Latest news with #RM580
Rakyat Post
5 days ago
- Business
- Rakyat Post
RM580K Property, RM1,500 Left To Live: The Malaysian Homeownership Reality Check
Subscribe to our FREE A viral social media post about a Malaysian worker earning RM5,500 monthly purchasing a RM580,000 property has ignited fierce discussions about financial literacy and homeownership affordability across local online communities. The controversy began when a concerned individual shared his friend's story via the Facebook page 'Boom Go Employee,' detailing his friend's recent property purchase—a 900-square-foot, 3-bedroom apartment in Malaysia. What caught everyone's attention wasn't just the purchase itself, but the stark financial reality behind it. According to the post, here's how the friend's monthly finances break down: Net income: RM5,500 Car loan: RM700 PTPTN (education loan): RM180 New property monthly payment: RM2,600 The real estate agent calculated the Debt Service Ratio (DSR) at 63.27% and declared it 'qualified' for bank approval. The friend enthusiastically agreed to proceed with the purchase. Why RM2,600 Monthly Payment Becomes RM3,000+ But the original poster wasn't convinced. He broke down the hidden costs that many first-time buyers overlook: Maintenance fees: RM297/month Sinking fund: RM29.70/month Utilities: RM150-200/month Internet: RM100/month Annual property tax: Several hundred ringgit After accounting for all expenses, the friend would have approximately RM1,500 left monthly for food, daily expenses, social activities, and savings. The poster wondered how his friend would manage financially, especially considering the costs of renovation and unexpected expenses. He said the agent mentioned he could withdraw from his EPF Account 2 for renovation. So basically, he has no savings for renovation except for the RM20,000 he's saved up. The poster, who owns an 847-square-foot property himself, shared his own maintenance fee bill, showing charges exceeding RM3,000 for accumulated fees and late payment interest, highlighting the often-overlooked ongoing costs of property ownership. Public Reaction: Divided Opinions The post has generated polarising responses from netizens: Team 'Too Risky': 'Salary RM5.5K buying RM580K property – I'm speechless' '35 years is a long time; many things can happen to your career' 'Don't bite off more than you can chew' Team 'It's Doable': 'No problem with utilities and rent – you'd have to pay those anyway unless you never buy property' 'Better to buy at RM2,500 monthly and rent out 2 rooms for RM1,300 each – at least the property is yours' 'His parents might help cover costs if needed' Beyond Individual Choice: The Market Forces at Play The case highlights several critical issues in Malaysia's property market: Aggressive Sales Tactics : Real estate agents focusing solely on DSR approval without considering total living costs Financial Literacy Gap : Young buyers not fully understanding the true cost of homeownership Social Pressure : The cultural push toward property ownership regardless of financial readiness Hidden Costs : Maintenance fees, sinking funds, and other expenses that can add hundreds of ringgit monthly The poster's analysis reveals that the friend's actual monthly property-related expenses could reach RM3,176 – significantly higher than the RM2,600 mortgage payment alone. This doesn't include renovation costs, which could easily exceed the friend's RM20,000 savings for basic kitchen cabinets and wardrobes. 'The agent isn't wrong – they're just doing their job,' the poster concluded. The DSR calculation passes, and the bank approved it. But if you face financial problems later, don't blame others – blame yourself for not calculating properly. The Waiting Game: A Cautionary Tale for Malaysian Homebuyers While homeownership remains a significant milestone for many Malaysians, this case serves as a stark reminder that qualifying for a loan and being able to afford a property comfortably are two very different things. As property prices continue rising faster than salaries, the debate over what constitutes responsible borrowing versus financial overreach shows no signs of cooling down. The friend's property is expected to be ready next year. Whether his optimism about salary increases and financial management proves justified remains to be seen – but his story has already become a cautionary tale echoing across Malaysian social media. READ MOR E: READ MORE : READ MORE : Share your thoughts with us via TRP's . Get more stories like this to your inbox by signing up for our newsletter.
New Straits Times
18-07-2025
- Automotive
- New Straits Times
Jo Ghani: Govt exploring ways to expand biodiesel use
BANTING: The government is looking to expand the use of biodiesel in the country in its efforts towards a more sustainable fuel source, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. He said the national biodiesel programme, which has been running since 2011, has stalled in terms of adopting a higher blend of palm biodiesel, citing capital expenditure and infrastructure constraints. "In 2019, Malaysia made B7 mandatory for the industrial sector and B10 for the logistics sector, but we have not moved to B20 since then because it requires significant capital expenditure of RM580 million. "So we are working on how to implement it, who should bear the subsidy, and we want to see what happens once it becomes B20, how it will affect diesel prices, all of that needs to be examined," he told reporters after launching the B30 Biodiesel pilot project at SD Guthrie Bhd's Golden Hope Academy in Carey Island today. As for today's event, SD Guthrie Bhd will fully transition to using B30 biodiesel for all its operational machinery and company vehicles that run on diesel at its plantation operations in Carey Island. B30 biodiesel, a blend of 30 per cent palm-based biodiesel and 70 per cent petroleum-based diesel, is a cleaner fuel and can reduce greenhouse gas (GHG) emissions by up to 23 per cent per litre compared to conventional diesel. He said that if biodiesel usage can be widely implemented nationwide, there may be price adjustments for the commodity. However, Johari declined to elaborate on how it might affect the targeted fuel subsidies, saying it is still too early to disclose details. "The use of palm biodiesel offers clear environmental benefits. It not only helps reduce GHG emissions compared to traditional diesel, but it is also sulphur-free," he added.
