Kenanga launches RM500m AT1 capital programme to support business growth
The perpetual securities issued under the programme may be called by the bank with Bank Negara Malaysia's approval and will qualify as Additional Tier 1 capital under the central bank's Capital Adequacy Framework.
Proceeds from the issuance will be used for capital expenditure, working capital, refinancing of existing debt, or other general corporate purposes. –TMR
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Borneo Post
11 hours ago
- Borneo Post
New facility for Sibu Autistic Association delayed by RM5.9 mln shortfall
(Seated from third right) Ngu, Wong, Dr Soon, and others during the photo session. – Photo by Peter Boon SIBU (July 20): The Sibu Autistic Association (SAA) still requires RM5.9 million to complete its new building project, as only RM700,000 has been raised so far. SAA chairman David Ngu revealed that the 15-month project located at Jalan Alan here carries a total estimated cost of RM6.5 million. Ngu expressed relief upon receiving a RM200,000 donation from a charitable organisation based in Peninsular Malaysia. 'We are still very far off financially. That's why I constantly seek financial help,' Ngu told a press conference here today. According to him, one of SAA's founding members, Wong Ching Yong, had approached him and asked if there was any way that he could assist. Ngu explained that he had conveyed the urgency of the funding shortfall to Wong and detailed previous efforts that had not yielded promising results. 'He (Wong) suggested that I write a letter to a charitable body in Peninsular and not long after, we received a reply confirming a contribution of RM200,000. 'We are extremely grateful for their generosity. It is the largest single donation received so far,' he said, while thanking Wong for his assistance. It was learnt that the charitable body contributing the RM200,000 donation is the Lee Foundation States of Malaya. Ngu also revealed that Deputy Minister of Public Health, Housing and Local Government Datuk Michael Tiang, who is also Pelawan assemblyman, has pledged RM500,000 from his Rural Transformation Project (RTP) allocation for road and drainage infrastructure. Meanwhile, Wong disclosed his prior involvement as organising chairman for SAA's annual food fair fundraising campaign from 2000 to 2020, giving him insight into the association's long-standing financial challenges. 'Sibu folks have always been generous in stepping forward to donate. Currently, SAA is constructing a new facility specifically for young adults with autism,' said Wong, who also serves as the Sarawak United People's Party (SUPP) Dudong branch chairman. 'Back in 2000, they were all children. Now they have grown up and need a facility that can help them acquire skills for independent living, especially when their parents are no longer around. 'This is one of the primary purposes of the new building,' he said. Wong added that while RM700,000 has been raised, the funding gap remains wide, and more contributions are urgently needed from the public. Ngu noted that the current facility houses around 60 children aged up to 12, while the upcoming building – now nearing completion – is intended to accommodate up to 200 young adults, depending on staff availability. He added that the new building will provide vocational training, including farming activities, basic food preparation, and life skills for its residents. He further stated that Minister of Women, Childhood and Community Wellbeing Development Minister Dato Sri Fatimah Abdullah will officiate the roof-topping ceremony on August 18. The project is reportedly ahead of schedule. 'Initially, the project was scheduled for completion in May, 2026. However, based on the latest update from the contractor, it is expected to be completed by the end of this year,' said Ngu. When completed, the three-storey facility will include offices and administration space on the ground floor, classrooms on the first floor, and therapy session rooms on the third floor. Also present at the press conference was SUPP Dudong advisor Datuk Dr Soon Choon Teck. David Ngu new building shortfall Sibu Autistic Association
New Straits Times
15 hours ago
- New Straits Times
Rate cut to spur moderate demand in property sector, say analysts
KUALA LUMPUR: The cut in the Overnight Policy Rate (OPR) by Bank Negara Malaysia (BNM) will spur moderate demand for properties in general in the second half (2H) of this year while demand in the high-end segment will continue to be robust, analysts say. They contend that the lower benchmark lending rate, together with infrastructure growth and incentives for developers, will maintain the property market's resilience with stable price trends amid a cautiously optimistic outlook. JLL Malaysia managing director Jamie Tan told Bernama that stable economic conditions, wealth preservation strategies and attractive incentives have encouraged upgraders and investors to remain active despite the cautious sentiment in the broader market. Nevertheless, analysts contend that it is an opportune time for buyers. Although price softening is seen in some high-end urban pockets, they believe overall sentiment has improved, particularly in infrastructure-connected zones and