying to grasp its impact.

GST will be enforced in Malaysia on a list of goods and services which will be charged 6% tax at every stage of the supply chain.

Geh was speaking at a press conference to announce the summit’s Penang International Property Conference 2015, to be held on January 9 and 10 at the sPICE Arena in Penang.

The summit is organised by the Penang government in collaboration with Pen Events Sdn Bhd.

The Edge is an event partner of the summit.

Also present were Jagdeep Singh Deo, the state executive councillor for housing, and town and country planning, and Pen Events CEO Ong Ban Seang.

Jagdeep said a property exhibition will also be held at the venue from January 9 to 11, with a charity auction and donation drive to aid victims of the current flood disaster that has hit other parts of the country.

He added that the Penang Housing Department will be present at the expo to accept registrations for the state’s affordable housing units.

The strong demand for public housing in the state has seen a waiting list of some 20,000 applicants for low-cost housing (up to RM42,000 per unit) and another 20,000 for low-medium cost housing (up to RM72,500), he said.

Some 4,000 applicants also registered for the new category of affordable housing (below RM400,000 per unit on the island and below RM 250,000 on the mainland) in the first eight months of last year, he added. – January 5, 2015.

Source: The Malaysian Insider

Malaysia has been voted among the top 5 best places to retire based on the Annual Global Retirement Index for 2014 by International Living.

The index was compiled using input by International Living’s team of correspondents based in various cities and countries around the world, combining real-world data about climate, healthcare, cost of living, personal safety and other factors to draw up a comprehensive list of the so-called “best-bang-for-your-buck” retirement destinations on the planet.

Malaysia was listed as one of the top five retirement destinations, just behind Ecuador, Mexico and Panama – but ahead of all the Asian retirement destinations. Other Asian nations listed in the index but much behind Malaysia were Thailand, the Philippines and Vietnam.

But International Living administers a word of caution when it tells the potential retirees to take into account that “ultimately no list or formula can automatically deliver the best destination for you. Only you can decide that.

“Only you can assess your personal preferences, needs, budget and desires, and look at the options available to see which nation best suits your needs”.

Under the caption “Malaysia – Great Value for Money in a Cultural Melting Pot”, the index explains that every year, more and more expats wake up to the amazing opportunities Malaysia has to offer.

“The country has one of the most robust economies in Asia, and this is reflected in the consistently high standard of living available to locals and expats alike. It’s just one of many factors that led to it being ranked the highest Asian nation in this year’s index,” it says.

Quality of life in Malaysia is considered to be cost-efficient as well as excellent. In typical expat locations such as Kuala Lumpur and Penang, high-quality real estate is available for rent at a low cost.

“Why buy when you can rent a 1,600-square-foot apartment with a swimming pool for just US$850 a month?” the index asks.

One can truly savour a life of luxury here (in Malaysia) on a modest budget, the authors of the index explain.

“With your money going further, you can afford to treat yourself to the stunning array of local food – which mirrors Malaysia’s diverse cultural make-up. For as little as US$5, you can enjoy an excellent meal, with a bottle of wine setting you back the same price. The street food is similarly scrumptious and one of the true charms of Malaysian cuisine.”

International Living cites the example of New Yorker Thomas O’Neal who lives in Penang.

“I rent a 1,600-square-foot apartment with an amazing pool, just five minutes’ walk from the ritzy Gurney Plaza shopping mall,” O’Neal is quoted as saying.

“It costs me just US$850 a month. I don’t need a car, either, so I’m saving money left, right, and centre. I love the weather – 82 degrees Fahrenheit on average – and the ease of getting to Thailand, Cambodia, Vietnam, and Laos. When you combine that with a cost of living of US$1,500 per month, including my rent, it’s almost unbeatable.”

Malaysia makes a “perfect base from which you can explore the innumerable natural, historical, and cultural treasures that Southeast Asia has to offer. The proliferation of cheap Asian airlines in recent years has made it easier (and more affordable) than ever to explore Thailand, Indonesia, India, and Japan. In Malaysia, Asia is truly at your doorstep”.

Direct flights to the US are also available, so getting home for the holidays needn’t be a concern. Neither is Internet access, as every year high-speed Internet makes more and more inroads into the country. It is already widely and cheaply available in popular expat destinations like Kuala Lumpur and Penang.

As a throwback to the British colonial period, English is widely spoken by locals, making it all the easier to adjust and find your way around. And places like Penang have plenty of social occasions and festivities for you to enjoy, perfect opportunities to mingle with locals and expats alike.

Tourism Malaysia can make a strong pitch for Malaysia as an attractive tourism destination, particularly for the retiree population that can become an important source of revenue and have ripple effects on other sectors of Malaysia’s economy.

North American experts feel that Malaysia would do well to launch a campaign to highlight the facilities available in Malaysia for the retiree population.

“But Tourism Malaysia needs to take advantage of the index real fast. Strike while the iron is hot,” says George Richards, a travel agent, about the index on retirement destinations.

Source: Bernama

Effective 2 Jan 2015, the Base Rate will replace the Base Lending Rate (BLR) as the main reference rate for new retail floating rate loans.

Since the introduction of the BLR framework in 1983, the BLR has served as the main reference rate on retail floating rate loans in Malaysia. Since then, the determination and implementation of the BLR has evolved with the development of the financial sector. In the recent period, however, the BLR has become less relevant as a reference rate for loan pricing, as lending rates on new retail loans are being offered at substantial discounts to the BLR. The BLR also lacks transparency, which makes it difficult for consumers to make an informed decision.

The new Reference Rate Framework aims to provide a more transparent reference rate to enable better decision by consumers in making choices among the many loan products offered by financial institutions. The new reference rate will also better reflect changes in cost arising from monetary policy and market funding conditions, while encouraging greater discipline and efficiency among financial institutions in the pricing of retail financing products.

The Base Rate will be determined by the financial institutions’ benchmark cost of funds and the Statutory Reserve Requirement (SRR). Other components of loan pricing such as borrower credit risk, liquidity risk premium, operating costs and profit margin will be reflected in a spread above the Base Rate. This increases the visibility of the factors underlying changes to the Base Rate. The greater transparency in turn will enable more informed decision making by consumers. Under this cost-plus structure, spreads will always be positive as it would not be possible for financial institutions to offer lending rates below the reference rate. Financial institutions will be given the flexibility to determine their respective benchmark rates. The expected strong link between the Base Rate, market interest rates and the Overnight Policy Rate (OPR) will facilitate more complete adjustments to retail loan repayments when market interest rates adjust to an increase or decrease in the OPR.

The Base Rate will be used for new retail floating rate loans and the refinancing of existing loans extended from 2 January 2015 onwards. After the effective date, BLR-based loans prior to 2015 will continue to be referenced against the BLR. However, when a financial institution makes any adjustments to the Base Rate, a corresponding adjustment to the BLR will also be made. As such, financial institutions would be required to display both their Base Rate and BLR at all branches and websites.

The shift to the new Reference Rate Framework should have no impact on the effective lending rates charged to retail borrowers which are determined by various factors, including a financial institution’s assessment of a borrower’s credit standing, market funding rates and competitive considerations. It is also important to note that the changes do not represent a change in the Bank’s monetary policy stance.

The following is the Base Rates and Indicative Effective Lending Rates of Financial Institutions as at 2 January 2015:
Base Rate and Indicative Effective Lending Rates as at 02/01/2015 (PDF, 29KB)

Source: Bank Negara Malaysia