Bursa Malaysia and SC may streamline functions on REITs and ETFs
Bursa Malaysia Bhd is seeking public feedback on proposals related to collective investment schemes (CIS), including whether to streamline the regulatory functions between it and the Securities Commission (SC) by making the exchange the single approving authority for new issues of securities by CIS post-listing, except for debt securities. This will enhance Bursa’s attractiveness and competitiveness as a destination for capital raising and investment related to CIS, such as real estate investment trusts (REITs), exchange traded funds and closed-end funds. Key proposals include promoting the exchange as a one-stop centre for all secondary fund-raising, equipping investors with meaningful information, and strengthen investor protection of CIS. (The Star Online)
Further OPR cut, easing of property rules possible
A further cut in Bank Negara Malaysia’s (BNM) Overnight Policy Rate (OPR) and a relaxing of property measures by year-end are possible, based on the central bank’s comment that risks to financial stability have receded. While a rate cut so soon is not likely, BNM is expected to be ready to lend a hand in supporting domestic growth via monetary easing. Economists do not rule out a possibility of a further OPR cut and/or relaxation of property measures by year-end. BNM governor Datuk Muhammad Ibrahim said the OPR cut on July 13 was a pre-emptive action to ensure that the economy is on a steady growth path, and help boost the economy. (The Sun Daily)
International tender next month for Malaysia-Singapore HSR
Malaysia and Singapore are expecting to call for an international tender next month for a joint development partner to provide technical support for the Kuala Lumpur-Singapore high-speed rail (HSR) project. A memorandum of understanding (MoU) was signed yesterday between both countries, firming up a legally binding bilateral agreement, and eyeing completion of the project by 2026. Hoping to complete the cross-border HSR project within 10 years was seen as “an ambitious target” by Singapore Prime Minister Lee Hsien Loong, but achievable if both countries fully commit to the project. Malaysian Prime Minister Najib Razak said the HSR will create multiplier effects to both nations, with an estimated 30,000 jobs created. This will not just benefit the major cities, but transform the smaller towns in between. The HSR will have eight stations — a terminus each in Bandar Malaysia and Singapore, and six intermediate stations in Putrajaya, Seremban, Ayer Keroh, Muar, Batu Pahat and Iskandar Puteri. (The Edge Markets)
Datuk Seri Najib Razak (right) and Lee Hsien Loong witness the signing of the Memorandum of Understanding on the Malaysia-Singapore High Speed Rail project at Seri Perdana, July 19, 2016. ― Picture by Saw Siow Feng/Malay Mail Online
The Lexis Hibiscus Port Dickson (Photo from The Star)
PD resort the world’s largest water home development
The vast size of the Lexis Hibiscus Port Dickson has prompted award-winning eco-architect, academic and author Professor Jason Pomeroy to dub it the largest water home development in the world. It comprises 522 water villas stretching out to the sea in the shape of a hibiscus, as well as 117 luxurious suites, making it an architectural masterpiece. The resort, Lexis Hotel Group’s third property in Port Dickson, was featured in Pomeroy’s latest book, POG (Pod Off-Grid) – Explorations into Low Energy Waterborne Communities. Each of the resort’s 639 rooms (water villas and luxury suites) has its own plunge pool and steam room. The resort is also home to the tallest fountain in Malaysia, a structure that shoots jets of water as high as 122m. (The Star Online)
OPR cut renews appeal for Malaysia REITs
Malaysian REITs are seeing a renewed interest following last week’s surprise rate cut by Bank Negara, as investors seek higher returns amid declining bond yields. Several brokerages, including UOB Kay Hian and Hong Leong Investment Bank, raised the sector’s outlook as potentially cheaper credit brightens prospects of higher consumption in an economy where domestic demand powers growth. REITs typically offer healthy dividends fueld by rental income, and tend to gain from monetary easing compared to bonds and short-term bills. Lower rates may also help boost earnings by reducing borrowing expenses. There are a total of 17 REITs listed in Malaysia. (Nikkei Asian Review)
Sabah housing association wants gov to bring back DIBS
Sabah Housing and Real Estate Developers Association (SHAREDA) has urged the government to bring back the Developers Interest Bearing Scheme (DIBS) for first-time home buyers and channel the relevant assistance directly to targeted groups. First time buyers, especially, are affected, as they are finding it difficult to come up with 20% to 30% of the downpayment for a house. It is hoped that the government will consider allowing property developers to absorb the loan interest of first home buyers so they can purchase units with a 10% deposit through the incorporation of the scheme in the National Budget 2017. (The Borneo Post)
