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Is WFH Culture Driving People To Semi-Urban Areas?

Market observers are split on whether the work-from-home culture is fueling the trend of Malaysians buying properties in semi-urban areas and small towns.

According to The Sun Daily, Vice-President A. Subramaniam of the Association of Valuers, Property Managers, Estate Agents and Property Consultants (PEPS) believes the trend is fueled by the significant drop in property prices from last year, while real estate agent Gan Boon How attributes it to the work-from-home arrangement adopted by companies.

Smaller towns like Semenyih and Rawang, according to Subramaniam, are gradually becoming the go-to destinations to live because property costs are significantly lower and more reasonable.

He accepted the advantages of the work-from-home culture, claiming that it allowed people to have more flexible work hours and spend more time with their families at home. However, according to Subramaniam, it is still too early to determine whether the work-from-home arrangement has set the pattern for urban to semi-urban migration. What is certain, he said, is that residential houses have become more inexpensive in recent years.

Subramaniam believes that the home office would become a sought-after feature in the future.

 

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With more Malaysians looking to semi-urban areas and small towns to acquire properties, market watchers are divided on whether the work from home culture is the driving force for such buying trend.

Association of Valuers, Property Managers, Estate Agents and Property Consultants (PEPS) Vice-President A. Subramaniam believes the trend is fuelled by the significant decline in property prices from last year, while real estate agent Gan Boon How attributes it to the work from home arrangement adopted by companies, reported The Sun Daily.

Subramaniam noted that smaller towns such as Semenyih and Rawang are slowly turning into the go-to places to live in as property prices in these areas are much lower and more negotiable.

“Granted, prices have also dropped in cities. For instance, properties in Kuala Lumpur now cost 20% to 30% lower than they did last year. It’s no longer a seller’s market. It’s a buyer’s market,” he told the Sun.

He acknowledged the benefits of the work from home culture, saying it facilitated flexible work hours and allowed people to spend more time with their loved ones at home.

However, it is still too early to say if the work from home arrangement has set the trend for the urban to semi-urban migration, said Subramaniam.

“Perhaps it will become clearer next year,” he added.

He pointed that what is clear is that residential properties have become more affordable now.

“It’s obviously more difficult to sell a property when the economy has slowed down. Not many people are doing well, what with so many losing jobs or having their salaries reduced,” said Subramaniam.

“Affordability is still key, and the availability of freehold land and more spacious homes are some of the reasons people are buying new homes in the outskirts.”

Looking ahead, Subramaniam expects the home office to be a sought after feature in a house.

“People are already looking to upgrade their homes to serve as both living and work areas,” he said.

“This also means that a bigger home is necessary. Given that a larger house or apartment is more affordable out of town than in urban centres, many have opted to move.”

Meanwhile, Gan said the trend of homebuyers relocating to the outskirts has been picking up, particularly in Selangor, adding that it was mainly due to the flexibility afforded by the work from home culture.

“With remote work likely here to stay, expect housing to adjust accordingly as working remotely may mean that people no longer need to live in cities to work at their offices,” he said as quoted by the Sun.

 

Source: Property Guru

Kevin Hans Jun Wei Samuel No Comments

Are You Aware Of These Illegal Brokers?

Under the cover of technology and innovation, real estate organisations are warning the public to be cautious of unlicensed brokers.

The Royal Institution of Surveyors Malaysia (RISM), the Association of Valuers, Property Managers, Estate Agents, and Property Consultants in the Private Sector Malaysia (PEPS), the Malaysian Muslim Real Estate Consultants Association (PEHAM), the Malaysian Institute of Property and Facility Managers (MIPFM), and the Malaysian Institute of Estate Agents were among the organisations (MIEA).

When engaging any person or persons to carry out real estate services such as selling, buying, renting, leasing, tenancy administration, and advisory services, the associations are urging members of the public to deal only with real estate agents and firms registered with the Board of Valuers, Appraisers, Estate Agents, and Property Managers (BOVAEP).

The statement served as a reminder, according to the groups, that there are persons who are not estate agents but are running estate agency operations unlawfully and utilising a variety of inventive strategies to do so.

 

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KUALA LUMPUR (Sept 9): Real estate associations are urging the public to beware of illegal brokers under the guise of technology and innovation.

The associations consisted of The Royal Institution of Surveyors Malaysia (RISM), The Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS), Malaysian Muslim Real Estate Consultants Association (PEHAM), Malaysian Institute of Property and Facility Managers (MIPFM) and Malaysian Institute of Estate Agents (MIEA).

