Latest news with #KRI
New Straits Times
13 hours ago
- Business
- New Straits Times
Mismatch widens as housing supply overlooks majority demand
KUALA LUMPUR: The supply of residential properties in Malaysia continues to diverge from actual demand, with developers favouring mid- to high-end units while most Malaysians, particularly those in the B40 and M40 income groups, struggle to afford suitable housing. Dr Suraya Ismail, Director of Research at Khazanah Research Institute (KRI), said this supply-demand imbalance has led to a growing number of unsold units and limited options for lower-income buyers. "This raises a crucial question. Are Malaysians being presented with a clear and transparent view of the actual state of the property market?" Despite evident signs of oversupply, especially in the Klang Valley, developers are still launching new projects at a steady pace, she said. Current data shows a substantial volume of completed but unsold properties, mainly in the mid- to high-end segment, such as serviced apartments and condominiums in urban centres, she told Business Times. Suraya noted that developers, often backed by strong financing or public-private partnerships, remain confident in long-term market corrections or sustained demand. But she questioned whether such optimism is justified in light of persistent affordability issues. According to her, Malaysia's housing market is suffering from a mismatch between effective demand, defined as what households can afford, and the type of housing being supplied. While prices have risen steadily over the years, they've outpaced income growth, making homes unaffordable for a significant share of the population. The Real Estate and Housing Developers' Association Malaysia (Rehda) declined to respond to questions sent by Business Times. Meanwhile, Suraya said that despite an evident glut in the higher-end segment, housing supply continues to target the top income groups. For example, in 2022, Malaysia's affordable median house price was RM228,168, three times the median annual household income. Yet, only 10.7 per cent of new launches were priced below RM200,000. In contrast, units priced above RM500,000 made up 24.7 per cent of launches in 2022 and rose to 39 per cent in 2023. Between 2020 and 2023, most transactions, 709,283 units, were for homes priced below RM500,000. Properties under RM300,000 made up 56.2 per cent of total sales, highlighting strong demand in the affordable segment. Suraya noted that a closer look at 2023 sales and overhang data reveals the same pattern. Units priced below RM300,000 accounted for 53 per cent of total sales. Yet of the 25,816 overhang units recorded in the fourth quarter of 2024 (Q4 2023), 70.6 per cent were homes priced above RM300,000. "This suggests a strong demand for affordable housing following the population's income brackets, while higher-priced properties encounter challenges in finding buyers. The data highlights the struggle of higher-priced units to attract buyers, resulting in a higher share of overhang," she said. Suraya added that the market has consistently scored above 3.0 on the housing affordability index, signifying 'seriously unaffordable' conditions. Between 2012 and 2014, the median house price rose from RM170,000 to RM270,000 at a compound annual growth rate (CAGR) of 23 per cent, while household income grew at less than half that rate, only 11.7 per cent. "In high-density areas like Kuala Lumpur, Selangor, and Johor, many developments are struggling to sell remaining units. This trend highlights a growing mismatch between supply and actual demand, especially in an environment of stagnant wage growth and tighter lending rules. As stated earlier, the supply is not catering for the realities on the ground. Why, then, are new project approvals continuing unabated? "Approvals are given at the state level and local municipal councils, but there is a gap in the information for the efficient coordination of house prices and the general affordability of the local populace. This could be assisted if developers could give an indication of the feasibility of sales for their plot of land, whether it caters to effective demand, that is, the pricing threshold that the local population could afford, or not exacerbating the glut of supply (overhang and unsold units) within the area, for the approval of development order (DO)." While official NAPIC figures highlight the growing property overhang, defined as units completed but unsold for more than nine months, Suraya cautioned that the problem may be larger than reported. "Are we only seeing the tip of the iceberg? Well, it can be an underestimation," she said. Rethinking property investment: Is it still worth it for Malaysians? With evolving market dynamics, rising rental risks, and slowing capital gains, many are questioning whether property remains a sound investment for the average Malaysian. Suraya pointed to a growing rental supply in areas like Mont Kiara, Bangsar South, KL Eco City, Subang, Shah Alam, and Cyberjaya. Tenants now hold the upper hand, while landlords often accept rental yields below their mortgage costs, a sign of deeper market weaknesses, she said. She cautioned against the practice of setting rental rates solely to cover mortgages, calling it a strategy used by speculative rather than professional landlords. "Rental yields should not be pegged to cover mortgage costs. This is normally practised by speculative landlords, not professional landlords. Speculative landlords artificially inflate the rental market by wanting to cover their mortgage payments, rather than deriving the price of rentals based on the liveable conditions of the homes supplied," she said. She noted that in any mature market, rental trends serve as a litmus test for real demand. Units that can't fetch viable rental rates often reflect oversupply, pricing mismatches, layout inefficiencies, or poor supporting infrastructure. "We must find a way to extract more information about rental prices for analysis. One method is to formalise the rental market with a Rental Tenancy Act. Then, we can access and monitor the rental market to protect the interests of landlords and tenants," she said. She also raised concerns over Joint Management Bodies (JMBs) enforcing "minimum rental rates" to preserve property values, a practice that, while legal, can distort real demand and limit affordability. While