The Monetary Policy Committee (MPC) of Bank Negara Malaysia today decided to maintain the Overnight Policy Rate (OPR) at 3%.

Announcing this after its meeting, MPC gave an assurance that it will ensure that the monetary policy stance remains conducive to sustainable economic growth amid price stability.

In a statement, BNM said the MPC will remain vigilant to ongoing developments to inform on the assessment on the domestic inflation and growth trajectories going into 2025.

At the current OPR level, it added, the monetary policy stance remains supportive of the economy and is consistent with the current assessment of inflation and growth prospects.

On the Malaysian economy, BNM said the latest indicators point towards sustained strength in economic activity driven by resilient domestic expenditure and higher export activity.

The central bank said exports are expected to be supported by the global technology upcycle, continued strength in non-electrical and electronics products (E&E) goods, and higher tourist spending. Employment and wage growth, as well as policy measures, remain supportive of household spending.

The robust expansion in investment activity would be sustained by the progress of multiyear projects in both the private and public sectors, the higher realisation of approved investments, as well as the implementation of catalytic initiatives under the national master plans.

These investments, supported by higher capital imports, will raise exports and expand the productive capacity of the economy, BNM said, adding that Budget 2025 measures will provide additional support to growth.

“The growth outlook is subject to downside risks from lower-than-expected external demand and commodity production.”

It said upside risks to growth emanate mainly from greater spillover from the technology upcycle, more robust tourism activity and faster implementation of investment projects.

“Headline and core inflation remain modest, averaging 1.8% year-to-date. Going into 2025, inflation is expected to remain manageable, amid the easing global cost conditions and the absence of excessive domestic demand pressures,” said BNM.

Nevertheless, it added, the inflation outlook remains subject to the details of the implementation of announced domestic policy measures. Upside risk to inflation would be dependent on the extent of spillover effects of domestic policy measures, as well as global commodity prices and financial market developments.

BNM said the ringgit’s performance continues to be primarily driven by external factors. The outcome of the US elections could heighten volatility in the near term.

Looking ahead, the central bank said the narrowing interest rate differentials between Malaysia and the

advanced economies is positive for the ringgit.

“Malaysia’s favourable economic prospects and domestic structural reforms, complemented by ongoing initiatives to encourage flows, will continue to provide enduring support to the ringgit,” it added.

BNM highlighted that the global economy continues to expand amid resilient labour markets and continued recovery in trade.

Global economic growth is expected to be sustained by positive labour market conditions, moderating inflation and less restrictive monetary policies. Global trade recovery is expected to continue, supported by E&E and non-E&E products.

“The growth outlook remains subject to downside risks, mainly from further escalation of geopolitical tensions, heightened volatility in global financial markets, and slower growth momentum in major economies,” BNM said.

Source: TheSun.my

About Maldives Residences

A residential development by Ideal Property Group at Bayan Lepas. Strategically located along Jalan Sungai Tiram 6, just across the road from Havana Beach Residences. It is conveniently connected to Jalan Tun Dr Awang, less than 2km away from Penang International Airport. This development comprises 46-storey building with 4 residential towers. It features a mix of affordable and upgraded units, with a built-up size of 850sq.ft. onwards.

Find out more about Maldives Residences

Taman Bistari Jaya, a 21-acres mixed development by Mapahill Development Sdn. Bhd. within the township of Nibong Tebal. Located between Jalan Sungai Daun and Jalan Ooi Kar Seng, adjacent to Taman Bistari. It is only 4km away from Jawi toll plaza, about 20 minutes drive to Penang Second bridge.

The first phase of development includes a mix of 2-storey semi-detached homes with a built-up size of 2,164 sq.ft. and terrace homes starting from 1,798 sq.ft. Indicative prices for the terrace homes start at RM734k, while semi-detached units begin from RM912k. Future development plans feature additional terrace, semi-detached, and bungalow houses, along with a few shop office units.

Project Name : Taman Bistari Jaya
Location : Nibong Tebal
Property Type : Semi-detached & terrace
Tenure: Freehold
Built-up Size: 1,798 sq.ft. onwards (terrace), 2,164 sq.ft. (semi-detached)
Total Units: 42 (terrace), 12 (semi-detached)
Indicative Price : RM734k onwards (terrace), RM912k onwards (semi-detached)
Developer : Mapahill Development Sdn. Bhd.

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider, or party in question.

Source: Department of Statistic, Malaysia

Households in Kuala Lumpur, Selangor and Penang spent the highest amount per person per month last year on “basic expenditure for decent living”, according to the statistics department.

A national average of RM1,314 a month was recorded for households in Malaysia according to the department’s report on 2023 cost of living indicators, released today. Food accounted for 35% of the amount, the department said.

The basic expenditure figure for urban areas was recorded at RM1,423 a month, while that for rural areas came to RM927. “The difference is influenced by the average household size – 3.7 persons in urban areas and 4 persons in rural areas.”