In a joint statement yesterday, the associations are calling for members of the public to deal only with real estate agents and firms registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) when engaging any person or persons to carry out real estate services which include selling, buying, renting, leasing, tenancy administration and advisory services.

The associations said the statement served as a reminder that there are people who are not estate agents but are operating estate agency businesses illegally and using many forms of creative ideas to do so.

Source: Edge Prop

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For The Property Market To Recover, Foreign Direct Investments (FDI) is Key

Experts tell The Edge Malaysia that foreign direct investment (FDI) is critical for the local property market to rebound.

FDI, according to Foo Gee Jen, group managing director of CBRE | WTW, is a stimulus for property. “Once it is in place, we will see a surge in high-value assets and properties,” says the expert. He stated, “We need additional investments, particularly from foreign investors.”

The property market, according to Stanley Toh, executive director of LaurelCap Sdn Bhd, “could revive if confidence returns to the market.”

Some real estate specialists believe that any rebound in the property market would be “slow and steady” in the future.

“It is time for Malaysians to understand that the heyday of great price growth is long gone,” says Siva Shankar, CEO of real estate agency Rahim & Co.

In the long run, any rebound we see from now on will be more organic and sustained growth. Rather than the dizzying highs and crashing lows of prior years, we need to become acclimated to this type of growth.”

Foo does not believe that the property boom years of 2008 to 2013 will be repeated.

 

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KUALA LUMPUR (Aug 14): Foreign direct investment (FDI) is an essential factor if the local property market is to recover, experts tell The Edge Malaysia.

Foo Gee Jen, group managing director of CBRE | WTW says that FDI is a catalyst for property. “Once it is there, we will see an increase in high-value assets and properties. We need new investments, especially from foreign investors,” he said.

“This may then generate more employment and business in the country. Massive additional new infrastructure investments are not necessary, only a government that is supportive and responsive to the needs of the business community on an all-inclusive basis,” said Foo.

“A revision of the current policies and incentives are crucial to rebuild the confidence of foreign investors in our country. Viewing foreign investors who have been in Malaysia for many years through a ‘them and us’ lens is an outdated approach that must be replaced,” he added.

Stanley Toh, executive director at LaurelCap Sdn Bhd told the business weekly that the property market “should recover once confidence returns to the market”.

“We are currently lagging behind two to three years when compared with other countries. Historically, when FDI comes in, it creates a feel-good factor and we see a boost in the property market,” Toh explained.

But Toh also felt that political instability has “hampered” foreign investments.

Many “business decisions related to real estate” have been shelved owing to “the current political scene in Malaysia” he added.

Some of the real estate experts are also of the view that any property market recovery moving forward will be “slow and steady”.

Siva Shankar, CEO of real estate agency at Rahim & Co that: “It is time Malaysians accept that the heyday of fantastic price increases are long over. Any recovery we see from now on will be steady growth and more organic in the long term. We need to get used to this kind of growth rather than the dizzying highs and crashing lows of previous years.”

Foo does not expect a repeat of the property boom years of 2008 to 2013.

 

Source: Edge Prop

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Tengku Zafrul Plans To Propose A 65 Percent Increase In The Statutory Debt Cap.

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz would propose an increase of 65% from current 60.0% of gross domestic product to the statutory debt ceiling (GDP).

He said the government’s commitment to support people and businesses is that the debt-to-GDP ratio would definitely climb to above 60% at year-end, despite the statutory debt-to-GDP rate is currently about 58 percent.

When asked about international borrowings because of restricted fiscal headroom by the government, Tengku Zafrul replied the government is not currently borrowing in foreign currencies.

Yet, the government has limited fiscal space, Tengku Zafrul admits, but that does not stop it from expanding its fiscal policy to boost the economy. He says to this day, around 97% of all government bonds are in ringgit and barely 3% in foreign currencies.

When the goods and services tax (GST) was reintroduced in Budget 2022, the minister of Finance stated that the government was focused on recovering the economy and that it would not be time for old consumer taxes like GST.

He said the government is looking at methods to increase its income and solve the problem of income leaking.

In the meantime, the Finance Minister expressed optimism that Malaysia will be ready to enter the COVID-19 endemic phase by the end of October this year, adding that he anticipated that all sectors would be able to resume operations by that time, albeit in a new normal state.

 

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KUALA LUMPUR (Sept 3): Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz (pictured) will propose to raise the statutory debt limit to 65 per cent from the current 60 per cent of the gross domestic product (GDP).

