Bank Negara: 35 years housing loan is enough
A maximum housing loan tenure of 35 years is more than enough for borrowers to settle their loans before retirement. For example, a housing loan taken when the borrower is 25 years old will extend to the retirement age of 60, said Bank Negara Malaysia in a statement. The central bank said the implementation of responsible financing guidelines served to protect individuals’ interests so that they borrow within their capacity to repay the loans. Access to financing is not the main problem confronting potential buyers of affordable houses, BNM said, adding that the fundamental issues that required resolution were affordability and the shortage of supply of reasonably priced houses. (New Straits Times Online)
Image from The Star Online
Banks not to blame for loan rejections
Local banks that are being targeted over new home buyers’ inability to secure financing say that the borrowers’ financial standing and income levels were responsible for most failed loan applications. A survey by the Association of Banks in Malaysia (ABM) and Association of Islamic Banking Institutions Malaysia (AIBIM) found that failed applicants did not meet Bank Negara’s guidelines on debt-to-income ratio, had bad credit history, and fell below income requirements, among others. Stressing that banks would continue to provide financial services to eligible applicants, they said five criteria – character, capacity, collateral, condition and capital – will continue to be used for evaluation purposes. (Malay Mail Online)
Mah Sing urges govt to relax housing loan approvals for first timers
Mah Sing Group Bhd is urging the government to consider measures to boost the property market, including relaxing loan approvals in Budget 2017 for first-time home buyers. Group managing director Tan Sri Leong Hoy Kum urged the banks to consider relaxing loan approvals and provide up to 95% financing for first homes, 90% for second homes and 70 per cent for third homes. He also suggested a higher debt service ratio of up to 80% and extension of loan tenure from 25 year to 40 years for first timers, as well as calling for a reduction in connection charges by utility companies, and release of government land for joint ventures with private developers. (The Borneo Post)
Raintree Club Kuala Lumpur (Photo from The Star Online)
Plan to redevelop Raintree Club
Members of the Raintree Club of Kuala Lumpur will decide on a resolution this week, which proposes to dissolve the club, selling the 6.2 acres it is located on and distribute the proceeds to members, sources said. This follows days after Land & General announced plans to redevelop its club facilities in Bandar Sri Damansara, and six months after Mah Sing revised terms to acquire the Sultan Salahuddin Abdul Aziz Shah Golf Course in Shah Alam. Such changes in land use suggest that despite the weak property market environment, running a club is even more challenging. The club is sitting on 6.2 acres of freehold land in Ampang Hilir, which is a prime city location. (The Star Online)
Malaysia on track to become SEA big data hub
Malaysia is making good progress in becoming a big data and analysis (BDA) hub in Southeast Asia, with 22 multinational companies from six countries currently setup here. Malaysian Digital Economy Corporation (MDEC) CEO Datuk Yasmin Mahmood said there are 32 BDA companies in total that have exported their services/solutions and 47 BDA start-ups continuously innovating and testing cutting-edge technology in the big data analysis sector. (New Straits Times Online)
Four Malaysian universities in top 40 of global young universities rankings
Four Malaysian universities are among the world’s top 40 best universities under 50 years of age, in the latest QS Quacquarelli Symonds Top 50 Under 50 university rankings. Universiti Putra Malaysia (UPM) jumped to 17th from 38th place to become Malaysia’s best young university. The other three are Universiti Teknologi Malaysia (UTM) at #25, Universiti Kebangsaan Malaysia (UKM) at #26 and Universiti Sains Malaysia (USM) at #33. Universities with heavy technology or STEM focus dominated the top rankings this year, with Singapore’s Nanyang Technological University (NTU) nabbing the top spot. (New Straits Times Online)