framed as a move to preserve property value, critics argue this amounts to cartel-like behaviour that artificially props up prices, hurting owners who need rental income and distorting market signals. "If such practices are indeed happening, they obscure the true softness in rental demand and delay the price corrections needed to make properties accessible to genuine end-users. What are the implications for prospective buyers, investors, and policymakers? "Unfortunately, the values or the opportunistic behaviour of people become institutionalised in the JMB's house rules. That is the democratic disadvantage of consensus, as stipulated in the Strata Act, because it calls for voting on any house rules, and the majority wins. "Currently, most collective actions are for profiteering and not catering to individual plights nor the common good of the less advantaged in the group. Such is the state of our value system. However, distressed individual unit holders could try to negotiate the house rules of the majority by invoking their claim on property rights to the COB." To address the oversupply of high-rise units that fail to match demand, she urged the Housing Ministry (KPKT) to monitor the market using robust housing indicators, such as rent-to-income and price-to-income ratios. "Housing is viewed as both an asset and a shelter. If housing is viewed as an asset-based income, then the CAGR of household wages will never be commensurate with the rapid price escalation of housing as an investment. Therefore, slower capital appreciation is good for the general affordability of all first-time home buyers. She highlighted the conflicting interests in the market, between homeowners, investors, professional landlords, and those seeking affordable shelter. Indicators like the rent-to-income ratio are vital for shaping targeted policies, such as when and how to transition people from public to private rentals. Suraya stressed the importance of promoting both renting and ownership as viable choices but warned that affordability must come first. Speculative activity, particularly in the mid-income housing segment, is damaging the market's long-term sustainability, she said. Suraya said tackling the growing imbalance in the property market requires inclusive dialogue among all key stakeholders, including KPKT, local councils, town planners, Rehda, the National House Buyers Association, the National Property Information Centre (Napic), auctioneers, secondary market specialists, economists, and urban policy researchers. "It is not about who leads and who adopts, but more about building a consensus for the overall 'collective or common good'. This might mean that we need to seriously discuss the housing sector's objectives for all types of diverse interests." Is the property glut worse than it seems? While NAPIC data reports tens of thousands of unsold completed units, the figures fall short of capturing the full extent of Malaysia's housing oversupply, according to Tan Wee Tiam, executive director of Olive Tree Property Consultants. Notably absent are under-construction units with little buyer interest, also known as "shadow inventory", and vacant purchased units that remain unoccupied, adding to supply without meeting real housing needs. Tan noted that the overhang is largely concentrated in the RM500,000 and above segment, far beyond the affordability of most Malaysians. Meanwhile, genuine demand persists in the sub-RM300,000 range, but these affordable units often lack adequate connectivity, infrastructure, and amenities. Aggressive sales tactics, such as rebates, furnishing packages, and deferred payments, may artificially boost take-up rates, masking the true health of the market and distorting price signals, he told Business Times. "Napic data merely gives macro data on the overhang figures and value. We believe it is more useful for Napic or another centralised data centre to collate data on all the sold units when a caveat is lodged, buyers nationalities and other essential information. "Prices, type of property, built-up area, etc., will be crucial for developers and the prospects to better understand the true picture of the property market in a timely manner. Identities of the vendors and purchasers should be provided so that we can know whether they are related party transactions," he said. Tan said that disclosing buyer nationalities can shed light on the real extent of foreign interest, helping distinguish genuine international demand from market hype. Furthermore, he said that understanding whether units are owner-occupied or investor-held (and possibly left vacant) is vital for assessing true occupancy trends. Such transparent, granular data would not only enhance market insights for developers and policymakers but also empower buyers and investors to make more informed decisions in an increasingly opaque landscape, he said. Tan believes that property is still a viable investment for the average Malaysian. He said that property has long been regarded as a cornerstone of wealth creation in Malaysia, but evolving market dynamics have raised critical questions about its viability for the average investor. He noted several factors reshaping the landscape. "Wages haven't kept pace with rising home prices. Malaysia's median house price is now about five times the median annual income, well above the affordability benchmark of 3.0. Persistent oversupply in the mid- to high-end segment has led to depressed rental yields, often in the range of just 2 per cent to 4 per cent, which may not even cover mortgage repayments and maintenance costs. "Tighter lending conditions and rising interest rates have further limited access to home financing, especially for younger and lower-income groups. As a result, many younger Malaysians are diversifying into alternative investment avenues such as Real Estate Investment Trusts (REITs), exchange-traded funds (ETFs), and digital platforms offering robo-advisory services, which often promise better liquidity, lower entry costs, and less risk exposure." Still, he said property investment is not entirely off the table. It remains a viable long-term asset class for those who conduct careful due diligence, understand demand patterns and local market conditions, adopt a realistic investment horizon, and are prepared to start small and scale up gradually. Tan noted that timing also plays a critical role.