He said although the statutory debt-to-GDP ratio is currently at about 58 per cent, given the commitment made by the government to support the people and businesses, the debt-to-GDP ratio would probably increase to above 60 per cent by year-end.

“Today, we are still below 60 per cent, at about 58 per cent of our statutory debt limit. Even if we breach it, it will be marginal, but we still have to go to Parliament to increase the limit.

“The plan is to present it (the proposal) to the Cabinet next week, then we will bring it to Parliament at the right time,” he told a press conference today.

Asked if the government would consider foreign borrowings due to the limited fiscal space, Tengku Zafrul said the government would not borrow in foreign currencies for now.

“We have ample liquidity in the market that we can tap into. We expect to fund all the stimulus packages by tapping into the local ringgit market, and we have enough liquidity without being concerned about impacting the local market,” he said.

However, Tengku Zafrul admitted that the government has limited fiscal space, but that has not stopped it from continuing to expand its fiscal policy to support the economy.

“We have seen how we have revised our spending to increase borrowings, and our deficit has gone up, which is forecasted to be up to 6.5-7.0 per cent,” he said.

According to him, to-date, about 97 per cent of the government’s total borrowing is ringgit-denominated and only three per cent is in foreign currencies.

On the re-introduction of the goods and services tax (GST) in Budget 2022,  the Finance Minister said the government is focusing on reviving the economy, and it is not the right time to bring back old consumption tax like the GST.

He said the government is looking at ways to enhance its revenue and to address the issue of revenue leakages.

Meanwhile, commenting on the expectation that Malaysia would be able to enter the COVID-19 endemic phase by end-October this year, the Finance Minister said he hoped that all sectors would be allowed to resume operations by that time, albeit under the new normal state.

“Once we enter into the endemic phase, there would be changes in the standard operating procedure, but this will be discussed in the Malaysian National Security Council meeting,” he said.

 

Source: Edge Prop

Kevin Hans Jun Wei Samuel No Comments

Another 25 Bps Should Be Reduced To OPR For Economic Recovery, Says OCBC.

Overnight Political Rate (OPR) should be reduced by 25 bps in Bank Negara Malaysia (BNM) to ease Malaysia’s economic recovery journey, indicating a rockier route forwards.

The Monetary Policy Committee’s (MPC) meeting will take place next Thursday (9 September), at a time of strong global market sentiment, with Jerome Powell as Chairman of the United States Federal Reserve (Fed) striking a correct balance between paving the way to tapering and divorcing the expectation of a rate increase.

Wiranto pointed out that recent advances in ringgit could have less anxiety about any potential currency impact from rate reductions. Firstly, because of long-standing movement constraints, it considers the economic momentum in recent months to be inadequate. Moreover, a still-unclear forecast for the industry is referred to in the latest manufacturing Purchasing Managers Index (PMI).

On the home front, Wiranto noted that, although new instances of Covid-19 remain at high rates of about 20,000 a day, the silver coating appears to have begun turning the corner in Klang Valley’s long-suffering area.

Wiranto has also commented that the incoming government would like to press for the reopening of the Klang Valley, as its manufacturing hub position would bring a lift to the economy.

Wiranto added furthermore that Covid-19’s predicament would continue to play a major role in the pre-pandemic economy as head winds to domestic demand. He expressed his opinion that greater monetary policy support is needed at a time when taxation space is being squandered.

 

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KUALA LUMPUR (Sept 2): Bank Negara Malaysia (BNM) should trim the overnight policy rate (OPR) by 25 bps to ease Malaysia’s journey to economic recovery, as indicators hint at a rockier road ahead, said OCBC Bank.

Its economist Wellian Wiranto said next Thursday’s (Sept 9) Monetary Policy Committee (MPC) meeting will take place at a time when global market sentiment appears well-anchored, with the US Federal Reserve (Fed) chair Jerome Powell striking a right balance between paving the way for tapering and divorcing that from rate hike expectation.

“Back in July, Bank Negara Malaysia (BNM) kept its policy rate unchanged at 1.75%. Going forward, even though the bar for easing remains high given the previous decisions to hold, we remain of the view that further monetary policy accommodation is helpful to smoothen the path towards recovery into the fourth quarter (Q4) and 2022. To us, the need to cut (the) rate by 25 basis points (bps) on Sept 9 remains clear,” he said in a note today.

