Bank Negara Malaysia Maintains OPR at 3% Amid Positive Economic Outlook
Bank Negara Malaysia's Monetary Policy Committee (MPC) has decided to maintain the Overnight Policy Rate (OPR) at 3%, citing a supportive domestic and global economic environment. Globally, resilient labor markets, moderating inflation, and less restrictive monetary policies are expected to sustain growth, with trade recovery bolstered by electrical and electronics (E&E) and non-E&E products. Malaysia's economy continues to perform well, driven by robust domestic spending, higher exports, and progress in public and private investment projects. Key drivers include the global tech upcycle, strong non-E&E exports, and increased tourism. Budget 2025 measures and structural reforms further strengthen the growth outlook, although risks remain from potential external demand slowdowns and geopolitical tensions. Headline and core inflation have been modest, averaging 1.8% year-to-date, and are projected to remain manageable in 2025 due to easing global cost pressures and stable domestic demand. However, inflation risks could rise depending on global commodity prices and domestic policy implementations. The ringgit's performance is influenced by external factors, but narrowing interest rate differentials and positive economic prospects are expected to support its stability. The MPC emphasized its commitment to ensuring monetary policy remains conducive to sustainable growth and price stability, with six meetings planned in 2025 to assess economic and inflation developments.
Date: Nov. 6, 2024
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JS-SEZ A Major Boost for Construction and Property Sectors
The Johor-Singapore Special Economic Zone (JS-SEZ), spanning 3,500 sq km from Kulai and part of Pontian to Pengerang, is set to transform the region's economic landscape. Analysts highlight that Malaysian contractors, unlike in previous developments such as Forest City, will benefit significantly from the zone's infrastructure demands, including utilities, warehouses, homes, and offices. Focused on public transportation and renewable energy, the zone offers opportunities for railway, solar panel, and road infrastructure projects. With a goal to attract 100 projects and create 100,000 high-value jobs within a decade, the JS-SEZ is supported by government incentives, including a special corporate tax rate, to lure foreign investments and drive demand for industrial buildings and offices.
Jan. 8, 2025
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FDI Inflows Bolster Optimism Among Malaysian Property Players for 2025
Industry players in Malaysia's real estate sector are optimistic about the market's prospects for 2025, driven by robust foreign direct investment (FDI) inflows and a resilient economic environment. According to the Malaysia Commercial Real Estate Investment Sentiment Survey (CREISS) 2025, 91% of respondents expressed optimism about the country's commercial real estate market, with 34% planning to increase their investments. This positive sentiment is supported by RM254.7 billion in approved investments during the first nine months of 2024—a 10.7% increase from 2023. The property market recorded 311,211 transactions valued at RM163 billion in the same period, indicating significant growth compared to the previous year.
Despite this optimism, challenges such as rising construction costs, increased building vacancy rates, and a high-interest-rate environment persist. The retail segment faces additional hurdles, including brand boycotts leading to declining sales and store closures. Nevertheless, Malaysia's economic outlook remains positive, with solid GDP growth of 5.2% year-on-year in the first nine months of 2024 and a strengthening labor market. Key investment hotspots identified for 2025 include Klang Valley and Johor, with sectors like data centers and industrial/logistics expected to drive the commercial property market forward.
Jan. 6, 2025
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Johor Maintains Balanced Housing Policy Amid Growing Foreign Interest
Johor will uphold its existing housing policy despite rising interest from foreign investors, particularly in upmarket residential properties, according to Datuk Mohd Jafni Md Shukor, chairman of the state housing and local government committee. Under the current policy, developers are required to allocate 60% of their projects for the open market and 40% for the Rumah Mampu Milik Johor (RMMJ) affordable housing scheme. The policy ensures a balanced housing market, addressing concerns about potential price hikes due to initiatives like the Forest City Special Financial Zone (SFZ) and the Johor-Singapore Special Economic Zone (JS-SEZ). Additionally, developers are mandated to cap certain property prices at RM300,000 and below, enabling the construction of affordable homes for locals while maintaining market stability.
The policy also facilitates affordable housing projects by redirecting profits from higher-priced properties (RM600,000 to RM2 million) to subsidize homes priced at RM150,000, which often have an actual market value of RM300,000. In 2023, the state engaged over 100 developers, resulting in the construction of 13,000 affordable homes, with plans for an additional 17,000 units within two years. A recent project in Kota Iskandar introduced 2,000 landed affordable homes in urban areas, priced at RM150,000. Despite increasing land values and construction costs, Johor's strategic policies ensure accessibility for locals while addressing growing demands from foreign investors.
Dec. 3, 2024
Tags: Johor
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