Bank Negara Malaysia Reduces OPR to 2.75% - First Adjustment Since 2023
Bank Negara Malaysia’s Monetary Policy Committee (MPC) has decided to reduce the Overnight Policy Rate (OPR) by 25 basis points to 2.75%, lowering the ceiling and floor rates to 3% and 2.5%, respectively. This decision comes amid a global economic environment that continues to grow, supported by strong consumer spending, resilient labor markets, and fiscal stimulus. However, uncertainties such as geopolitical tensions and fluctuating trade policies pose potential risks to global financial stability and commodity prices. In Malaysia, economic activity remains robust, with continued growth expected in the second quarter, driven by strong domestic demand and steady exports. Employment and wage gains, particularly in domestic-oriented sectors, along with supportive policy measures, are sustaining household spending. Investments are also expected to grow, supported by public and private sector projects and strategic national initiatives. Export prospects may improve due to pro-growth global policies and sustained demand for key products like electrical and electronic goods. Inflation remains moderate, with headline and core inflation averaging 1.4% and 1.9% respectively in the first five months of 2025. With global cost pressures contained and domestic demand steady, inflation is expected to remain subdued. The ringgit’s performance will continue to be shaped by external factors, though Malaysia’s solid economic fundamentals and reforms offer support.
Date: July 9, 2025
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Singapore's Property Market Faces Potential Cooling Measures Amid Price Surge
Morgan Stanley reports that a surge in Singapore's housing prices, driven partly by speculative buying, may prompt the government to implement additional cooling measures. Analysts, including Wilson Ng, note that investors are purchasing properties with the intent to sell before completion, potentially leading to a 5% price decline this year due to increased supply and possible policy interventions. The government, preparing for an election year amid affordability concerns, has previously introduced measures such as doubling stamp duties for foreign buyers. Morgan Stanley suggests that future policies might focus on raising seller stamp duties to curb speculative activities.
Jan. 6, 2025
Tags: Global
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Singapore's Home Prices Rebound on Year-End Sales Boom
Singapore's private home prices rose by 2.3% in the fourth quarter of 2024, reversing a 0.7% decline from the previous quarter and marking the largest increase in a year. This rebound is attributed to a surge in new project sales and lower borrowing costs, with November seeing the highest number of private units sold in a single month since 2013. For the entire year, home prices increased by 3.9%, continuing an eight-year upward trend. Analysts, including those from Barclays and Citigroup, suggest that the government may introduce additional cooling measures to address housing affordability concerns, especially with an upcoming election. The Urban Redevelopment Authority has noted potential downside risks for 2025, such as possible renewed restrictions on global trade.
Jan. 2, 2025
Tags: Global
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China's December Home Sales Stabilize Amid Government Stimulus Measures
In December 2024, China's residential property market showed signs of stabilization, with home sales remaining flat year-on-year at 451.4 billion yuan (RM276.08 billion), halting the declines observed earlier in the year. This improvement is attributed to the government's recent stimulus efforts, including reduced borrowing costs on existing mortgages, relaxed purchasing restrictions in major cities, and lowered taxes on home acquisitions. These measures have invigorated the market, particularly in first-tier cities like Shanghai, where increased activity may help mitigate nationwide declines.
Despite this stabilization, the property sector continues to face challenges. Throughout 2024, sales from the top 100 developers declined by 28.1%, a steeper drop compared to the 16.5% decrease in 2023. Looking ahead, institutions like Morgan Stanley and Fitch Ratings project further contractions in 2025, with anticipated declines in both sales volumes and home prices. The government's reaffirmation of its growth target of around 5% for the coming year underscores the ongoing uncertainties in China's economic outlook.
Dec. 31, 2024
Tags: Global
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China to Focus on Stabilizing Housing Market in 2025
China's Ministry of Housing and Urban-Rural Development plans to focus on stabilizing the housing market in 2025 through policies that reduce mortgage rates, lower down payment requirements, and relax purchase restrictions to support first-time homebuyers. The ministry aims to strengthen the recovery seen in 2024 by increasing the supply of affordable housing and improving housing conditions for young people, new urban residents, and migrant workers. Additionally, China intends to expand affordable housing initiatives, promote the renovation of urban villages and old buildings, and shift towards the sale of completed homes to optimize the market and meet housing needs more effectively.
Dec. 25, 2024
Tags: Global
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