The Star
18-07-2025
- Automotive
- The Star
Johari: Govt exploring ways to expand biodiesel use
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani BANTING: The government is looking to expand the use of biodiesel in the country in its efforts towards a more sustainable source of fuel, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. He said the national biodiesel program, which has been running since 2011, has stalled in terms of adopting a higher blend of palm biodiesel, citing capital expenditure and infrastructure constraints. "In 2019, Malaysia made B7 mandatory for the industrial sector and B10 for the logistics sector, but we have not moved to B20 since then because it requires significant capital expenditure of RM580 million. "So we are working on how to implement it, who should bear the subsidy, and we want to see what happens once it becomes B20 - how it will affect the diesel prices - all of that needs to be examined," he told reporters after launching the B30 Biodiesel pilot project at Guthrie's Golden Hope Academy in Carey Island today. As for today's event, SD Guthrie Bhd will fully transition to using B30 biodiesel for all its operational machinery and company vehicles that run on diesel at its plantation operations in Carey Island. B30 biodiesel, a blend of 30 per cent palm-based biodiesel and 70 per cent petroleum-based diesel, is a cleaner fuel and can reduce greenhouse gas (GHG) emissions by up to 23 per cent per litre compared to conventional diesel. He explained that if biodiesel usage can be widely implemented nationwide, there may be price adjustments for the commodity. However, Johari declined to elaborate on how it might affect the targeted fuel subsidies, saying it is still too early to disclose details. "The use of palm biodiesel offers clear environmental benefits. It not only helps reduce GHG emissions compared to traditional diesel, but it is also sulphur-free," he added. - Bernama
The Sun
18-07-2025
- Automotive
- The Sun
Malaysia explores biodiesel expansion for sustainable fuel
BANTING: The government is actively exploring ways to expand biodiesel usage nationwide as part of its push for cleaner and more sustainable fuel alternatives, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. He noted that while Malaysia's biodiesel program has been in place since 2011, progress towards higher blends like B20 has been slow due to financial and logistical hurdles. 'In 2019, we mandated B7 for industries and B10 for logistics, but moving to B20 requires RM580 million in capital expenditure. We are studying the financial impact and subsidy mechanisms before implementation,' he explained during the launch of the B30 biodiesel pilot project at Guthrie's Golden Hope Academy in Carey Island. The B30 initiative, led by SD Guthrie Bhd, involves switching all plantation machinery and company diesel vehicles to a 30 per cent palm biodiesel blend. This fuel reduces greenhouse gas emissions by up to 23 per cent per litre compared to conventional diesel. Johari emphasised that wider biodiesel adoption could influence palm oil prices but declined to comment on potential fuel subsidy adjustments, stating it was premature to disclose details. 'The environmental advantages are clear. Palm biodiesel cuts emissions and is sulphur-free, making it a greener alternative,' he added. The government continues to assess the economic and infrastructural feasibility of scaling up biodiesel usage across industries. - Bernama
New Straits Times
15-07-2025
- Business
- New Straits Times
Econpile set for earnings surge after clearing project backlog
KUALA LUMPUR: With legacy projects now behind it and RM580 million worth of jobs in hand, Econpile Holdings Bhd is setting the stage for a sharper earnings recovery, according to CGS International. The research house said this marks a turnaround that could drive a surge of more than 600 per cent in core earnings per share (EPS) in the current financial year. CGS maintained its "Add" rating on the construction and piling specialist with a target price of 46 sen, representing a 21 per cent upside from its current price of 38 sen. "Econpile's orderbook is now free of lingering legacy issues, which should lead to better earnings and margin recovery as new projects kick in," it said in a research note. The company had previously encountered setbacks in several projects, including the Face 3 development, a Mont Kiara job and road upgrading works in Pahang. CGS noted that these issues have since been resolved. With legacy projects cleared, Econpile is expected to rebound from a net loss of RM25.2 million in FY25 to a net profit of RM21.6 million in FY26 and further to RM45.6 million in FY27, supported by stronger revenue recognition and more consistent project execution. This translates into core EPS growth of 652 per cent in FY26, followed by a further 111 per cent in FY27. Just two weeks into the new financial year that began on July 1, Econpile has already secured RM125 million worth of new jobs, or 31 per cent of its FY26 target of RM400 million. This includes a RM98.2 million contract for bored piling and basement works for Malaysia Milk's plant extension in Kapar, Klang, awarded by Eastmont Sdn Bhd and a RM27 million job for two serviced apartment blocks in Selangor. CGS expects more job wins ahead, supported by the rollout of government infrastructure, data centre and industrial building projects. It sees Econpile as a prime beneficiary, given its ownership of the largest fleet of bored pile rigs in Malaysia. "Key re-rating catalysts include the crystallisation of Econpile's memorandum of understanding for the Sungai Klang Link project, which could pave the way for RM1.4 billion worth of piling contracts," it said. Downside risks include potential delays in the rollout of large-scale infrastructure jobs and higher raw material costs, which could affect margins and order flows. With legacy issues resolved and strong job momentum early in the year, CGS said Econpile is well-positioned to deliver stronger results moving forward.