prime city areas. Nevertheless, real estate experts said they notice the rate cut has led to a noticeable increase in property viewings and home loan inquiries, which could boost buying sentiment especially in the mid-range segment. Luxury Homes Defy Downtrend Despite a general slowdown in the overall real estate market in the first quarter (1Q) of this year, the high-end segment demonstrated greater resilience. This was evident by the 5.6 per cent year-on-year increase in transactions for properties priced above RM1 million, according to the National Property Information Centre (Napic). While the overall volume and value of property transactions declined by 6.2 per cent and 8.9 per cent respectively, demand for luxury homes in Kuala Lumpur, Penang, and Johor Bahru remained firm, driven by affluent buyers seeking high-quality developments in prime locations. Prices Holding Steady in Urban Centres Tan said residential prices across Malaysia's major urban centres remained steady, with modest gains recorded across key segments. In the Klang Valley, serviced apartments and condominiums saw price increases of between 1.8 and 2.3 per cent, while double-storey terrace home prices rose 1.4 per cent. "These figures reflect sustained demand and market stabilisation following the post-pandemic recovery," he said, adding that balanced new supply and consistent buyer demand have supported price stability. IQI co-founder and chief executive officer Kashif Ansari expressed optimism the current market overhang at about 4.8 months of sales volume is still relatively healthy, especially compared with countries like the United States (US), where overhang rates hover around 10 months. Affordability Challenges for Mass Market Kashif said in contrast, the sub-RM500,000 market faced more significant challenges. Transaction volumes and values in this price segment declined, reflecting affordability pressures and cautious spending among mass-market buyers. "While many buyers are financially stable, factors like rising living costs and stagnant wages continue to weigh on sentiment," he said. To address affordability gaps, Kashif said developers and policymakers must focus on boosting supply in the RM200,000 to RM500,000 range, where demand is high but product availability remains limited. Improved Overhang Situation, But Strategic Supply Needed Residential overhang rates, while improving, still warrant attention. According to JLL, overhang rates stood at 23 per cent in Selangor and Johor and 19 per cent in Kuala Lumpur as of the second quarter (2Q) of 2025, marking improvements from pandemic-era peaks of 63 per cent in 2020-2021. "Not all unsold stock is equal. Properties with strong locations, connectivity and design features continue to attract buyers, while poorly located or overbuilt units struggle," Tan said. Competition among developers remains intense, with many offering incentives to boost sales without officially cutting prices. These include price rebates, renovation packages, legal fee absorption and even lifestyle perks like travel vouchers. OPR Cut Sparks Renewed Buyer Interest BNM's OPR cut to 2.75 per cent on July 10, after about two years of no change, has boosted buyer sentiment. While the OPR rate remained unchanged at 3.0 per cent since May 2023, the latest cut is seen as an opportune time for homebuyers to enter the market. Real estate experts reported a noticeable increase in property viewings and home loan inquiries following the rate cut. "This reduction improves affordability. A borrower financing a RM500,000 home could save around RM66 per month, adding up to RM23,000 over a 30-year loan. That's a tangible incentive," said Kashif. In combination with developer incentives, the rate cut is expected to revive activity particularly in the mid-range market, where value-for-money is key. However, he said that the property market remains sensitive to broader economic conditions. External shocks such as geopolitical tensions, policy instability, or global economic slowdowns could dampen momentum. Infrastructure as a Growth Catalyst On the other hand, infrastructure continues to play a key role in driving property values. Homes located near public transport networks such as Mass Rapid Transit (MRT) and Light Rail Transit (LRT) stations, consistently outperform the broader market. Citing a study by Universiti Pendidikan Sultan Idris, Kashif said that properties within 400 metres of MRT stations on the Sungai Buloh-Kajang (SBK) line sold at a 9.5 per cent premium post-completion, about RM99,900 more than the citywide average. Tan, meanwhile, also cited transit-oriented developments, which would benefit from long-term desirability, making it attractive even in softer market conditions. "Connectivity drives footfall, rental demand and capital values. Investors perceive infrastructure-rich areas as lower-risk and higher-return zones," said Tan. Johor's Transformation Boosting Values Johor is emerging as a standout market, driven by the Johor-Singapore Special Economic Zone (JS-SEZ) and the upcoming Rapid Transit System (RTS) Link. These mega-projects are spurring development interest and price growth. As of 2Q 2025, serviced apartment prices in strategic areas such as Bukit Chagar and the Customs, Immigration