support@kopiandproperty.com

Advertisement Banner

Outlook is now negative. It’s NOT because of our finance minister or our BNM

I hope everyone has read the recent outlook downgrade from S&P Global Ratings for Malaysia’s sovereign rating? You missed it? It’s ok, I shall write about it today. The revision was not because of our successful effort (all of us) against COVID-19. It was also not because of the recent PENJANA which has helped stirred up the market a little. It was also not what the Finance Minister said (must not simple say anything which does not help the market) or what Bank Negara Malaysia (BNM) did to our overnight policy rate (OPR). BNM will have another policy meeting next week and there may be another decision on our OPR. Read an earlier article here. Lower or Higher both have its own advantages and disadvantages.

Article in thesundaily.my S&P Global Ratings Asia-Pacific sovereign & international public finance ratings director & lead analyst, Andrew Wood said that the revision of the outlook to negative was because of the impact of Malaysia’s current political situation. It has affected clarity in terms of policymaking, particularly on the fiscal side of things over the next two to three years.

He said, “There could very well be some significant differences between the Pakatan Harapan (PH) aligned government might take versus a Perikatan Nasional aligned government, especially with regard to revenue-generating measures and those that might replace the zero-rated GST programme, over the next two years, especially when the economy recovers.” Please do read the full report in the article yeah. Article in thesundaily.my

Before everyone start panicking, please note that our sovereign rating remains under Investment category. It is rated at A- by S&P Global and we maintained the same ‘Investment’ grade rating by all other international rating agencies too. In brief, economically, our country is still doing okay. Could have been better, definitely but at the moment, just enough. Now, with regards to the POLITICAL issue (which is the MAIN thing affecting the outlook revision from stable to negative), I think it’s time all the politicians who said they love Malaysia to really love Malaysia and do something positive about it yeah. You know who lah.

To all other Malaysians, happy travelling within Malaysia while at the same time staying safe by wearing masks and practise social distancing. We can do it together to prevent that never ending ‘second wave’ prediction by many friends on FB.

Please LIKE kopiandproperty.com FB page or Sign Up for free to get daily updates about the property market. Else, follow me on Twitter here.

Next suggested article: Yeah, border opening needs to start carefully

Property Investment always start with knowledge. Equip ourselves with more here.

Motion arrow towards right
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Motion arrow towards right
Share on facebook
Share on twitter
Share on linkedin
Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

Advertisement Banner

Facebook Comment

5 Responses

  1. Will the rate fixed at the rate approved by bank after bank loan approval now stay the same throughout the tenure in the future?

    1. Rates are always adjusted based on OPR. Unless your loan is based on fixed-rate. Else, it is always BLR + or BLR – and BLR is always adjusted based on OPR. Cheers.

      1. Is there any bank(s) offering Fixed Rate for housing loan now? Is there any criteria that we need to fulfil and is there any risk of opting for this option?

        1. Usually, banks do not offer fixed rate loans. Last time i do know AlA has this. Maybe you check with them?

Leave a Reply

Your email address will not be published. Required fields are marked *

Table of Contents

Most Recent Posts

join the family

Like us for daily investment news and more

Hit the like