Wiranto noted that the ringgit’s gains recently could imply fewer concerns over any currency impact possible stemming from rate cuts.

“While its recent history of holding come-what-may suggests that another hold remains the path of least resistance, we believe that BNM could utilise the space presented by global market calm to trim the rate.

“This would aid an economy that has suffered hits from the pandemic resurgence and is now facing a less-clear exports-led recovery outlook ahead,” he said.

For one, Wiranto views the economic momentum in recent months as continuing to be sub-par due to prolonged movement restrictions.

“Indeed, the third quarter (Q3) is likely to post another sequential gross domestic product (GDP) contraction. Following the 2% contraction in the second quarter (Q2), this would present a spectre of technical recession for the Malaysian economy.

“For its part, BNM had slashed its 2021 GDP forecast from 6-7.5% before to 3-4% now. While we concur with its view that growth should improve from 4Q and into 2022, downside risks remain considerable. For one, exports which have been powering growth recently, might step into a soft patch, with potentially weaker demand from the two major markets of US and China.” he said.

Wiranto added the most recent manufacturing Purchasing Managers Index (PMI) print alludes to a still-unclear outlook for the sector.

“While the August reading improved to 43.4 from an average reading of 40 of the prior two months, it has nonetheless languished squarely in the contractionary zone, coming well below the 50 breakeven line.

“A recent survey by FMM-MIER also noted that sentiments among manufacturers remain weak, with only 15% respondents expecting business to pick up soon,” he said.

On the domestic front, Wiranto pointed out that even though new Covid-19 cases continue to linger at high levels of around 20,000 per day, the silver lining is that the long-suffering Klang Valley area appears to have started to turn the corner.

“However, other areas such as Johor and East Malaysia risk becoming the new epicentres. Moreover, the death rate continues to remain high, presenting a grim reminder that the fight against the delta variant is an arduous marathon, not a sprint,” he said.

Wiranto also observed the new government appears keen to push for a reopening of the Klang Valley, which would present a lift to the economy given its status as the country’s manufacturing hub.

“This would be predicated on a high vaccination rate of over 90% of the area population. While the overall inoculation rate nationwide enjoyed a big boost in recent months such that more than 45% of Malaysians are now fully inoculated, it remains some distance away from 80-90% that might be deemed safe for a full reopening.

“Moreover, the rate of inoculation appears to have flagged in recent weeks at a national level. Without a renewed push under the new Cabinet, this would present a risk to the reopening hope.” he said.

Wiranto also said that the ongoing Covid-19 situation would continue to act as headwinds to domestic consumption, which had been playing a greater role in the economy in pre-pandemic years.

“The resumption of an uptick in the unemployment rate further complicates any expectation of a quick return of Malaysian shoppers. This may be especially so given that the labour market outlook may not improve markedly soon. The FMM-MIER survey noted that among manufacturers, for instance, only 12% expect to increase their headcount in the coming months, compared to 25% that intend to reduce employment.

“Apart from the lack of clarity on employment — and hence income — another factor that could curb consumption would be the level of indebtedness. Before the pandemic, Malaysia’s household debt (was) already ranked as one of the highest in the region as a proportion of its economy.

“That ratio ballooned to over 93% in 2020. While easing policy rate may have the side effect of egging on further debt build up — indeed Bank of Korea recently hiked rate partly due to that — in Malaysia’s case, the cyclical need of salvaging household purchasing power may yet trump the structural compulsion to curb debt build-up. Even though loan moratorium has helped to offer some relief, lower servicing costs would help too, especially given the accruing of interests during the period,” he said.

As such, Wiranto opined the need for further monetary policy help comes at a time when fiscal space is crimped.

“Already, (the) 2021 budget balance may reach as low as -7% of GDP, the widest gap since 2009. Together with lower-than-expected GDP growth, it would push the statutory debt-to-GDP ratio to above 60% by (the) end of this year. While the new government may push for a higher ratio of, say, 65% of GDP, it may not offer that much more headroom, even as we expect a still expansionary 2022 Budget. Moreover, the negative outlook by S&P would act to curb any overtly gung-ho fiscal spending as well.” he said.

 

Source: Edge Prop

Kevin Hans Jun Wei Samuel No Comments

Minimal Rental For Those Affected By Covid-19, Says Datuk Seri Reezal Merican

According to Minister Datuk Seri Reezal Merican Naina Merican, the Ministry of Housing and Local Government will provide housing for groups affected by Covid-19 at a minimal rent for at least two years.

