Queensbay+Mall.JPG)
RESERVE PRICE : RM500,000.00
PROPERTY TYPE : RETAIL SHOPLOT
Floor area : app 400sf
Lower Ground Floor Queensbay Mall,
Persiaran Bayan Indah, Bayan Lepas Indah, Bayan Lepas, Pulau Pinang
Wednesday, March 18, 2009
Sunday, March 15, 2009
COMING APRIL AUCTION 2009 - PENANG
RESERVE PRICE : RM 280,000.00
PROPERTY TYPE : CONDOMINIUM
Leisure Bay,Jalan Tanjung Tokong Pulau Pinang
Floor Area : app 1,200sf
For further enquiries, please email me at angbb135@gmail.com
COMING APRIL AUCTION 2009 - PENANG
+GL+Garden.JPG)
Reserve Price : RM72,500.00PROPERTY TYPE : A 3 BEDROOM APARTMENT
TAMAN GEMILANG (GL Garden) (20TH FLOOR)
SOLOK PAYA TERUBONG 8, PAYA TERUBONG, 11060 PENANG
Floor Area : app 710sf
SOLOK PAYA TERUBONG 8, PAYA TERUBONG, 11060 PENANG
Floor Area : app 710sf
For further enquiries please email to me at angbb135@gmail.com
How big can NPLs get in protracted downturn?
Job losses may pick up, thereby affecting loan repayment
IT is difficult to predict the level that the non-performing loans (NPLs) ratio can reach in the event of a protracted downturn.
Suffice to say that economists and banking analysts have expressed concern that as the business environment weakens, job losses may start escalating thereby affecting repayment capabilities.
“If this drags on, it can be quite dire,’’ said Ching Weng Jin, acting head of research at ECM Libra. Loans given out last year, he reckoned, would be at the greatest risk of going into default.
For 2008, industry loans growth was strong, at 12.8% or about RM82bil. Of that, close to RM30bil was for business-related loans and another RM30bi was for purchases of properties.
Together, these two segments make up about 75% of the current NPLs. “So these are the segments to keep an eye on,’’ said Ching.
To date, Ching observed, the rate of recovery (previous NPLs reclassified as performing and amounts recovered less sums written off) have been almost the same as that of the formation of new NPLs.
“Therefore, the net increase in NPLs as a percentage of total loans book may not rise significantly unless recoveries weaken,’’ Ching said.
(Net NPLs refer to the gross amount of NPLs less interest-in-suspense less specific provisions. Gross NPLs, on the other hand, are the bad loans over a three-month period as a percentage of total loans.)
A senior analyst who tracks banks said: “Basically, most banks are guiding for credit charge-off rates of 80–90 basis points (bps). For our forecasts, we have generally assumed charge-off rates of 100–120 bps.’’
(Credit charge-off rates refer to loan-loss provisions charged to profit and loss as a percentage of gross loans.)
“Taking the percentage of current NPLs in the business and mortgage sectors, and assuming that new NPLs rise at a slightly more pronounced rate than currently, then you could be seeing anything between RM4bil and RM5bil in new NPLs over the coming year,’’ Ching said.
For December, NPLs by sector indicate that business loans (for working capital and construction) comprised 41% of total loans which stood at RM34bil. Mortgage loans (residential and non-residential) made up 39%.
Ching estimated that on an industry-wide basis, it would only bring the current net NPL of 2.2% up to 2.7% (assuming a 5% industry loans growth). “Most analysts’ notes right now, I notice, assume a 50bps or 100bps rise in their NPLs. I think it’s the former,’’ Ching said.
On a gross basis, the forecasts range from 6% to 9%.
“Faced with the subdued economic outlook over the next 12 months, we forecast gross NPLs to rise up to 7%–9% at the end of this year compared with 4.8% at the end of last year,’’ said Lee Heng Guie, chief economist at CIMB Securities.
Citigroup senior banking analyst, Julian Chua, expects the gross NPL ratio to peak at 6% of loans this year from 4% last year, and remain at that level next year.
“We see the manufacturing and consumer sectors at risk, given the weak export numbers and an expected rise in unemployment,’’ Chua said.
Malaysia’s exports in January fell the most in 28 years, slumping 27.8% to RM38.3bil from a year earlier, according to figures from the International Trade and Industry Ministry. Imports fell 32% year-on-year to RM29.47bil.
Unemployment had risen slightly to 3.7% in 2008 from 3.5% previously.
Source : The Star
Monday March 16, 2009
IT is difficult to predict the level that the non-performing loans (NPLs) ratio can reach in the event of a protracted downturn.
Suffice to say that economists and banking analysts have expressed concern that as the business environment weakens, job losses may start escalating thereby affecting repayment capabilities.
“If this drags on, it can be quite dire,’’ said Ching Weng Jin, acting head of research at ECM Libra. Loans given out last year, he reckoned, would be at the greatest risk of going into default.
For 2008, industry loans growth was strong, at 12.8% or about RM82bil. Of that, close to RM30bil was for business-related loans and another RM30bi was for purchases of properties.
Together, these two segments make up about 75% of the current NPLs. “So these are the segments to keep an eye on,’’ said Ching.