and Quarantine complex have surged by up to 20.4 per cent. New projects are fetching prices of RM1,500 per sq ft and above – levels previously limited to Kuala Lumpur's Golden Triangle. "Johor's cross-border connectivity is a powerful magnet for both developers and investors," Tan said. Towards Holistic, Livable Development Looking forward, analysts emphasised the importance of holistic urban planning and inclusive housing strategies. "Developers must align their projects with real community needs, not just profit margins," said Tan. This includes better coordination with local councils, sustainable design and ensuring access to amenities, public transport and green spaces. Kashif echoed the call, adding that a stable property market should prioritise accessibility, housing quality, and long-term livability, not just price performance. Regulatory clarity and streamlined approval processes are also key to maintaining investor confidence. Tan urged more consistent guidelines from federal and local authorities to avoid delays and uncertainty. He lamented that "frequent policy changes discourage long-term planning and add costs to development." To spur affordable housing, both experts recommended refining the Home Ownership Campaign, introducing tax incentives for affordable housing developers and avoiding haphazard launches that could flood the market. He cautioned that without proper planning, "we risk another overhang situation." Positive Overall Outlook for Property Sector While Malaysia's property market faces challenges in affordability and oversupply in some segments, the overall outlook remains positive. Stable economic conditions, supportive monetary policy, infrastructure development and a responsive developer ecosystem are helping to maintain resilience. With targeted policy support and careful supply alignment, 2Q 2025 could see renewed momentum, especially in the mid- and high-end segments that deliver both value and connectivity.
Barnama
18 hours ago
- Barnama
Rate Cut To Spur Moderate Demand In Property Sector, Say Analysts
They contend that the lower benchmark lending rate, together with infrastructure growth and incentives for developers, will maintain the property market's resilience with stable price trends amid a cautiously optimistic outlook. KUALA LUMPUR, July 20 (Bernama) -- The cut in the Overnight Policy Rate (OPR) by Bank Negara Malaysia (BNM) will spur moderate demand for properties in general in the second half (2H) of this year while demand in the high-end segment will continue to be robust, analysts say. Although price softening is seen in some high-end urban pockets, they believe overall sentiment has improved, particularly in infrastructure-connected zones and prime city areas. Nevertheless, analysts contend that it is an opportune time for buyers. JLL Malaysia managing director Jamie Tan told Bernama that stable economic conditions, wealth preservation strategies and attractive incentives have encouraged upgraders and investors to remain active despite the cautious sentiment in the broader market. Nevertheless, real estate experts said they notice the rate cut has led to a noticeable increase in property viewings and home loan inquiries, which could boost buying sentiment especially in the mid-range segment. Despite a general slowdown in the overall real estate market in the first quarter (1Q) of this year, the high-end segment demonstrated greater resilience. This was evident by the 5.6 per cent year-on-year increase in transactions for properties priced above RM1 million, according to the National Property Information Centre (Napic). While the overall volume and value of property transactions declined by 6.2 per cent and 8.9 per cent respectively, demand for luxury homes in Kuala Lumpur, Penang, and Johor Bahru remained firm, driven by affluent buyers seeking high-quality developments in prime locations. Prices Holding Steady in Urban Centres Tan said residential prices across Malaysia's major urban centres remained steady, with modest gains recorded across key segments. In the Klang Valley, serviced apartments and condominiums saw price increases of between 1.8 and 2.3 per cent, while double-storey terrace home prices rose 1.4 per cent. 'These figures reflect sustained demand and market stabilisation following the post-pandemic recovery,' he said, adding that balanced new supply and consistent buyer demand have supported price stability. IQI co-founder and chief executive officer Kashif Ansari expressed optimism the current market overhang at about 4.8 months of sales volume is still relatively healthy, especially compared with countries like the United States (US), where overhang rates hover around 10 months. Affordability Challenges for Mass Market Kashif said in contrast, the sub-RM500,000 market faced more significant challenges. Transaction volumes and values in this price segment declined, reflecting affordability pressures and cautious spending among mass-market buyers. 