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The Star
5 days ago
- Business
- The Star
Improving credit sentiment on OPR cut
PETALING JAYA: The cut in the overnight policy rate (OPR) is expected to provide a lift to credit sentiment and ease financing burdens, with positive implications for the banking and property sectors. Bank Negara had reduced the OPR by 25 basis points (bps) to 2.75% last Wednesday – the first cut in nearly two years – citing pre-emptive measures to support growth amid a softening global outlook. The policy rate had remained unchanged since May 2023, and with inflation projected to stay moderate, the central bank signalled that it aimed to maintain a stable growth trajectory. According to TA Research, most banks have announced a corresponding 25 bps reduction in their base rate, base lending rate or financing reference rate. 'While we reiterate that the recent OPR cut may exert mild pressure on bank earnings due to softer net interest margins, we see the impact as manageable, especially with support from the statutory reserve requirement cut,' the research house explained. It added: 'We also foresee lower borrowing costs to help lift sentiment and encourage lending, although overall loan growth is expected to moderate slightly due to ongoing cost-of-living pressures and weaker external sentiment. 'Importantly, lower rates may also ease asset quality risks by improving borrowers' cash flow and repayment capacity.' TA Research maintained its 'overweight' call on the banking sector, keeping its 2025 loan growth forecast at 5.7%. Its top stock picks in the sector include CIMB Group Holdings Bhd (target price: RM8.86), Public Bank Bhd (RM5.15), and Hong Leong Bank Bhd (RM23.59). The research house viewed the lower rate environment as providing offsetting benefits through improved sentiment and credit appetite, particularly in the consumer loan space. 'We assess the potential impact of loan growth by revisiting historical periods of OPR cuts to examine trends in residential mortgage and hire purchase loan growth,' it said. However, in contrast to housing, the automotive sector appeared less responsive to interest rate changes. 'Our analysis indicates that the impact on the automotive sector will be limited,' said TA Research. 'Based on car loan amounts ranging from RM34,580 to RM355,888 and repayment periods of five to nine years, the monthly repayment savings would only range between RM6 and RM67. 'This amount is unlikely to influence consumer purchasing decisions for vehicles significantly,' it added. TA Research cited historical data to support its view. It noted that despite a substantial OPR cut from 3.5% to 2% during the 2008/09 global financial crisis, total industry volume (TIV) saw a 2% decline in 2009. Similarly, during an economic slowdown in 2016, an OPR reduction also failed to bolster auto sales, and during the Covid-19 pandemic in 2020, TIV dropped 12.4%, with recovery driven more by tax incentives than rate cuts. As such, TA Research maintained a 'neutral' stance on the automotive sector, with a 'sell' rating on MBM Resources Bhd (target price: RM4.31) and Bermaz Auto Bhd (RM0.75), while Sime Darby Bhd (RM1.66) was rated 'hold'. For the property sector, the lower OPR translated into better affordability and project viability. Assuming banks fully pass on the rate cut, TA Research said, a 25-bp cut could decrease monthly instalments for a 35-year mortgage by 3.2%. This could nudge undecided buyers off the sidelines, particularly in the mid-market and mass segments. TA Research maintained its 'overweight' call on the Malaysian property sector heading into the second half of 2025. 'The sector is well positioned to benefit from a confluence of structural and policy-driven tailwinds,' it said. The research house's top 'buy' picks include Sime Darby Property Bhd (target price: RM2.05) and IOI Properties Group Bhd (RM2.78).
New Straits Times
23-06-2025
- New Straits Times
Over RM7mil in drugs, cash and assets seized in Johor
JOHOR BARU: Police have crippled a drug syndicate and seized over RM6.87 million worth of narcotics in raids at Mutiara Rini. A 45-year-old man and two Vietnamese women were arrested during two operations on June 14 and 15, during which police confiscated more than 42kg of various drugs. Johor police chief Datuk M. Kumar said the women, aged 34 and 23, were believed to be working as the man's aides. Initial investigations revealed the syndicate had been active since early this year, operating out of two rented double-storey terrace houses used to process, repackage and store drugs. "The first house, rented under the main suspect's name since April 2023, contained 2,670g of powder believed to be ecstasy and 368g of suspected cannabis. "We believe the drugs were processed and packaged at this location. "Following the arrest, the suspect led police to another house about 1km away, which he had rented just last month. "There, police seized 38,022g of suspected ecstasy powder and 1,375g of suspected ketamine. We believe this second premises was used as a drug storage facility before distribution," he said at a press conference at the Johor police headquarters today. Kumar said the total value of the seized drugs was RM6,875,354 — enough to supply 146,195 addicts. In addition to the drugs, police confiscated processing and repackaging equipment, two vehicles, RM49,150 in cash, SGD2,580 (about RM8,835), and assorted jewellery, bringing the total value of seizures to more than RM7.14 million. Kumar said the syndicate processed the drugs and repackaged them into small packets ranging from 30g to 100g, selling them locally for between RM250 and RM350 each. "The suspect identified buyers and marketed the drugs via social media. "Some of the drugs were delivered directly by syndicate members, while others were left at designated drop-off points for buyers to collect," he said. Urine tests showed all three suspects tested positive for methamphetamine, ketamine and benzodiazepines. They have been remanded until this Thursday for investigation under Section 39B of the Dangerous Drugs Act 1952 for drug trafficking, and Section 6(3) of the Immigration Act 1959/63 for immigration offences.
