Bank Negara Malaysia Reduces OPR to 2.75% - First Adjustment Since 2023
Bank Negara Malaysia’s Monetary Policy Committee (MPC) has decided to reduce the Overnight Policy Rate (OPR) by 25 basis points to 2.75%, lowering the ceiling and floor rates to 3% and 2.5%, respectively. This decision comes amid a global economic environment that continues to grow, supported by strong consumer spending, resilient labor markets, and fiscal stimulus. However, uncertainties such as geopolitical tensions and fluctuating trade policies pose potential risks to global financial stability and commodity prices. In Malaysia, economic activity remains robust, with continued growth expected in the second quarter, driven by strong domestic demand and steady exports. Employment and wage gains, particularly in domestic-oriented sectors, along with supportive policy measures, are sustaining household spending. Investments are also expected to grow, supported by public and private sector projects and strategic national initiatives. Export prospects may improve due to pro-growth global policies and sustained demand for key products like electrical and electronic goods. Inflation remains moderate, with headline and core inflation averaging 1.4% and 1.9% respectively in the first five months of 2025. With global cost pressures contained and domestic demand steady, inflation is expected to remain subdued. The ringgit’s performance will continue to be shaped by external factors, though Malaysia’s solid economic fundamentals and reforms offer support.
Date: July 9, 2025
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Sabah's Property Market Sees Significant Growth
Sabah's property market has experienced notable growth over the past three years, reflecting the state's robust real estate sector. As of November 30, 2024, the total transaction value for Memorandum of Transfer (MOT) activities, including property ownership transfers, reached RM5.17 billion. This represents a substantial increase compared to RM3.57 billion for the entire year of 2023 and RM4.1 billion in 2022. The 2022 spike was largely attributed to a post-COVID rush, with many delayed transactions being promptly processed by the land office.
The Sabah Lands and Surveys Department has been instrumental in facilitating this growth by implementing various initiatives to enhance service delivery. These include the introduction of online services, mobile counters, and the establishment of a Land Dealings Electronic Submission System (LADESS) to streamline processes and improve efficiency. Additionally, the department has focused on capacity building and training for its personnel to ensure the effective implementation of these initiatives, further contributing to the positive trajectory of Sabah's property market.
Dec. 7, 2024
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Sabah: New measures to help Bumiputra buyers
Starting December 1, 2024, Sabah became the first state in Malaysia to implement transformative amendments to the 30% Bumiputra (Bumi) housing quota policy, aiming to empower Bumi buyers and enhance market inclusivity. Under the revised policy, Bumi buyers now have the right to choose their preferred house lots instead of being allocated specific lots by developers. Restrictions on reselling Bumi-allocated homes have been removed, allowing buyers to sell their properties without limitations. Additionally, developers must extend any discounts offered to non-Bumi buyers—such as a 15% rebate—to include the existing 5% Bumi discount, ensuring equitable benefits. These changes align with the state government's efforts to reduce bureaucracy and improve the liquidity of the property market.
The policy also ensures parity in property value between Bumi and non-Bumi-owned properties, empowering Bumi buyers to maximize their investments. Industry leaders, such as Sabah Housing and Real Estate Developers Association (Shareda), view this as a historic move that increases flexibility and opportunities for Bumi buyers while boosting the state’s property market. The changes are expected to stimulate property transactions, attract local and foreign investments, and drive economic growth across sectors like tourism, hospitality, and retail. Simplified processes, such as applying directly to the Lands and Surveys Department for restriction removal, further enhance the ease of transactions for Bumi buyers. The policy retains protections for native land titles, ensuring legal rights remain preserved while fostering a more dynamic and inclusive housing market in Sabah.
Nov. 30, 2024
Tags: Sabah
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