To date, Ching observed, the rate of recovery (previous NPLs reclassified as performing and amounts recovered less sums written off) have been almost the same as that of the formation of new NPLs.
“Therefore, the net increase in NPLs as a percentage of total loans book may not rise significantly unless recoveries weaken,’’ Ching said.
(Net NPLs refer to the gross amount of NPLs less interest-in-suspense less specific provisions. Gross NPLs, on the other hand, are the bad loans over a three-month period as a percentage of total loans.)
A senior analyst who tracks banks said: “Basically, most banks are guiding for credit charge-off rates of 80–90 basis points (bps). For our forecasts, we have generally assumed charge-off rates of 100–120 bps.’’
(Credit charge-off rates refer to loan-loss provisions charged to profit and loss as a percentage of gross loans.)
“Taking the percentage of current NPLs in the business and mortgage sectors, and assuming that new NPLs rise at a slightly more pronounced rate than currently, then you could be seeing anything between RM4bil and RM5bil in new NPLs over the coming year,’’ Ching said.
For December, NPLs by sector indicate that business loans (for working capital and construction) comprised 41% of total loans which stood at RM34bil. Mortgage loans (residential and non-residential) made up 39%.
Ching estimated that on an industry-wide basis, it would only bring the current net NPL of 2.2% up to 2.7% (assuming a 5% industry loans growth). “Most analysts’ notes right now, I notice, assume a 50bps or 100bps rise in their NPLs. I think it’s the former,’’ Ching said.
On a gross basis, the forecasts range from 6% to 9%.
“Faced with the subdued economic outlook over the next 12 months, we forecast gross NPLs to rise up to 7%–9% at the end of this year compared with 4.8% at the end of last year,’’ said Lee Heng Guie, chief economist at CIMB Securities.
Citigroup senior banking analyst, Julian Chua, expects the gross NPL ratio to peak at 6% of loans this year from 4% last year, and remain at that level next year.
“We see the manufacturing and consumer sectors at risk, given the weak export numbers and an expected rise in unemployment,’’ Chua said.
Malaysia’s exports in January fell the most in 28 years, slumping 27.8% to RM38.3bil from a year earlier, according to figures from the International Trade and Industry Ministry. Imports fell 32% year-on-year to RM29.47bil.
Unemployment had risen slightly to 3.7% in 2008 from 3.5% previously.
Source : The Star
Monday March 16, 2009
Wednesday, March 11, 2009
IRB:Tax Cut for One Property
KUALA LUMPUR: The RM10,000 tax deduction for interest on housing loans will only be applicable for one property which is not being rented out.The incentive, announced in the mini-budget on Tuesday, applies to Malaysian citizens who will live on the property, whether it’s a house. flat, apartment or condominium.Inland Revenue Board (IRB) chief executive officer Datuk Hasmah Abdullah said the sales and purchase agreement for the property had to be executed between March 10, 2009, and Dec 31, 2010.
“The tax deduction is given for three consecutive years from the first year the housing loan interest is paid and is effective from the year of assessment 2009.“Also, if there are two or more individuals who are eligible for the tax deduction, each individual is allowed a deduction which is proportionate to the interest they had paid,” she told a press conference yesterday.Hasmah said this deduction, however, would not exceed RM10,000 in total.At Parliament yesterday, Deputy Finance Minister Datuk Husni Hanadzlah tabled the Income Tax (Amendment) Bill 1967 to provide for the changes in the tax regime.
Hasmah explained the other tax incentives announced and said retrenched workers would now benefit from a higher tax exemption on the monies they received from voluntary or mutual separation schemes.“Such workers are now eligible for a RM10,000 exemption per year of service as compared to RM6,000 before and this takes effect from July 1 last year.”She added that those who were retrenched from July 1 last year and had received the RM6,000 exemption could file an appeal at the IRB to get the RM10,000 exemption.Hasmah said banks had also agreed to observe a moratorium on housing loans for retrenched workers from March 10, 2009, to March 9, 2010.
“This means banks would not have to pay tax on the interest accrued for the 12 months, whereas the individual who takes the loan must be a citizen and would have to be retrenched from July 1 last year,” she said.Hasmah added that for employers to benefit from the double tax deduction incentive for hiring retrenched workers, the position being filled would have to be a full-time one and the workers would have to be registered with the Human Resources Ministry.Hasmah said businesses also stood to benefit from the introduction of carrying back of losses, renovation allowances and accelerated capital allowances for machinery.
For the carrying back of losses of up to RM100,000, Hasmah said it would apply for the years of assessment 2009 and 2010, and all businesses would be eligible including sole proprietors and partnerships.As for the renovation allowance, it is limited to RM100,000 from March 10 this year till Dec 31, 2010.There are 16 categories of renovations eligible for the allowance but consultation fees, fine art or antique items are not eligible.Hasmah said accelerated capital allowances for machinery could now be claimed within two years instead of four.
