Govt may extend housing loan tenure
The property glut shows no signs of abating and the government is considering raising the maximum tenure of housing loan to 40 years to reduce the overhang. Industry sources said extending the tenure of loans may not be in the best interest of buyers but will help property developers shave off their inventory of houses that is becoming problematic for the industry. The government may make a request to reverse the maximum housing loan tenure back to 40 years after it was cut to 35 years back in 2013. Pressure to increase the maximum length of a loan comes from the ongoing six-month Home Ownership Campaign (HOC), which runs until June 30, 2019. A 40-year housing loan is currently offered to buyers of affordable houses under a Bank Negara scheme that was announced in Budget 2019. (The Star Online)
Rehda targets sales of at least RM3b from campaign
The Real Estate and Housing Developers’ Association (Rehda) hopes that the Home Ownership Campaign (HOC) 2019 will see total sales of at least RM3 billion. Its president Datuk Soam Heng Choon said that the target is based on the sales of RM2 billion to RM3 billion achieved in previous HOCs. A collaboration between Rehda and the Ministry of Housing and Local Government (KPKT), HOC 2019 is aimed at encouraging more home ownership among Malaysians. During the campaign period, all homebuyers of participating projects will receive a minimum discount of 10%. Furthermore, the stamp duty on the instrument of transfer for properties of up to RM1 million and on loan agreements of up to RM2.5 million will be waived. (The Edge)
Economic Affairs Ministry to draft new Malay Economic Policy
The Economic Affairs Ministry will draft a new Malay economic policy that prioritised growth and guaranteed equality and shared prosperity. Minister Datuk Seri Azmin Ali made the announcement that echoed Prime Minister Tun Dr Mahathir Mohamad’s recent assurance that Pakatan Harapan (PH) would look after Malay interests. “This new policy will give assurance towards the spirit of inclusivity and fairness that will ultimately contribute to the wealth that is to be shared among all Malaysians in line with the concept of ‘shared prosperity’,” he said. Azmin’s statement comes as Dr Mahathir had said that PH would look after Malay interests and stressed that it would not be at the expense of other races. (Malay Mail)
KIP to open three more malls in next three years
KIP Group of Companies is planning to open three new shopping malls over the next three years involving RM150 million in gross development cost to cater to the demand of the middle mass market. The three new malls will be located in Raub, Kuantan and Sungai Petani. “This means we will have a total of 12 shopping malls in our portfolio, including the six properties that had been injected to our listed entity, KIP REIT,” said group CEO Valerie Ong. KIP Reit’s portfolio now comprises one KIP shopping mall in Bangi and five KIP Marts in Tampoi, Kota Tinggi, Masai, Senawang and Malacca. Founded in 1993, KIP Group of Companies is a developer of value-added products in both property development and retail management. (The Sun Daily)
(Source: NST)
Gov’t to decide whether to sell off, refinance or shut down MAS
The government is looking into ways to resolve Malaysia Airlines’ (MAS) financial conundrum with several options on the table, including shutting down the national carrier. Prime Minister Tun Dr Mahathir Mohamad said the matter is being discussed following heavy losses sustained by MAS since it was privatised in 2014. was reported that half of Khazanah Nasional Bhd’s RM7.3 billion impairments registered last year were from sustaining MAS. The country’s sovereign wealth fund recorded a pre-tax loss of RM6.3 billion last year, bogged down by higher impairments, lower dividend income and fewer divestments. Last week, Dr Mahathir said Khazanah may have to drop some underperforming companies to save it from incurring more losses. (NST Online)
