Analysts Upgrade 2022 GDP Forecast For Malaysia, OPR Hike Impact To Be Felt Within Three To Six Months, Says Knight Frank And, More

22 Nov 2022

15th November – 21st November

Analysts have upgraded their gross domestic product (GDP) growth forecast for Malaysia, following the strong growth registered in the third quarter of this year.

Meanwhile, Knight Frank Malaysia believes the fourth hike in the overnight policy rate (OPR) will have a significant impact on the country’s real estate industry.

 

1) Analysts upgrade 2022 GDP forecast for Malaysia

Analysts have upgraded their gross domestic product (GDP) growth forecast for Malaysia, following the strong growth registered in the third quarter of this year.

RHB Investment Bank Bhd (RHB Investment Bank), for instance, revised its 2022 GDP growth estimate to 7% year-on-year, reported Borneo Post.

“The balance of risks to our estimate is tilted towards a print of 7.5 to 8.5% on back of stronger than expected Q3 2022 GDP growth and potential resiliency of economic activity in Q4 2022 (though at a slower pace),” said RHB Investment Bank.

MIDF Amanah Investment Bank Bhd’s research arm, MIDF Research, also upgraded its 2022 GDP forecast from 6.6% to 8%.

“Even with 0% quarter-on-quarter in the next quarter, the 2022 GDP growth would be at least 7.7%,” it said.

The research house expects the positive labour market condition and continued improvement in income to support consumption activity in Q4 2022 and going into next year.

For 2023, RHB Investment Bank expects Malaysia’s GDP to grow at 4.5% year-on-year.

 

2) OPR hike impact to be felt within three to six months, says Knight Frank

Wooden blocks with the word Rate, up arrow and wooden house. The concept of raising interest rates on mortgages. Growing interest on the loan. Rates are a type of property tax system

Knight Frank Malaysia believes the fourth hike in the overnight policy rate (OPR) will have a significant impact on the country’s real estate industry.

Sarkunan Subramaniam, Knight Frank Malaysia’s Group Managing Director, expects the market to experience the effects of the hike within the next three to six months, reported the New Straits Times.

“The economic crisis is already being felt as living expenses rise while earnings remain flat. I think individuals will be affected this time,” said Sarkunan.

Notably, Bank Negara Malaysia (BNM) has raised the OPR by 25 basis points (bps) in November to 2.75% – marking its fourth hike this year.

“We should give this fourth increment some serious thought. Those who are making a good living and are not heavily geared might not feel the pinch,” he said.

“But a person with a low salary and heavy living expenses will undoubtedly feel the strain. For someone who is only making enough money each month to get by and has a family to support, an increase of RM300 from the first rate hike to the fourth is quite a significant sum,” he added.

 

3) YNH sells two assets for RM422.5mil

YNH Property Bhd is selling its two assets – AEON Seri Manjung and 163 Retail Park shopping centres – for a total cash consideration of RM422.5 million to ALX Asset Bhd.

Notably, AEON Seri Manjung and the land on which it is erected is being sold for RM152 million, while 163 Retail Park is going for RM270.50 million, reported the New Straits Times.

AEON Seri Manjung Shopping Centre forms part of AEON Seri Manjung in Seri Manjung, Perak.

163 Retail Park, on the other hand, is a stratified seven-storey shopping centre that sits on 226,860 sq ft freehold site at Mont Kiara, Kuala Lumpur. Completed in 2018, it is part of mixed development Kiara 163, which comprises a serviced apartment tower, office tower and hotel suite tower.

ALX Asset will pay for the acquisition via the issuance of medium-term notes (MTN) under a proposed asset backed MTN programme (ABS MTN programme) at up to RM500 million in nominal value.

YNH intends to use the revenues from the sale to pay off bank debts, replenish working capital as well as cover projected costs for the sale and the proposed ABS MTN programme offering.

 

4) Gabungan AQRS partners PR1MA to develop RM335.95mil housing project in Kuantan

terrace house under the blue skies

Gabungan AQRS Bhd (GBGAQRS) has agreed to jointly develop a 40.80ha site in Kuantan, Pahang into a residential project with PR1MA Corporation Malaysia.

With a gross development value of about RM335.95 million, the project will comprise 1,065 single-storey terrace homes and single-storey semi-detached homes, reported the New Straits Times.

It will be developed in three stages, with the first stage featuring 320 housing units, 328 homes in the second phase and 417 homes in the third phase. Notably, the project is expected to be completed within 84 months.

The construction contract for the project will be awarded to GBGAQRS’s wholly-owned subsidiary, Monolight IBS Building System Sdn Bhd.

“The development would add synergy to the company’s property and construction business and could contribute positively to both the property and construction division’s financial performance,” said GBGAQRS.

 

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5) Buyers of abandoned Genting Valley project receive first instalment of refund

Those who acquired a housing unit at the abandoned Genting Valley Batang Kali project, known as The Genting Valley, have finally seen the light at the end of the tunnel.

This comes as the first instalment of refund has been paid to the buyers of Phases 2 and 3 of the abandoned project, reported the New Straits Times.

Property developer NCT Noble Sdn Bhd, along with scheme manager CRS Corporate Services Sdn Bhd, held the check handover to the buyers.

Started in 2000, The Genting Valley is a residential project comprising 665 bungalow plots that are distributed over five phases. The original developer, however, abandoned the project in 2004.

Datuk Seri Yap Ngan Choy, Group Founder and Managing Director of NCT, said the restoration project reflects the strength and competence of the company.

“We are pleased to be on board for this rehabilitation project and to be given the opportunity to do what we do best,” he said.

NCT received the green light to resurrect the project on 5 August 2017, due to its strong track record as the “White Knight” as well as its solid financial performance.

 

6) 2023 is the year of evolved traveller, says Hilton chief

Hilton President and CEO Chris Nasetta believes that 2023 would be the year of the evolved traveller, while 2022 is the year of the changed traveller.

In its 2023 trends report, Hilton shared that a global survey showed that today’s travellers are searching for a balance of human and technological innovations, embedded wellness experience as well as deeper connections and care.

The study underscored the changing preferences among passengers and how excited they are about their upcoming travels, reported the New Straits Times.

In fact, the study showed that 84% of customers expect to travel as much as they do now in 2023.

Nassetta noted that the main focus of visitors for 2023 will be to use travel to forge stronger bonds with loved ones, friends, clients, co-workers, cultures and the earth.

Based on the study, travellers also place high importance on their wellness, with 50% of the respondents planning their travel for next year with priorities and goals related to holistic wellness.

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