He promised to provide more details on the residential aid effort for residents affected by the Covid-19 outbreak, which he stated will be a top priority when he takes over the Ministry of Housing and Local Government (KPKT).

He stated the Covid-19 pandemic had had a significant influence on the people’s economy, as some people lost their employment and were unable to meet daily expenses, including paying rent, and that hawkers, petty traders, and inhabitants of the People’s Housing Project were among those affected (PPR).

Reezal Merican stated that KPKT would continue the Community Vaccination Mobilisation Programme (MOVAK 2.0) in six states with low vaccination rates, namely Terengganu, Perak, Johor, Kedah, Kelantan, and Sabah, by focusing on PPR dwellers and small business owners.

According to him, the Ministry of Health (MoH) had donated 80,000 vaccine doses for the MOVAK programme, with 33,000 people in the target groups receiving the vaccination so far across the country.

Reezal Merican said he’ll meet with Health Minister Khairy Jamaluddin to discuss increased vaccine supplies as part of MOVAK 2.0. Working on the Malaysian Family concept, Reezal Merican stated that he would guarantee that KPKT plans are carried out smoothly in order to provide a safe atmosphere for people to go about their daily lives.

 

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PUTRAJAYA (Sept 2): The Ministry of Housing and Local Government will be providing residence for groups affected by Covid-19 at minimum rent for at least two years, said Minister Datuk Seri Reezal Merican Naina Merican (pictured).

He said he will announce further information on the residence aid initiative for residents affected by the Covid-19 pandemic, which will be a primary focus when he leads the Ministry of Housing and Local Government (KPKT), on Monday.

He said the Covid-19 pandemic had given a major impact in terms of the people’s economy as some lost their jobs and were unable to cope with daily expenses as well as paying rent and among them were hawkers, petty traders and residents of the People’s Housing Project (PPR).

“Not only have they lost their jobs, they also lost the roof above their heads when they could not pay the rent,” he said at his first media conference here today after being appointed to the post by Prime Minister Datuk Seri Ismail Sabri Yaakob last week. Reezal Merican began his official duty at KPKT yesterday.

Reezal Merican added that KPKT would continue the Community Vaccination Mobilisation Programme (MOVAK 2.0) by focusing on PPR residents and petty traders in six states with low vaccination rates, namely Terengganu, Perak, Johor, Kedah, Kelantan and Sabah.

“I have asked my officers to provide data on the target groups living in 140 PPR throughout the country as well as petty traders who have yet to be vaccinated.

He said the Ministry of Health (MoH) had provided 80,000 vaccine doses for the MOVAK programme and 33,000 in the target groups nationwide had received the vaccine so far.

Reezal Merican said he will hold meetings with Health Minister Khairy Jamaluddin on additional vaccine supply to step up vaccination under MOVAK 2.0.

Working under the concept of the Malaysian Family, Reezal Merican said he would ensure that KPKT plans proceed smoothly to ensure a safe environment for the people to carry out normal life.

 

Source: Edge Prop

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Guan Eng Wants The Penang Government To Implement Its Own Anti-Covid-19 Actions

The State Assembly was told that the Penang administration should take its own preventive measures and not rely too heavily on the federal government to combat the COVID-19 outbreak.

The state government, according to Air Putih Assemblyman Lim Guan Eng (pictured), must take its own mitigating measures to deal with the pandemic, particularly to save more lives.

The actions to be done, according to Lim, include obtaining an adequate supply of vaccines so that more Penang citizens, particularly those at risk and those aged 50 and older, can be vaccinated.

Traders and hawkers should be given priority for vaccination in order to speed up efforts to revive the state’s economy, he added.

“If vaccination can be accelerated, we may be able to save more lives,” he added. “I hope the state administration, particularly the Health Exco, would not postpone looking into this subject.”

Meanwhile, Joseph Ng Soon Siang (PH-Air Itam), who intervened, requested that the Selangor government’s COVID-19 vaccine be delivered to all state constituencies to speed up the vaccination procedure.

The Selangor government donated 20,000 doses of COVID-19 vaccination to the Penang government last month.

 

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GEORGE TOWN (Sept  2): The Penang government should carry out its own preventive measures and not rely too much on the federal government in tackling the COVID-19 pandemic, the State Asembly was told today.

Air Putih Assemblyman Lim Guan Eng (pictured) said the state government needed to take its own mitigation measures to deal with the pandemic, especially to save more lives.