The Star
23-06-2025
- The Star
Police uncover drug syndicate in Johor, two Vietnamese women among arrested
JOHOR BARU: Police have arrested three suspects, including two female Vietnamese nationals, and seized over RM6mil worth of drugs during a raid at a housing area in Taman Mutiara Rini here. Johor police chief Comm Datuk M. Kumar stated that the state police narcotics department, along with Bukit Aman, launched a special operation encompassing two raid locations from 7.30pm on June 14 until 5am on June 15. 'In the first case, police carried out a raid at a double-storey terrace house, which led to the arrest of a 45-year-old local male and a 34-year-old woman, who is a Vietnamese national. 'Further checks found that the male suspect has been renting the house since April 2023. Besides the arrest, police also found an assortment of drugs at the first location,' he added. Comm Kumar said this in a press conference held at Johor police headquarters here on Monday (June 23). He also said that the male suspect subsequently guided the police to another double-storey terrace house, which was also rented by the syndicate, situated approximately a kilometre away from the initial location. 'Following the suspect's guidance, the police subsequently conducted a second raid, resulting in the arrest of another 23-year-old Vietnamese woman. 'All three suspects tested positive for drugs while further checks found all three suspects have no prior criminal records against them,' he added. Comm Kumar said that the police seized 40.6kg of ecstasy powder, 1.3kg of ketamine, and 368g of ganja from two locations, valued at over RM6.8mil. He added that besides the drugs, police also seized two cars, RM49,150 and SGD2,580 (RM8,835) in cash respectively, and various jewellery worth more than RM17,600. 'This brings the total value of all the seized items to more than RM7.1mil. Initial investigation found that the syndicate has been using the two houses for processing and packaging as well as storing the drugs. Comm Kumar said the three suspects were under remand until this Thursday (June 26) to assist with the investigations, as police believe there are other individuals involved in the syndicate. He added that the case was being investigated under Section 39B of the Dangerous Drug Act 1952 and Section 6(3) of the Immigration Act 1959/63. 'The success of this operation is due to the close cooperation between the Johor police narcotics department and Bukit Aman, including public information,' he said. Comm Kumar urged the public to continue relaying information on any criminal activities, including drug trafficking, by contacting the state police hotline number at 07-2212999.
Time of India
17-06-2025
- Time of India
Cops raid hookah parlour, nab four
Nagpur: In a late-night operation, the crime branch unit no. 5 of Nagpur city police raided a cafe and hookah parlour, located on the second floor of Gotmare Complex, Lakshmi Bhuvan Chowk, under the jurisdiction of Sitabuldi police station. Acting on a tip-off, the raid, conducted between 1am and 3.30am, led to the arrest of four individuals and the seizure of contraband worth Rs3,83,580 by the team of senior inspector Sandeep Buwa. The accused, identified as Sunny Borkar, Harsh Khandarkar, Arpan Jamgade, and Brinal Gavare, were allegedly operating the hookah parlour and serving tobacco-based hookah products, which are banned under the Cigarettes and Other Tobacco Products Act (COTPA). The police seized various brands of hookah flavours, prohibited tobacco products, hookah pots, pipes, cash, mobile phones, and a two-wheeler. The police found the accused providing illegal tobacco-based hookah to customers. The seized items and the accused were handed over to Sitabuldi police station for further investigation.
BusinessToday
23-05-2025
- Business
- BusinessToday
Malaysia's Labour Market Remains Resilient, Q1 Data Review
Malaysia's labour market demonstrated continued strength in the first quarter of 2025, according to a recent review by the Department of Statistics. The nation recorded a substantial labour force of 17.23 million individuals, maintaining a stable unemployment rate of 3.1 per cent. The report highlighted a significant year-on-year expansion of the labour force, growing by 2.7 per cent to reach the aforementioned 17.23 million. This growth propelled the labour force participation rate upwards by 0.2 percentage points to 70.7 per cent. The number of employed persons also saw a positive trend, increasing by 3.0 per cent to 16.70 million. Consequently, the employment-to-population ratio rose to 68.6 per cent. In parallel, the number of unemployed individuals experienced a decline of 5.0 per cent, translating to 27.5 thousand fewer people without jobs, resulting in the steady unemployment rate of 3.1 per cent. A notable trend was the continued decrease in the number of employed persons working less than 30 hours per week, which fell by 11.1 per cent compared to Q1 2024, reaching 242.7 thousand individuals. This decline was attributed to strong domestic demand throughout the first quarter of 2025, leading to a drop in the rate of time-related underemployment to 0.9 per cent. Furthermore, skill-related underemployment, which disproportionately affects tertiary-educated individuals, also saw a positive development. It decreased by 0.7 percentage points to 35.7 per cent in Q1 2025, although it still constitutes a significant portion of the employed population with higher education. On the demand side, the economic sector witnessed a 1.4 per cent year-on-year increase in the total number of jobs, reaching 9.06 million. Filled jobs, representing 97.9 per cent of the total, also grew by 1.4 per cent to 8.87 million. Job openings, indicated by the number of vacancies, rose by 1.2 per cent to 194.1 thousand during the quarter. Additionally, the number of jobs created in the economic sector saw a substantial increase of 3.4 per cent year-on-year, reaching 33.2 thousand. The report also linked the robust labour market performance to Malaysia's overall economic expansion of 4.4 per cent. Labour productivity, measured by value added per employment, registered an increase of 1.3 per cent, reaching RM24,580 per person in Q1 2025. Total hours worked also surged by 3.3 per cent to 9.76 billion hours, resulting in a 1.0 per cent growth in labour productivity per hour worked, bringing the level to RM42.5 per hour. The Department of Statistics concluded that Malaysia's labour market remains resilient, supported by stable domestic activity and consistent government policies. Growth in key sectors such as manufacturing and services, coupled with strong domestic demand and government initiatives like investment incentives and infrastructure development, have fostered a favourable economic environment. These factors are expected to continue supporting employment creation, particularly in high-skilled sectors, and contribute to improved household incomes.