Source : The Star
Thursday March 12, 2009
“The tax deduction is given for three consecutive years from the first year the housing loan interest is paid and is effective from the year of assessment 2009.“Also, if there are two or more individuals who are eligible for the tax deduction, each individual is allowed a deduction which is proportionate to the interest they had paid,” she told a press conference yesterday.Hasmah said this deduction, however, would not exceed RM10,000 in total.At Parliament yesterday, Deputy Finance Minister Datuk Husni Hanadzlah tabled the Income Tax (Amendment) Bill 1967 to provide for the changes in the tax regime.
Hasmah explained the other tax incentives announced and said retrenched workers would now benefit from a higher tax exemption on the monies they received from voluntary or mutual separation schemes.“Such workers are now eligible for a RM10,000 exemption per year of service as compared to RM6,000 before and this takes effect from July 1 last year.”She added that those who were retrenched from July 1 last year and had received the RM6,000 exemption could file an appeal at the IRB to get the RM10,000 exemption.Hasmah said banks had also agreed to observe a moratorium on housing loans for retrenched workers from March 10, 2009, to March 9, 2010.
“This means banks would not have to pay tax on the interest accrued for the 12 months, whereas the individual who takes the loan must be a citizen and would have to be retrenched from July 1 last year,” she said.Hasmah added that for employers to benefit from the double tax deduction incentive for hiring retrenched workers, the position being filled would have to be a full-time one and the workers would have to be registered with the Human Resources Ministry.Hasmah said businesses also stood to benefit from the introduction of carrying back of losses, renovation allowances and accelerated capital allowances for machinery.
For the carrying back of losses of up to RM100,000, Hasmah said it would apply for the years of assessment 2009 and 2010, and all businesses would be eligible including sole proprietors and partnerships.As for the renovation allowance, it is limited to RM100,000 from March 10 this year till Dec 31, 2010.There are 16 categories of renovations eligible for the allowance but consultation fees, fine art or antique items are not eligible.Hasmah said accelerated capital allowances for machinery could now be claimed within two years instead of four.
Source : The Star
Thursday March 12, 2009
Sunday, March 1, 2009
PURCHASING PROPERTY DURING THE DOWNTURN
As the global economy slumped many countries were suffered and due to such many sectors were will dark days. As a result of this many were without jobs and indirectly it affect people to purchase or commit in purchasing of properties. In addition many financial institution have been sceptical of approving loans although BLR has been reduced since the global slump. Not to say that financial institution do not approve loans but just that they are careful on approving i.e. they will consider a lot of factors such as nature of job, salary, other commitments and etc.
Due to such many are afraid to commit in new purchase and on the other hand many will be worried about the capability to maintain their monthly house installment. Normally if a borrower are unable to sustain their payment for around 3 - 4 months it will be classified under NPL ( Non Performing Loan). Most of the banks will call up defaulters to pay their installment first before proceeding with legal action.
If the economy still slows down in coming days, many will falls under this category and therefore a lot of deault properties will be in the market. And I believe there are still many buyers or investors are waiting for such property to be in the market. As the basic principal in earning profit in most businesses is to "buy low and sell high".
Normally such property will be available through auction or foreclosure where banks will engage local auctioneers to conduct the sale of the auction properties.
You can also send me your requirements to my email angbb135@gmail.com in order for us to assist you in finding your right investment.
Due to such many are afraid to commit in new purchase and on the other hand many will be worried about the capability to maintain their monthly house installment. Normally if a borrower are unable to sustain their payment for around 3 - 4 months it will be classified under NPL ( Non Performing Loan). Most of the banks will call up defaulters to pay their installment first before proceeding with legal action.
If the economy still slows down in coming days, many will falls under this category and therefore a lot of deault properties will be in the market. And I believe there are still many buyers or investors are waiting for such property to be in the market. As the basic principal in earning profit in most businesses is to "buy low and sell high".
Normally such property will be available through auction or foreclosure where banks will engage local auctioneers to conduct the sale of the auction properties.
You can also send me your requirements to my email angbb135@gmail.com in order for us to assist you in finding your right investment.
Maybank to reduce BLR next month
The Star
Thursday February 26, 2009
KUALA LUMPUR: Malayan Banking Bhd (Maybank) will reduce its base lending rate (BLR) from 5.95% to 5.55% effective March 2.President and chief executive officer Datuk Seri Abdul Wahid Omar said the revision would enable all borrowers with loans pegged to the BLR to enjoy lower installments on their repayments.The base financing rate (BFR) of Maybank Islamic Bhd will also be revised downwards from 5.95% to 5.55% effective the same date, Maybank said in a statement.Maybank and Maybank Islamic last revised their BLR and BFR respectively on February 3, when rates were reduced from 6.5% to 5.95%.
Thursday February 26, 2009
KUALA LUMPUR: Malayan Banking Bhd (Maybank) will reduce its base lending rate (BLR) from 5.95% to 5.55% effective March 2.President and chief executive officer Datuk Seri Abdul Wahid Omar said the revision would enable all borrowers with loans pegged to the BLR to enjoy lower installments on their repayments.The base financing rate (BFR) of Maybank Islamic Bhd will also be revised downwards from 5.95% to 5.55% effective the same date, Maybank said in a statement.Maybank and Maybank Islamic last revised their BLR and BFR respectively on February 3, when rates were reduced from 6.5% to 5.95%.
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