KUALA LUMPUR, March 20 — After more than two decades, Malaysia will be hosting the Asia Pacific Economic Cooperation (Apec) leaders’ summit in 2020, with the key message of shared prosperity. International Trade and Industry…
PETALING JAYA: The Malaysian Institute of Estate Agents (MIEA) has urged the government to extend the incentives offered during the Home Ownership Campaign (HOC) to first-time home buyers looking to buy from the secondary market.
“MIEA is very appreciative of the fact that the Finance Ministry has introduced new programmes to stimulate the primary market by focusing on first-time home buyers, however it is critical that we should not close the door to first-time property buyers by limiting incentives to only properties offered by developers,” it said in a statement today.
MIEA said that the stamp duty exemption on instrument of transfer, which has been extended from Jan 1 to June 30 this year for properties ranging from RM300,001 to RM1 million, be made available for first-time home buyers of secondary properties.
It also urged the government to offer the stamp duty exemption on instrument of transfer for loans up to RM1 million during the same period to this category of buyers.
“There are significantly more varieties of homes at affordable prices for first-time home buyers within the secondary property market. Based on this premise, we should allow for the exemption of stamp duties to cover the purchase of homes within the secondary market by first-time buyers,” it added.
MIEA has suggested that a “Rent & Buy Programme” be set up for this category of buyers, through a special vehicle or banks to help them in two areas namely funds for a down payment and loan eligibility.
“We also request Bank Negara Malaysia to study and implement a fair and equitable loan approval and streamlined process for first time buyers and/or set up a special revolving fund to fund these buyers.
“This will allow for a shift in the dynamics of the property market, not only allowing for the disposal of ‘overhang’ properties but also unsold completed projects that are vacant,” it said.
According to the National Property Information Centre, 80% of all residential property transactions nationwide are from the secondary market while the primary market makes up the remaining 20%.
As such, MIEA said that the secondary market is the “bedrock” of the property sector, which sustains the real estate market and provides the thrust for its sustained growth.
It also urged the government to provide support to the real estate fraternity and real estate firms to modernise through technology and digitisation, and proposed that a tax exemption be given to those who are keen to invest in digitisation.
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HONG KONG, Feb 26 — Standard Chartered’s pre-tax profit surged to US$3.9 billion (RM15.8 billion) in 2018, the bank said today, after previously warning it had set aside nearly US$1 billion for regulatory fines in the US and Britain. The…
KUCHING: Axiata Group’s recent exit from Singapore’s telco market by accepting the offer to sell its 29.7 per cent-owned equity stake in SGX-listed M1 Tlecommunications asset came as no surprise to analysts. Researchers at AmInvestment Bank Bhd (AmInvestment Bank) said that Axiata Group’s exit was expected, thanks to the increasingly challenging and competitive market conditions […]
KUALA LUMPUR, Feb 18 — The Malaysian Islamic capital market for 2018 was valued at RM1.88 trillion, representing approximately 61 per cent of the country’s overall capital market, says Securities Commission (SC) chairman Datuk Syed Zaid Albar….
KUALA LUMPUR: Berjaya Sompo Insurance Bhd, which is aiming to grow its gross written premiums to RM1 billion this year from over RM900 million last year, is focusing on improving efficiency in 2019 leveraging on digital means.
Berjaya Sompo CEO Tan Sek Kee said with the detariffication of motor and fire insurance tariffs, it needs to look at ways to cut costs.
“We can’t keep on reducing the premiums, with costs remaining the same. It eats into our profit. We’re looking at digital as one of the means to grow the business and improve efficiency,” Tan told the media at a Chinese New Year luncheon today.
He said with digitisation utilising artificial intelligence and robotics, a lot of jobs are going away and banks have started processes to reduce the number of staff.
“We’re not looking at reducing staff at this stage but rather we want to maintain the same number of staff to grow our business in the fastest way. We started a new digital team to look into digital marketing,” added Tan.
He said Berjaya Sompo is on track to become one of the top five general insurers in Malaysia by 2023. It is currently the eighth largest general insurer in Malaysia as of the third quarter of 2018 with a market share of 5%.
Its chief distribution officer Stuart Chua said the market is challenging but growth will be driven by its bancaassurance partnership with CIMB Group Holdings Bhd as well as agency sales.
The insurer has 2,800 agents nationwide.
KUALA LUMPUR, Jan 24 — Digi.Com Bhd's net profit rose to RM1.54 billion for the financial year ended Dec 31, 2018 (FY18) from RM1.48 billion in the previous year. Revenue increased to RM6.53 billion from RM6.34 billion, while basic…
PETALING JAYA: Credit Guarantee Corporation Malaysia Bhd (CGC) is confident of approving RM4.6 billion worth of guarantees and financing benefiting 9,800 small- and medium-sized enterprises (SMEs) in 2019 as it leverages on technology, despite missing its previous year’s target due to the review of infrastructure projects in the country.
President and CEO Datuk Mohd Zamree Mohd Ishak (pix) said CGC is targeting 20% growth in its business income to RM280 million in 2019, from its 2018 target of RM236 million, driven by guarantees, direct financing and asset securitisation deals.
“I’m fairly confident of achieving that (RM4.6 billion target for 2019). We want to reach out more via our iSME (SME online financing and loan) platform. That is one of the many ways we can achieve those numbers,” he told SunBiz in an interview recently, adding that CGC will also strengthen its alliance with banks, of which some deals are in the pipeline.
CGC missed its revised RM4.7 billion approved guarantee and financing target in 2018, but met 78% of it at RM3.68 billion.
The guarantee provider had in last year revised its target from RM4.9 billion previously, taking into consideration the latest economic landscape after several infrastructure projects were being reviewed.
Zamree admitted he was disappointed for not being able to achieve its 2018 target. “I know that we’ve tried our best. I understand there are factors beyond control and globally everyone is affected. Taking that into account, we did fairly well,” he said.
He said the broad strategy for CGC this year will be harnessing technology for it to be more effective in its outreach to SMEs, operational excellence, elevating brand awareness and optimising human capital.
Despite the change in government, Zamree said, the way CGC conducts its business remains the same, as SMEs will continue to be the backbone of Malaysia’s economy and, in relation to this, CGC’s role does not change.
“Our vision has not changed for us to be an effective financial institution (FI) dedicated towards promoting the growth and development of competitive and dynamic SMEs. That vision has been there for many years. When CGC was launched in July 1972, we aimed to reach a situation in which poverty or the lack of capital is no barrier to business. That is still relevant today.
“What changes is how we adjust ourselves with emerging trends, with disruptions within the economy as a result of technology,” explained Zamree.
He highlighted that CGC is on track in its five-year plan (2016-2020) and added digitisation in the plan in 2017 during a review.
CGC is working to enhance imSME, Malaysia’s first SME online financing and loan platform this year.
“We’re talking to FIs whereby we want to have straight-through processing from imSME to disbursements done by banks to reduce turnaround time. Currently it’s just a referral platform.”
imSME was launched on Feb 9, 2018 and serves as an online one-stop centre for SME loan/financing by providing an array of financing products and services that are offered by participating banks and agencies.
“To date, we have over 400 SMEs that have obtained financing from imSME totalling over RM45 million. It is encouraging,” said Zamree.
He disclosed that in the first quarter of this year, CGC will embark on partnerships with three FIs to provide assistance to those in the car industry, to help women entrepreneurs and to use big data in its lending activities.
Since its establishment, CGC has availed over 460,000 guarantees and financing to SMEs valued at more than RM70 billion.