'While many buyers are financially stable, factors like rising living costs and stagnant wages continue to weigh on sentiment,' he said. To address affordability gaps, Kashif said developers and policymakers must focus on boosting supply in the RM200,000 to RM500,000 range, where demand is high but product availability remains limited. Improved Overhang Situation, But Strategic Supply Needed Residential overhang rates, while improving, still warrant attention. According to JLL, overhang rates stood at 23 per cent in Selangor and Johor and 19 per cent in Kuala Lumpur as of the second quarter (2Q) of 2025, marking improvements from pandemic-era peaks of 63 per cent in 2020-2021. 'Not all unsold stock is equal. Properties with strong locations, connectivity and design features continue to attract buyers, while poorly located or overbuilt units struggle,' Tan said. Competition among developers remains intense, with many offering incentives to boost sales without officially cutting prices. These include price rebates, renovation packages, legal fee absorption and even lifestyle perks like travel vouchers. OPR Cut Sparks Renewed Buyer Interest BNM's OPR cut to 2.75 per cent on July 10, after about two years of no change, has boosted buyer sentiment. While the OPR rate remained unchanged at 3.0 per cent since May 2023, the latest cut is seen as an opportune time for homebuyers to enter the market. Real estate experts reported a noticeable increase in property viewings and home loan inquiries following the rate cut. 'This reduction improves affordability. A borrower financing a RM500,000 home could save around RM66 per month, adding up to RM23,000 over a 30-year loan. That's a tangible incentive,' said Kashif. In combination with developer incentives, the rate cut is expected to revive activity particularly in the mid-range market, where value-for-money is key. However, he said that the property market remains sensitive to broader economic conditions. External shocks such as geopolitical tensions, policy instability, or global economic slowdowns could dampen momentum. Infrastructure as a Growth Catalyst On the other hand, infrastructure continues to play a key role in driving property values. Homes located near public transport networks such as Mass Rapid Transit (MRT) and Light Rail Transit (LRT) stations, consistently outperform the broader market. Citing a study by Universiti Pendidikan Sultan Idris, Kashif said that properties within 400 metres of MRT stations on the Sungai Buloh-Kajang (SBK) line sold at a 9.5 per cent premium post-completion, about RM99,900 more than the citywide average. Tan, meanwhile, also cited transit-oriented developments, which would benefit from long-term desirability, making it attractive even in softer market conditions. 'Connectivity drives footfall, rental demand and capital values. Investors perceive infrastructure-rich areas as lower-risk and higher-return zones,' said Tan. Johor's Transformation Boosting Values Johor is emerging as a standout market, driven by the Johor-Singapore Special Economic Zone (JS-SEZ) and the upcoming Rapid Transit System (RTS) Link. These mega-projects are spurring development interest and price growth. As of 2Q 2025, serviced apartment prices in strategic areas such as Bukit Chagar and the Customs, Immigration and Quarantine complex have surged by up to 20.4 per cent. New projects are fetching prices of RM1,500 per sq ft and above -- levels previously limited to Kuala Lumpur's Golden Triangle. 'Johor's cross-border connectivity is a powerful magnet for both developers and investors,' Tan said. Towards Holistic, Livable Development Looking forward, analysts emphasised the importance of holistic urban planning and inclusive housing strategies. 'Developers must align their projects with real community needs, not just profit margins,' said Tan. This includes better coordination with local councils, sustainable design and ensuring access to amenities, public transport and green spaces. Kashif echoed the call, adding that a stable property market should prioritise accessibility, housing quality, and long-term livability, not just price performance. Regulatory clarity and streamlined approval processes are also key to maintaining investor confidence. Tan urged more consistent guidelines from federal and local authorities to avoid delays and uncertainty. He lamented that 'frequent policy changes discourage long-term planning and add costs to development.' To spur affordable housing, both experts recommended refining the Home Ownership Campaign, introducing tax incentives for affordable housing developers and avoiding haphazard launches that could flood the market. He cautioned that without proper planning, 'we risk another overhang situation.' Positive Overall Outlook for Property Sector While Malaysia's property market faces challenges in affordability and oversupply in some segments, the overall outlook remains positive. Stable economic conditions, supportive monetary policy, infrastructure development and a responsive developer ecosystem are helping to maintain resilience. With targeted policy support and careful supply alignment, 2Q 2025 could see renewed momentum, especially in the mid- and high-end segments that deliver both value and connectivity. -- BERNAMA BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies. Follow us on social media : Facebook : @bernamaofficial, @bernamatv, @bernamaradio Twitter : @ @BernamaTV, @bernamaradio Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial TikTok : @bernamaofficial