“I would like to suggest for the state government to carry out its mitigation measures, as the deaths due to COVID-19 in Penang is now worrying,” he said when debating the motion of thanks on the speech by the Penang Yang Dipertua Negeri Tan Sri Ahmad Fuzi Abdul Razak.

Lim said the measures to be taken included to get adequate supply of vaccines so that more Penang residents, especially those at risk,  and aged 50 and above, cold be vaccinated.

Priority for the vaccination should also be given to traders and hawkers to expedite efforts to restore the state’s economy, he added.

“If the vaccination can be expedited, we may be able to save more lives and I hope the state government, especially the Health Exco, will not delay looking into this matter,” he said.

Meanwhile, Joseph Ng Soon Siang (PH-Air Itam) , who intervened, suggested that the COVID-19 vaccine donated by the Selangor government be distributed to all state constituencies to speed up the vaccination process.

Last Tuesday, the Penang government received 20,000 doses of COVID-19 vaccine donated by the Selangor government.

 

Source: Edge Prop

Kevin Hans Jun Wei Samuel No Comments

The Ministry Of Works Will Concentrate On Public Infrastructure & The Construction Industry’s Recovery.

According to Senior Works Minister Datuk Fadillah Yusof, the Ministry of Works (KKR) would continue its economic recovery programme for the construction industry while focusing on enhancing public infrastructure in terms of connectivity, comfort, and safety.

Apart from other road projects under its jurisdiction, he said the focus would remain on projects like as the Pan Borneo Sarawak and Pan Borneo Sabah, as well as the Central Spine Road (CSR).

During the Cabinet meeting, the Prime Minister asked all ministries to set targets and programmes to be implemented within the next two weeks, he added.

He went on to say that it has results-oriented short- and long-term goals that must be demonstrated within the first 100 days in office.

Fadillah said he had instructed the Ministry’s administration to develop key performance indicators (KPIs) for facilitating and assuring the timely implementation of all projects so that the country’s economy could be restored as quickly as feasible.

“The Ministry and its agencies at all levels must be responsive to the current demands in working with the people,” he said.

 

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KUALA LUMPUR (Sept 1): The Ministry of Works (KKR) will continue its economic recovery agenda for the construction industry as well as focus on improving public infrastructure in terms of connectivity, comfort and safety, says Senior Works Minister Datuk Fadillah Yusof.

He said the focus would continue to be on projects such as the Pan Borneo Sarawak and Pan Borneo Sabah as well as the Central Spine Road (CSR), apart from other road projects under its jurisdiction.

“KKR is committed to implementing the economic recovery agenda for the construction industry by working with the people, as suggested by Prime Minister Datuk Seri Ismail Sabri Yaakob in his speech on the formation of the Cabinet last Friday,” he said in a statement today.

He said the Prime Minister during today’s Cabinet meeting instructed all Ministries to set targets and programmes to be implemented, within the next two weeks.

He added that it covers short-term and long-term targets which are results-oriented, to prove one’s achievements within the first 100 days in office.

Fadillah said he had asked the Ministry’s management to set key performance indicators (KPIs) in facilitating and ensuring the swift implementation of all projects in order to restore the country’s economy as soon as possible.

“All the levels in the Ministry and its agencies need to be sensitive to the current needs in working with the people,” he said.

 

Source: Edge Prop

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Budget 2022 Aims To Be Inclusive Of All Sectors Affected By Pandemic

According to the Ministry of Finance, Budget 2022 will be prepared with the idea that the economy will recover from the consequences of Covid-19 following year (MoF).

According to the Ministry of Finance, the budget will endeavour to ensure that no individual or business is left behind in getting government assistance and support, particularly those who would be adversely impacted by the extended Movement Control Order (MCO) in 2021.

This budget also serves as a stimulus for the execution of the 12th Malaysia Plan (12MP), which is based on the Sustainable Development Goals (SDGs) and the Shared Prosperity Vision 2030 (SPV2030), and will drive economic growth, inclusion, and sustainability in the medium term.

According to the Pre-Budget Statement, the 12MP is the first step of implementing SPV2030, therefore Budget 2022 will be linked with the 12MP priorities, which will be introduced to Parliament in September.

In short, Budget 2022 will be written with the goal of protecting and promoting people’s lives and livelihoods, restoring economic resilience, and catalysing socio-economic reforms. “Protecting and promoting the recovery of lives and livelihoods,” the Ministry of Finance stated.

Budget 2022, according to the ministry, would ensure that the NRP – which was started in June as an exit strategy to progressively move out of the Covid-19 problem in phases – continues to drive economic recovery.