Daily Express
2 days ago
- Daily Express
Indo cooperation against drug smuggling
Published on: Friday, June 27, 2025 Published on: Fri, Jun 27, 2025 By: Amir Anuar Text Size: Jasmin also called on the public not to be quick to point fingers at the authorities when crimes occur, but instead play a role as the 'eyes and ears' of the enforcement agencies. TAWAU: The cooperation network between Malaysian and Indonesian police along the border of both countries in combating drug smuggling activities has never declined – instead, it continues to be strengthened. Tawau District Police Chief ACP Jasmin Hussin said the initiative is in line with the Royal Malaysia Police (PDRM) top leadership commitment to enhancing ties with law enforcement authorities in neighbouring countries. 'We have already held two meetings between the Sabah Police Commissioner and the Police Chief for North Kalimantan (Kapolda),' he said. Jasmin added that his team also maintains close ties with the Republic of Indonesia Consulate (KRI) in Tawau, particularly in sharing information related to drug seizure and arrest cases. According to him, the cooperation established between the police forces of both countries has been effective, including in the investigation of criminal suspects and suspicious activities. On concerns about drug smuggling into neighbouring countries, which may tarnish Malaysia's image, he said all enforcement agencies, including the police, remain fully committed to upholding the law. 'This includes situations that happen right before our eyes, involving collaboration with relevant agencies such as the Royal Malaysian Customs Department, the Immigration Department and the Domestic Trade and Costs of Living Ministry. 'There have actually been many successful drug seizure and arrest cases in Tawau, although not all are disclosed to the media or public,' he said. He explained that not all operations, arrests or seizures can be shared publicly as they must first go through a proper investigation process. He is optimistic that the more than 50 per cent drop in the crime index compared to last year is a key indicator of law enforcement effectiveness in Tawau. 'In the context of enforcement, community support is vital to maintaining peace and public safety, as security forces cannot act alone. 'So, we urge all public members to support investigations and operations, particularly by sharing credible information,' he said. Jasmin also called on the public not to be quick to point fingers at the authorities when crimes occur, but instead play a role as the 'eyes and ears' of the enforcement agencies. He said the Government now offers various platforms for discreet information sharing, including the Volunteer Smart Petrol app, where identities are kept confidential. 'Specifically in Tawau, if anyone is found to be involved in drug distribution, rest assured that action will be taken – regardless of the individual or network involved,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
31-05-2025
- General
- Daily Express
Learn about own nation, Indo kids at Community Learning Centres urged
Published on: Friday, May 30, 2025 Published on: Fri, May 30, 2025 By: Lagatah Toyos Text Size: Aris (centre) with Indonesian children at the Mostyn Estate CLC in Kunak. TAWAU: Indonesian children studying at Community Learning Centres (CLCs) under plantation companies in Malaysia are urged to use their gadgets to seek knowledge and information about Indonesia. Chief Representative of the Consulate of the Republic of Indonesia (KRI) in Tawau, Aris Heru Utomo, said they need to learn more about their country in order to deepen their pride in being Indonesian. 'Use your mobile phones not just to search for entertainment but seek knowledge and information about Indonesia as much as possible,' he said. He noted that Indonesia is a vast country made up of over 17,000 islands, rich in natural resources and home to various ethnicities and religions. 'With a strong love for their homeland, they will understand their nation, including its geography, natural beauty and unity in diversity,' he said. He also encouraged Indonesian children in Sabah to appreciate the song 'Tanah Airku' composed by Saridjah Niung Bintang Soedibjo, better known as Ibu Sud, as it reflects national values and love for the homeland. Advertisement 'The lyrics show that no matter where Indonesians wander, they will always love their homeland. 'To love means to be proud, to uphold the good name and to defend Indonesia through attitudes and actions… And since you are students, your actions should be to study, study and study,' he said during a visit to the Mostyn Estate CLC in Kunak, as part of the 'Consulate Goes to Community Learning Centre (CLC)' programme, which included a flag presentation ceremony by 57 of its students. He said the flag ceremony is important to nurture the spirit of Indonesian nationalism, while recognising the four national symbols: the red and white flag, the national language, the Garuda Pancasila emblem and the national anthem Indonesia Raya. He emphasised that it is the duty of all Indonesians, including students born and raised in Sabah, to honour and uphold these four symbols, which were forged by the nation's heroes. During the visit, Aris also presented a set of Pancasila Education Guidebooks for teachers and students from grades 1 to 9, along with a 2025 calendar featuring Unesco-recognised elements of Indonesia's intangible cultural heritage. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
New Straits Times
30-04-2025
- Business
- New Straits Times
KRI: Night markets a key driver of Malaysia's economy
KUALA LUMPUR: Night markets have emerged as a key driver of the Malaysian economy, especially during economic downturns, according to a study by Khazanah Research Institute (KRI). In its second discussion paper under the night market project, it said that night markets are found to be an "essential lifeline", particularly in times of crisis. The sector offers employment opportunities to individuals who have been laid off and provides a platform for those seeking to transition into business or self-employment to sustain their livelihoods, said the paper. The discussion paper titled "Why Night Markets Matter?: A Review of Literature" is authored by Nur Sofea Hasmira Azahar and Dr Mohd Amirul Rafiq Abu Rahim. It examines the evolving economic, cultural, and social significance of night markets in Malaysia. "This publication builds upon KRI's earlier work published in January this year on the overall hawking landscape by shifting the focus specifically to night markets as dynamic, multifunctional spaces that blend entrepreneurship, community life, and cultural vibrancy. "While night markets continue to serve as accessible economic platforms for diverse groups, there remains a need for a deeper and more systematic understanding of how they adapt to urbanisation trends, evolving food consumption patterns, rising living standards, and digital transitions," said Nur Sofea. The discussion paper underscored that night markets are deeply embedded in Malaysian society and are seen as an alternative to supermarkets. Night markets have also benefitted many amid the shifts in consumption patterns where more individuals are opting for food away from home. "With a wide variety of stalls offering goods at generally more affordable prices, night markets also help ease financial pressures, particularly in the face of current economic challenges." However, several emerging issues surrounding night markets require deeper examination. KRI said that findings from the literature review revealed that the evolution of night markets is closely tied to urbanisation trends and changing food consumption patterns. There is also limited empirical work that explores how these shifts intersect with licensing frameworks, spatial access, and trader resilience. "Persistent gaps in waste management, food safety compliance, and enforcement by local authorities suggest systemic weaknesses that cannot be resolved through regulation alone. Moreover, rising living standards and evolving consumer expectations around health, convenience, and retail experiences may increasingly challenge the traditional night market model, while the benefits and risks of the food-away-from-home consumption trend remain underexplored. "Although digitalisation is reshaping operations, evidence on its full impact, particularly in promoting inclusive entrepreneurship among women, youth, and B40 groups, remains limited," it added. Through this ongoing work, KRI aims to generate new empirical insights that capture the lived realities of night market traders and consumers across diverse income and demographic groups.
Shafaq News
11-03-2025
- Politics
- Shafaq News
March 11, 1970 Agreement: President Barzani asserts Kurdish rights undeniable
Shafaq News/ On Tuesday, Kurdistan Region (KRI) President Nechirvan Barzani affirmed that Iraq is still paying the price for 'failing' to implement the March 11, 1970 Autonomy Agreement, urging political forces to foster peaceful coexistence. In a statement marking the 55th anniversary of the agreement—led by Kurdish nationalist leader Mullah Mustafa Barzani—the president described it as 'a historic turning point' in the Kurdish struggle, calling it the first official document to acknowledge part of the Kurdish people's legitimate rights and the legal foundation for their current achievements. 'No authority in Iraq can deny our rights again.' The March 11 Agreement, he noted, was a model for a fair resolution based on understanding and dialogue. However, Iraq's authorities later withdrew from it, leading to decades of conflict and wars that brought only "tragedy and suffering" to the country. "Even today, Iraq continues to pay the price for failing to uphold this agreement, true partnership, and the constitutional rights of all its components," he added. Barzani further emphasized that stability can only be achieved through democracy, pluralism, joint efforts, and the reinforcement of justice and equality, noting, "Iraq's future depends on enforcing the constitution, strengthening genuine partnership, and building a secure country." 'Unity and cohesion are the true guarantees for protecting constitutional gains and securing future generations," he stressed, urging political forces in the Region and Iraq to act with national responsibility in strengthening federalism, safeguarding the rights of all Iraqi communities, and fostering peaceful coexistence. About The Agreement The Autonomy Agreement, signed on March 11, 1970, between the Iraqi government and Kurdish leader Mullah Mustafa Barzani, followed the first Iraqi-Kurdish war. It aimed to create an autonomous region comprising the three Kurdish provinces (Erbil, Duhok, and Al-Sulaymaniyah) and other nearby areas with a Kurdish majority, as determined by the census. At the time, it was the most significant attempt to resolve the long-standing Iraqi-Kurdish conflict. The agreement recognized Kurdish national rights, ensuring their participation in the Iraqi government and the use of Kurdish in education. However, a final solution to the Kirkuk issue was not reached, awaiting a determination of the province's ethnic composition.
