Malaysia’s Economy To Grow 5.5% This Year, Sarawak Average Home Prices Third Highest In Malaysia And, More

·6-min read

14th June – 20th June

World Bank expects Malaysia’s economy to expand 5.5% this year, on the back of a strong rebound in consumption.

Meanwhile, average home prices in Sarawak emerged as the third highest in the country at RM482,592 in 2021.

 

1) Malaysia’s economy to grow 5.5% this year

World Bank expects Malaysia’s economy to expand 5.5% this year, on the back of a strong rebound in consumption.

In its June 2022 Malaysia Economic Monitor report, World Bank noted that the country’s economy expanded 3.1% last year and forecasted a growth of 4.5% in 2023 and 4.4% in 2024, reported The Sun.

Meanwhile, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said the country’s economic growth forecast of between 5.3% and 6.3% for this year remains on track, reported Bernama.

“But things are very fluid, so we have to continuously monitor the progress to ensure that both appropriate monetary and fiscal responses are done to ensure our economy is growing despite the challenges,” he said.

“And it will be a challenge not just for Malaysia but also other economies in the world as we face the current challenges,” added the minister.

 

2) Sarawak average home prices third highest in Malaysia

Malaysia growth
Malaysia growth

A report by the Premier office of Sarawak’s Economic Planning Unit (EPU) showed that average residential property prices within the state is the third highest in Malaysia at RM482,592 in 2021.

Citing preliminary data from the Valuation and Property Services Department (JPPH) and National Property Information Centre (NAPIC), the report noted that the figure is a marginal decline from Q4 2020’s RM485,622.

Notably, Kuala Lumpur topped the list with average home prices at RM763,234, followed by Selangor at RM492,061, reported The Borneo Post.

Sabah came in fourth with average home prices at RM464,907 in 2021.

 

3) KAF Research downgrades Malaysia’s property sector to ‘neutral’

KAF Research has downgraded Malaysia’s property sector to ‘neutral’, saying the property cycle is moderating despite a post-pandemic economic recovery.

In fact, the developers covered by the research house posted lower year-on-year sales during the first quarter of 2022, reported the New Straits Times.

“In general, all developers had either set higher presales targets or maintained presales targets at 2021’s sales number, that is flattish presales guidance. However, based on 1Q22 sales performance, we have observed a strong YoY sales contraction. This is in the absence of Home Ownership Campaign,” it said.

Given the recent poor performance, KAF Research expects developers to guide for lower presales target soon.

“Presales targets set by developers earlier this year were partially justified by their aggressive planned launches. However, as developers are being cautious in their launches, there would be a potential cut in their planned launches, hence a potential cut in their presales targets,” it noted.

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PGMY_banner

4) Affordable housing loan for longhouse residents

Longhouse residents within Sarawak’s Dayak community can have their longhouses rebuilt with the help of the State Housing Development Corporation’s (HDC) affordable housing loan financing scheme.

Nangka Assemblyman Dr Annuar Rapaee shared that the scheme enabled residents of the 26-door Rumah Kawau within his constituency to rebuild their longhouse at a total cost of RM780,000, reported The Star.

“Each family or pintu (doors, or household units of a longhouse) in Rumah Kawau was given an interest-free loan of RM30,000. This is an initiative by the Sarawak government through HDC,” he said.

To repay the loan, the 26 families will only pay RM100 per month for 20 years, which was affordable for them, he added.

In expressing his gratitude, tuai rumah (longhouse chief) Kawau Anggang noted that it would have been impossible for them to rebuild the longhouse without the government assistance considering the high construction cost.

“It is a loan given to us without interest, so it is reasonable. We borrowed RM30,000 and we will repay the same amount,” he added.

 

5) 1,547 plots of land in Kelantan acquired for ECRL project

Malaysia growth
Malaysia growth

 

A total of 1,547 plots of land in Kelantan have been acquired and gazetted under Land Acquisition Act 1960’s Section 8 for the first phase of the East Coast Rail Link (ECRL) project.

Energy and Natural Resources Minister Datuk Seri Takiyuddin Hassan said the acquisitions were undertaken by Kelantan’s Department of Director-General of Lands and Mines (JKPTG) within the districts of Bachok, Kota Bharu, Machang and Pasir Puteh, reported Bernama.

“Overall, this project is proceeding smoothly, including in terms of the land acquisition process despite various issues which cropped up. But they were solved by the ministry with the cooperation of all parties especially the state government,” he said.

For the second phase, Kelantan’s JKPTG received land acquisition applications for 109 more plots of land within the districts of Bachok, Machang and Pasir Puteh, revealed Takiyuddin.

Set to be operational by January 2027, the ECRL covers a 665km route traversing through Kelantan, Pahang, Terengganu and Selangor.

 

6) Continue land acquisition for Sungai Baru redevelopment project or face consequences, says PKB

Kampong Bharu Development Corporation (PKB) said the government should continue the land acquisition for the Sungai Baru, Kampung Baru redevelopment project since it has met the requirements under the Land Acquisition Act (APT) 1960 even as some owners were against the project.

PKB noted that the government should be ready to bear all the losses incurred by the owners and developer involved should it decide to discontinue the land acquisition, reported Bernama.

The losses include the land acquisition deposit of RM50 million, RM30 million for transit and rental housing cost for residents until the completion of their replacement homes, relocation costs for those who opted to return to their original houses and cost of repairing houses that were abandoned for six years.

 

7) NAIM Group launches homeownership campaign

Muslim family looks happy while holding keys to their new home and sitting on the couch
Muslim family looks happy while holding keys to their new home and sitting on the couch

With the rising demand for homes, NAIM Group has launched a homeownership campaign in a bid to help Malaysians own a home in Sarawak.

To run until 30 June, the campaign – dubbed “Unwrap Your Dream Home” – will highlight three of NAIM’s completed residential and commercial development projects in Kuching, Bintulu, and Miri, reported the New Straits Times.

“We understand that the last two years have been challenging for the property development industry. Cognisant of this, we have introduced the campaign to help fellow Malaysians realise their dreams of owning a home at any of NAIM’s developments within their chosen environment,” said NAIM’s Head of Sales and Marketing Bahrin Wahid.

He noted that the campaign coincides with the improving property sentiment as well as positive macroeconomic indicators as the country enters the endemic phase.

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