The top three states for the highest basic expenditure per person were Kuala Lumpur (RM1,755 a month), Selangor (RM1,630) and Penang (RM1,471) while the lowest expenditures were in Kelantan (RM1,018), Perlis (RM1,026) and Kedah (RM1,034).

The department said people in urban areas spent RM467 per person on food every month, compared to RM411 in rural households.

Selangor recorded the highest mean per capita expenditure for food at RM507 a month, followed by Johor (RM476) and Melaka (RM471), while the lowest figures were for Kelantan (RM388), Perlis (RM392) and Terengganu (RM403).

Non-food items made up 65% or RM859 of the total per capita monthly basic expenditure; in urban households, the figure was RM956 a month, and RM516 in rural households.

The highest per capita expenditure on non-food items was in Kuala Lumpur (RM1,288), Selangor (RM1,123) and Penang (RM1,013) while the lowest figures were for Kedah (RM625), Sarawak and Kelantan (both RM630).

“The expenditure on non-food items was also influenced by household size and the availability of goods and services in the location,” the report read.

Source: FMT Online

The National House Buyers Association (HBA) has called for a clearer definition of “affordable housing” in Malaysia, stressing that homes priced as high as RM500,000 should not be considered affordable. Datuk Chang Kim Loong, the HBA’s Honorary Secretary-General, stated that true affordable housing must address the needs of households earning below the median income level, as outlined by a government-recognized affordability index. This news was reported in Business Times.

“A home is more than just a physical asset; it provides long-term financial security. The HBA urges the government to prioritize the people’s housing needs over developers’ interests,” Chang said. He defined affordable housing by three criteria: price range, suitable living space, and accessible location.

• Price Range: Housing should be priced between RM150,000 and RM300,000, distinct from low- and medium-cost housing priced below RM100,000, like People’s Housing Projects (PPR).
• Size and Suitability: A minimum size of 800 sq ft, with at least two bedrooms, ensures these homes are suitable for families.
• Location and Accessibility: Affordable housing should be in areas with reliable public transport links, such as LRT or KTM, and near essential amenities like schools and hospitals.

The HBA praised the government’s 2025 Budget proposals for the housing sector, noting that effective implementation could significantly increase the supply of affordable homes, particularly as Malaysians struggle with rising costs and economic pressures. Chang added that a “Housing Index” would also help standardize affordable housing definitions across states, accommodating varied local economic conditions and making homes truly affordable based on regional incomes.

Establishing a national affordable housing trust

In response to ongoing mismatches between supply and demand, the Real Estate and Housing Developers’ Association (Rehda) recently proposed creating a national affordable housing trust. Datuk Ho Hon Sang, President of Rehda, explained that the trust would focus on building affordable homes in high-demand areas to avoid surplus stock in less-demanding regions. Ho highlighted data from the National Property Information Centre that 28.6% of unsold homes in Q1 2024 were priced below RM300,000, underscoring a location-based mismatch in housing supply.

“Affordability must be aligned with specific demand areas, not a one-size-fits-all approach,” Ho said. He proposed that representatives from the Housing and Local Government Ministry, state authorities, and Rehda form a committee to evaluate where affordable housing is most needed. Developers would contribute a percentage of their gross development value to fund the trust.

Rehda also suggested developers work with banks to offer subsidized loans for affordable housing and urged the government to provide incentives, like discounts on premium charges, development fees, and Improvement Service Funds, to reduce the financial burden on home buyers.

Regional and state variations for affordable housing

Samuel Tan, CEO of Olive Tree Property Consultants, noted that the definition of “affordable housing” should vary by state, given the unique characteristics of each region. “A RM500,000 home may be affordable in the Klang Valley but would be considered a luxury property in states like Kelantan or Perlis,” Tan explained. Localized standards, he argued, would better reflect regional economic conditions and affordability.

Tan also emphasized that price alone should not define affordable housing. “The number of bedrooms, bathrooms, and proximity to public transport and amenities must be considered to provide a livable and functional space for families,” he said.

Program Residensi Rakyat (PRR) raises concerns

The HBA’s Chang expressed concerns regarding Program Residensi Rakyat (PRR), a new initiative included in the 2025 Budget by the Ministry of Housing and Local Government. The budget allocates RM900 million for 48 PRR projects, aiming to house around 17,500 residents by the end of 2025. However, Chang warned that the initiative could impose financial strains on the government, with PRR units projected to cost RM300,000 to build but sold at just RM60,000 each.

Chang pointed out that the current social housing model, PPR, is a rental arrangement meant to help lower-income groups save toward buying their own homes. He suggested that the government follow Johor’s Rumah Iskandar model, which offers a rent-to-own option, allowing qualified tenants to rent initially and buy later.

A sustainable path forward

By setting clear, regional standards for affordable housing, Malaysia can address both the shortfall in truly affordable homes and the regional disparities in housing demand. The HBA and Rehda’s proposals, combined with government initiatives, highlight the importance of a balanced, regional approach to make affordable housing a realistic and sustainable goal for the nation.