Budget 2022 would continue to preserve and drive the recovery of lives and livelihoods following the crisis, it added, in order to secure the country’s success and ability to escape the crisis.

The administration would also push for the revival of economic sectors, particularly those that have been hit hard, such as tourism and retail, according to the statement.

Budget 2022 will focus on boosting digital and technology infrastructure as a vital element for the country’s economic and social system’s future continuity, according to the Pre-Budget Statement, in addition to the development and maintenance of physical infrastructure.

Digital infrastructure and apps would also play a key role in the business sector during the MCO, ensuring that economic sectors remained functioning and productive. According to the Ministry of Finance, the crisis has highlighted the necessity for the country to move to industrial sectors with higher efficiency based on automated technology and higher skills.

As a result, it stated that an emphasis will be placed on speeding up the transition to IR4.0 and digital transformation, as well as increasing human capital capabilities through upskilling and reskilling programmes based on labour market needs.

 

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KUALA LUMPUR (Aug 31): Budget 2022 will be drafted with the expectation that the economic situation will recover from the effects of Covid-19 next year, said the Ministry of Finance (MoF).

“As such, Budget 2022 will focus primarily on continuing to protect and restore the lives and livelihoods of the people and businesses, rebuild national resilience and catalyse postpandemic reforms,” the ministry said in its 2022 Pre-Budget Statement released today.

MoF said the budget will strive to ensure that no person or business is left behind in receiving the government’s assistance and support, especially those severely affected by the prolonged Movement Control Order (MCO) in 2021.

In addition, this budget also serves as a catalyst towards implementation of the 12th Malaysia Plan (12MP) that will drive economic growth, inclusiveness and sustainability in the medium term, based on the sustainable development goals (SDGs) and Shared Prosperity Vision 2030 (SPV2030), it said.

“The government will undertake various engagement and consultation sessions to obtain input and suggestions from various parties to ensure that the drafted budget is comprehensive and inclusive, in line with ‘Keluarga Malaysia’ spirit,” it added.

The Pre-Budget Statement said the 12MP is the first phase of the implementation of SPV2030, and therefore Budget 2022 will also be aligned with 12MP priorities that are scheduled to be tabled to Parliament in September.

“Aspects emphasized in the 12MP, namely growth, inclusion and sustainability, as well as key catalysts will be the basis for formulating and implementing initiatives for Budget 2022.

“A coordinated implementation will ensure a more cohesive and structured actionable measures to achieve short- and medium-term goals for national prosperity;” it said.

According to the statement, with the scenario of the nation recovering from the health and economic crisis, Budget 2022 will be formulated with priority towards:

(a) Continuing programmes to support and spur economic recovery in line with the gradual reopening of the economic sectors through the National Recovery Plan (NRP), as well as addressing potential lingering and longer-term effects of the pandemic crisis on public health and economic structure;

(b) Ensuring continuity in policy and assistance provided to the people and businesses through strengthening resilience in facing crises by protecting means of livelihoods and income opportunities for people and businesses; and

(c) Catalysing structural reforms in the post pandemic period in order for the nation to emerge more competitive, in addition to ensuring greater sustainability and inclusiveness in its development agenda.

“In summary, Budget 2022 will be formulated with the objective to protect and drive recovery of lives and livelihoods for the people, rebuild resilience of the economy and catalyse socio-economic reforms. Protecting and driving recovery of lives and livelihoods,” MoF said.

The ministry said Budget 2022 will ensure continuity of the NRP – which was launched in June as an exit strategy to gradually transition in phases out of the Covid-19 crisis –  in driving economic recovery.

To ensure the nation is successful and able to exit from this crisis, Budget 2022 will continue to protect and drive recovery of lives and livelihoods post crisis, it said.

The government will also drive recovery of economic sectors, especially those badly affected such as tourism and retail sectors, it said.

“Budget 2022 will also focus on efforts to help the vulnerable and disadvantaged segments of society, women, indigenous people and the disabled, to ensure no one is left behind in the nation’s developmental and recovery agenda.

“In addition, continued efforts to protect and generate new job opportunities will continue to be a priority,” it added.

The Pre-Budget Statement said in addition to the development and maintenance of physical infrastructure, Budget 2022 would also focus on enhancing digital and technological infrastructure as a core element for the continuity of the country’s economic and social system in the future.

“From an education perspective, digital infrastructure and applications also need to be upgraded to enable the education system to adjust towards supporting online education from home,” it said.

