When interest rate rises, the mortgage rates will rise in tandem. In other words, we will have to pay a higher amount every month. Then again, if seen from the longer term context, the current rates are very low. Take a look at the chart showing the interest rate movement for Malaysia across a longer period of time. We can see the rates are considered on the lower end for the past 10 years or so.
Just SOME positive news for Malaysia #2 Thank you for reading the 1st one. It’s here if you like to read about it. I think
Just SOME positive news for Malaysia Malaysia is now 23rd MOST competitive country in the world (best ranking since 2020) “Malaysia has advanced 11 spots
Well, if the tariffs will dampen the consumer sentiment, then demand for goods and services will fall. This means the economy will slow down. No more multiplier effects to the economy since lower demand means lower production. In other words, less workers are needed. Thus, fewer people may have enough money to keep buying things they like. Businesses would think twice about marketing, about expanding or even about employing more people. Uncertainty is the order of the day. What would the central banks do…?
Well, cutting rates usually indicate a slowing down of economic activities or even a potential slowdown in the near future. Thus, instead of cutting 50 basis points later, the central bank may prefer to lengthen this whole process and just cut 25 basis points earlier and another 25 basis points later. Who knows, maybe this 25 basis point could have the right effects on the economy and no further rate cuts are needed?
Let’s just say that I do not agree if people were to buy a property at a price way above what they could afford because they believe they will get a lifeline from the government if something goes wrong along the way. If I could be happy to buy an apartment in a less prime area when I was much younger, why must the buyers of today only wanting to buy a condo instead? Or only want that certain area and thus having to pay a higher premium instead? They deserve something MORE than me? So, please just buy within your means and budget. Period.
Knight Frank Malaysia acknowledges the government’s ongoing commitment to fostering inclusive growth, particularly through strategic infrastructure initiatives and sustainability measures outlined in Budget 2025.
“This is a record-setting budget, but it is focused on efficiency and investment,” Mr. Ansari said. “We believe the country will harvest the benefits of this focus over the long-term in the form of faster
economic growth and real estate gains.
Before the arrival of Covid-19, Malaysia has these numbers when it comes to tourism. “A total of 26,100,784 international tourists visited Malaysia in 2019 compared to 25,832,354 in 2018. Meanwhile, tourist expenditure in 2019 rose by 2.4% to RM86. 1 billion compared to RM84.” Source: tourism.gov.my. We know, tourist numbers fell tremendously when Covid arrived in all countries. So, has the numbers recovered already for Malaysia? Are we again earning huge tourism revenues?
It has been a never-ending positive story for ringgit thus far, at least for the past many weeks. Every other week, we see the ringgit appreciating (actually it’s more of US$ depreciating) and then more good news come. Then, the following week, ringgit reaches a new high versus US$ and then we read more predictions / forecasts. Now, the latest one I read is that by the end of 2024, we will reach RM3.80 to US$1. This is like wow…
I repeat something that I have always been telling people and it’s very obvious from my writings. Currency movement should just be valued based on trade; surplus or deficit. If you have deficits year after year, why is your currency appreciating? No one wants to buy your goods and you have to keep buying other people’s currency because you needed their goods! Oh… the trades were done using a specific currency. No wonder.
Bank Negara Malaysia says it wants to be accommodative to economic growth as one of the reason it maintained the OPR. I think this is a healthy rate. I just hope the Federal Reserve of the US will reduce their rates and continue to do so a few more times until the differential with our OPR is very close. Currently, still some distance away. This news was yesterday: