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The Star
6 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
11-07-2025
- New Straits Times
RM34,874 worth of seized cash, case items disposed of by Kluang police
KLUANG: Police today disposed of case items worth RM34,874 in a court-approved exercise involving 134 completed investigation files. Also written off in the exercise was RM16,874 in confiscated cash. District police chief Assistant Commissioner Bahrin Mohd Noh said the items disposed of fell into four categories, namely, contraband, gambling-related paraphernalia, general case items, and cash, all of which had received clearance for disposal from the court. "Of the total, RM16,874 involved the destruction of seized cash, while the remaining value came from miscellaneous items no longer required for prosecution," Bahrin said in a statement today. He said the disposal was part of efforts to reduce the long-term storage burden and avoid unnecessary clutter in the district's evidence storerooms. Also present at the exercise held at the district police headquarters, were his deputy, Superintendent Nik Mohd Azmi Husin; Criminal Investigation Department chief Assistant Superintendent Zahari Idris; and acting district Management head Assistant Superintendent Mohd Nor Isa.
New Straits Times
09-07-2025
- Sport
- New Straits Times
Emotional debut for Mirabel at Evian Championship
KUALA LUMPUR: Mirabel Ting will be drawing strength from a deeply personal place as she makes her professional debut at the Evian Championship, which gets underway on Thursday at the Evian Resort Golf Club in France. The 19-year-old Sarawakian, one of the most celebrated amateur golfers ever produced by Malaysia, said she would be competing in honour of three close family members — her late father, grandmother and grandfather. "I'm definitely excited to make my professional debut and play in my first Major," said Mirabel, who took everyone by surprise with her decision to turn professional just one year before her graduation at Florida State University (FSU). "I think I'm playing for something bigger than myself this week. My dad, my grandma and recently my grandpa passed away, so I'm playing for them. "I feel like whatever results I achieve, whether I miss the cut or make the cut, it doesn't really matter. It's more about honouring all three of them. Regardless of the result, I think they'll be proud of me." Mirabel earned her place in the US$8 million (RM34 million) fourth women's Major of the season after becoming the 2025 ANNIKA Award recipient, a prestigious accolade given to the top female collegiate golfer in the United States. Capping off a superb junior (third) year at FSU, Mirabel claimed five individual titles and rose to No. 2 in the World Amateur Golf Ranking (WAGR), the highest ever achieved by a Malaysian, male or female, before making the leap to the professional ranks. Mirabel has had ample time to acclimatise to the famed and picturesque Evian Resort course, having played 27 holes in practice, and already knows what it will take to navigate the challenging layout. "Finding the fairway off the tee is really important. And a few putts dropping here and there would help!" said Mirabel. "On the par-threes, the water's in play and they're long, and we have a lot of shots going into the par-fours that are like 180 yards. So just getting it on the green and making pars on this golf course would be great. "The greens are really true and the putts can be fast or slow, depending on where the water is going and where the mountain is." This week's start at the Evian Championship marks Mirabel's second career appearance on the LPGA Tour, having impressed as the leading Malaysian finisher at last year's Maybank Championship, where she tied for 12th. Had she been playing as a professional at the time, that result would have earned her over US$40,000 (RM170,000). Now that she is officially in the paid ranks, making the cut will be crucial. Advancing to the weekend, where the top 65 and ties make it through after 36 holes, would guarantee a minimum payout of US$16,800. Also in the field is Jeneath Wong, who enters this week's Major as an amateur after her breakthrough win at the Women's Amateur Asia-Pacific Championship earlier this year in Vietnam. The Pepperdine University senior will be hoping to make the cut at a Major for the first time, having missed the halfway mark at both the 2023 US Women's Open and 2025 Chevron Championship.
Borneo Post
09-07-2025
- Sport
- Borneo Post
Sarawak golfing sensation Mirabel Ting to honour late father, grandparents during pro debut in France
KUCHING (July 9): Golfing sensation Mirabel Ting Ern Hui will be playing for a higher purpose when she makes her professional debut in the fourth women's major of the year, the Amundi Evian Championship, which starts tomorrow (Thursday) at the Evian Resort Golf Club in France. The highly-rated Mirabel earned her place in the US$8 million (RM34 million) showpiece as the 2025 recipient of the Annika Award presented by Stifel, given annually to the leading female golfer on the US collegiate circuit. The 19-year-old from Miri ended her time in the amateur ranks with a superb junior year at Florida State University, racking up five individual titles and soaring up to second place in the World Amateur Golf Ranking. 'I'm definitely excited to make my professional debut and play in my first major. I think I'm playing for something bigger than myself this week. 'My dad, my grandma, and recently my grandpa passed away, so I'm playing for them. I feel like whatever results I achieve, whether I miss the cut or make the cut, it doesn't really matter. 'It's more about honouring all three of them. Regardless of the result, I think they'll be proud of me,' shared Mirabel. Having got in 27 holes of practice at the picturesque Evian Resort course, she noted that finding the fairway off the tee is of paramount importance. 'And a few putts dropping here and there would help! On the par-threes, the water's in play and they're long, and we have a lot of shots going into the par-fours that are like 180 yards. So just getting it on the green and making pars on this golf course would be great. 'The greens are really true and the putts can be fast or slow, depending on where the water is going and where the mountain is,' explained Mirabel. This will be Ting's second start in an LPGA Tour event, following last year's Maybank Championship at Kuala Lumpur Golf & Country Club when she finished as leading Malaysian in joint 12th position. Mirabel will be joined at Evian Resort by Malaysian amateur Jeneath Wong, who got into the field courtesy of her victory at the prestigious Women's Amateur Asia-Pacific Championship in Vietnam earlier this year. A senior at Pepperdine University in the United States, Jeneath will be keen on a good showing having failed to progress past the halfway stage in her two previous major starts at the 2023 US Women's Open and the 2025 Chevron Championship.
The Star
26-06-2025
- Business
- The Star
Muted impact on firms
PETALING JAYA: The mandatory Employees Provident Fund (EPF) contribution for foreign workers will have little impact on most businesses for now, except for those with heavy reliance on foreign labour. The impact will be greater if such companies also operate in price-sensitive markets where cost pass-through is limited. Sectors that would be most affected are plantation, gloves, technology and construction, according to CIMB Securities Research. 'Overall, we view the mandatory 2% EPF contribution as mildly negative for corporate earnings. 'We expect the earnings impact from higher labour costs – alongside the recent expansion of the sales and service tax – to be reflected progressively in the results for the second half of 2025, with a more pronounced full-year effect in 2026,' stated the research house. Starting with October's wage, foreign workers and their employers must each contribute 2% of the monthly pay to the EPF. CIMB Research foresees the initial cost impact to likely be manageable. 'However, pressure may build if the contribution rate for foreign workers is gradually increased in line with that of Malaysian workers,' it said in a note. The advantage of this EPF plan, according to economist Geoffrey Williams, is that it is being rolled out at a 'very low rate and very low cost'. This avoids imposing substantial additional cost pressures on businesses, at a time when many industry players are complaining about margin compressions. On the flip side, however, the 2% EPF contribution will hardly benefit the foreign workers, said Williams. 'The employees will save virtually nothing, the EPF will have millions of extra members but most will have virtually no savings and employers will have minimal extra costs. 'For example, for a foreign worker on a minimum wage of RM1,700, the new scheme will cost RM34 per month (employer's portion). For employers complaining of higher costs due to this, they need a reality check. If they cannot afford RM34 per month, they do not have a viable business model.' As for those with large numbers of foreign workers, Williams urged them to reduce dependency on low-wage workers if such employers feel that the cumulative cost of 2% contribution is too high. 'Employ Malaysians or invest in technology,' he said. The EPF announced that this mandatory contribution will apply to all foreign workers in Malaysia – excluding domestic helpers – who possess valid passports and work permits issued by the Immigration Department. Previously, the EPF contributions for foreign workers were voluntary. This policy change should not come as a surprise to the market, as it was first announced in Budget 2025. Under the revised framework, foreign workers will be allowed to withdraw their EPF savings upon returning to their home countries, provided their work permits have expired and there is evidence that their permanent employment has ended. With the new mandatory policy, CIMB Research said the EPF stands to benefit from higher annual contributions. 'Based on an estimated 2.5 million foreign workers earning an average monthly salary of RM2,000, the combined 4% contribution from employers and employees could generate approximately RM2.4bil in additional annual contributions to the EPF.' Meanwhile, the Small and Medium Enterprises Association of Malaysia (Samenta) national president Datuk William Ng described a 2% contribution as 'reasonable' and not something that Samenta would object to. He also told StarBiz that most SMEs which engaged foreign workers did not have a large number of such workers. 'In fact, we are more concerned over the availability of these funds to the workers upon them ceasing to work in Malaysia. 'Ideally, they should be able to withdraw the fund in its entirety upon termination of their employment and such funds allowed to be repatriated to their home country to repay loans, build houses and any other uses they may deem fit,' he said.