For the business sector, digital infrastructure and applications would also play an important role during the MCO, in ensuring economic sectors remain operational and productive.

MoF said this crisis has also exposed the need for the nation to transition to industrial sectors with a higher level of productivity based on automated technology and higher skills.

Hence, it said emphasis would also be given to accelerate the transition towards IR4.0 and digital transformation, in addition to raising human capital capabilities through upskilling and reskilling programmes based on the needs of the labour market.

“Budget 2022 will also evaluate the means to rebuild fiscal resilience that was affected by the high level of government commitments required to finance the stimulus packages and assistance to the people and businesses,” it added.

 

Source: Edge Prop

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Reduce The Development Plot Ratio To Stop COVID-19 From Spreading

A Penang municipal councillor believes that strategies targeted at avoiding the spread of COVID-19 and other viral illnesses, such as reducing plot ratio in construction projects, are needed.

Councillor Lee Kim Noor of the Penang Island City Council (MBPP) believes it is critical to alleviate overcrowding and congestion in residential developments, particularly in light of the pandemic.

Larger open places are needed, according to Lee, so residents may safely exercise and go on walks while adhering to rigorous SOPs. Future commercial development developers should also be forced to construct a good ventilation system that can filter out viruses, according to her.

Lee proposed running an awareness campaign among commercial building management agents about the significance of cleaning their ventilation systems and installing appropriate filtration systems in existing commercial projects.

She also encouraged MBPP to gather the required information for persons who have contracted COVID-19 and lay out the steps to take in such cases.

Furthermore, MBPP can post hotline numbers as well as hospital contact information on its various social media platforms for the public to call if they have been infected with the virus and are confused what to do next.

According to Yew, the plot ratio for development projects used to range from 2.8 to 3.5, depending on the region and type of project.

On a one-acre site, a plot ratio of 2.8 will allow developers to build 176 700-square-foot apartment units, while a plot ratio of 3.5 will allow for 220 700-square-foot apartment units.

Only four development projects have applied for the 4.0 plot ratio under the home ownership scheme, according to Yew.

 

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A Penang city councillor believe that it is time to set up policies aimed at preventing the spread of COVID-19 as well as other viral infections like reducing plot ratio in development projects.

Penang Island City Council (MBPP) councillor Lee Kim Noor said it is important to ease overcrowding and congestion at residential developments especially in view of the pandemic, reported Malay Mail.

“We should not raise the plot ratio indiscriminately that leads to a higher number of units within a development and causes congestion which makes it easier for the COVID-19 virus to spread,” she said during the end of the virtual full council meeting.

Lee noted that there is a need to prepare bigger open spaces, so residents could comfortably exercise and go out for walks while observing strict SOPs.

She added that developers of future commercial developments should also be required to install a good ventilation system that could filter out viruses.

“If we look at the daily COVID-19 cases, many clusters are from the workplace so other than close contact, there is a high possibility the spread in the workplace could be due to the air ventilation of these places where workers have to spend long hours and sometimes may have to remove their masks to eat, drink or talk,” she said as quoted by Malay Mail.

On existing commercial developments, Lee suggested conducting an awareness campaign among the commercial building management agents regarding the importance of cleaning their ventilation systems and installing suitable filtration systems.

“This can be done by sending letters to the management agents or to hold a webinar on the topic,” she said.

She also urged MBPP to prepare the necessary information for those who contracted COVID-19 and outline the things to do in such situations.

Moreover, MBPP can display hotline numbers as well as the contact numbers of hospitals in its various social media pages which the public can call if infected with the virus and is unsure of what to do next.

Meanwhile, MBPP Mayor Datuk Yew Tung Seang later announced that the state had introduced a higher plot ratio of 4.0 under a home ownership programme, amid demand for higher density projects.

He explained that the move is aimed at stimulating the construction and property industry within the state, noting that the higher plot ratio will only apply to certain projects.

A plot ratio of 4.0 means developers can build a residential development with about 251 apartment units of about 700 sq ft each on a one-acre site.

Previously, the plot ratio for development projects stands at between 2.8 and 3.5, depending on the location and type of project, said Yew.

A plot ratio of 2.8 will enable developers to build 176 apartment units of 700 sq ft each on a one-acre site, while a plot ratio of 3.5 will allow for 220 apartment units of the same size to be constructed.

Yew noted that only four development projects have so far applied for the 4.0 plot ratio under the home ownership programme.

 

Source: Property Guru