Economic News

Tekkun · Aug 25, 2016

Frodo said:
I suppose higher costs in Malaysia may also be an indication that it is more affluent and progressing well?

In a way, it is. Nowadays locals do not want to work in factories anymore. They prefer IT or Office work.
Thailand is now experiencing what Malaysia had in the 80s. The illegals from Cambodia or Burma or Laos is flooding their padi fields. Pushing out the locals to towns. So it is a matter of time, office labour cost would rise. Samething will happen to Vietnam.

jasonjst · Aug 25, 2016

xebay11 said:
Good! What took them so long to move? Theirs is low tech and highly labour intensive business. My family business was also labor intensive and Singapore Govt also told us to move out of Singapore in the 90s, so we diversified and went into property investments long ago, no more labor woes.

Please lah what industries are high tech in Singapore that cant be done in neighboring countries ? I belief all industries can be shifted out of Singapore except the most expensive cabinets in the world .

Frodo · Aug 25, 2016

jasonjst said:
Please lah what industries are high tech in Singapore that cant be done in neighboring countries ? I belief all industries can be shifted out of Singapore except the most expensive cabinets in the world .

Costs of doing business going up in Singapore..,,even a bin centre (sounds like a shopping mall for collecting trash LOL!) can cost almost $900K :eek:

jasonjst · Aug 25, 2016

Frodo said:
Costs of doing business going up in Singapore..,,even a bin centre (sounds like a shopping mall for collecting trash LOL!) can cost almost $900K

Maybe the main contractor fabricate it in JB for 90K and install it in Singapore and charge them 900K , cheap cheap !

rotikok · Aug 25, 2016

xebay11 said:
And ordinary people who earn RM can only feel high costs when they spend in Johor.

Malaysian who earn RM can feel like king when they spend in thai or medan, batam.

Tekkun said:
High tech, high value, high margin industries stay in Singapore
Low tech, low margin, low value industries go to Johor
Only after rejecting from Singapore, excesses only flow to Johor.
Saying goes "Beggars cannot choose".

jasonjst said:
Please lah what industries are high tech in Singapore that cant be done in neighboring countries ? I belief all industries can be shifted out of Singapore except the most expensive cabinets in the world .

Im afraid singapore might one day following taiwan path. High tech is fiercely competitive. High tech, Taiwan lose to korea, middle end lose to china, lower end lose to viet Philippines.

Xisiqomelir · Aug 25, 2016

mpan12 said:
The article mentioned: "Transportation costs in Singapore are 2.7 times higher than in New York." What rubbish! This is not true at all.

http://web.mta.info/metrocard/mcgtreng.htm

vs

https://www.smrt.com.sg/Journey-with-Us/Fares-Claims

Would suggest otherwise, after factoring currency conversion.

snowbird · Aug 25, 2016

Tekkun said:
High tech, high value, high margin industries stay in Singapore
Low tech, low margin, low value industries go to Johor
Only after rejecting from Singapore, excesses only flow to Johor.
Saying goes "Beggars cannot choose".

Sarcastic, but quite true though.
But MY still need to keep improve the infrastructure and political stability and compete head on with her neighbours within the Asean for this foreign investment. Still preference from SG due to close proximity.

snowbird · Aug 25, 2016

jasonjst said:
Please lah what industries are high tech in Singapore that cant be done in neighboring countries ? I belief all industries can be shifted out of Singapore except the most expensive cabinets in the world .

Many industries.
Biotech, aerospace and financial businesses is just some of the many.
And SG is the pioneer in water research that even offer her expertise to many countries.
These mentioned industries requires plenty of highly skilled and professional people to do also research and product development.
There are many such people in MY but unfortunately, many also prefer to work in SG for bettet wage and working environment.

tstar · Aug 25, 2016

probably will be like hk.
finance stays while manufacturing moves out.
pls do not underestimate the power of automation and robotics and the desire to cut down costs and to maximise profits.

rotikok · Aug 25, 2016

tstar said:
probably will be like hk.
finance stays while manufacturing moves out.
pls do not underestimate the power of automation and robotics and the desire to cut down costs and to maximise profits.

Now HK rich are moving out. Shanghai will overtake HK as finance hub for yuan product. Hk ady facing deindustrialistion.

snowbird · Aug 25, 2016

tstar said:
probably will be like hk.
finance stays while manufacturing moves out.
pls do not underestimate the power of automation and robotics and the desire to cut down costs and to maximise profits.

Exactly, that's why companies like that Yongnam relocating their manufacturing to JB is good for them and SG, this way lesser Banglas and other foreign workers will be needed.
Fintech will also be the major industry for SG for now and the future and being a major financial hub in the region does help in fund sourcing for venture capitalists and e-commerce, etc, and base for wealth management, insurance broking, etc.

snowbird · Sep 1, 2016

Malaysia's CIMB lowers 2016 loan growth target

MY second largest bank has shut down 22 branches nationwide since August last year to reduce operational costs.
One more branch is also scheduled to be closed soon.
The bank is also lowering its loan growth target for the year to 6-7% for 2016 from the initial target of 10%.

While Maybank said loans growth will likely continue to moderate to 6-7% this year from 7-8% in 2015 on the back of easing household loans growth.
Maybank had also as neither denied nor confirmed the rumour that 27 branches in the country will be closed down.
The banks are in anticipation the sluggish property and car market and also slower company / corporate growth ahead.

http://www.reuters.com/article/cimb-results-idUSL3N1BA23L

Tekkun · Sep 1, 2016

snowbird said:
Malaysia's CIMB lowers 2016 loan growth target

MY second largest bank has shut down 22 branches nationwide since August last year to reduce operational costs.
One more branch is also scheduled to be closed soon.
The bank is also lowering its loan growth target for the year to 6-7% for 2016 from the initial target of 10%.

While Maybank said loans growth will likely continue to moderate to 6-7% this year from 7-8% in 2015 on the back of easing household loans growth.
Maybank had also as neither denied nor confirmed the rumour that 27 branches in the country will be closed down.
The banks are in anticipation the sluggish property and car market and also slower company / corporate growth ahead.

http://www.reuters.com/article/cimb-results-idUSL3N1BA23L

Current loan rejection rates 80% by Malaysian banks.
HNWI alone cannot apply for loans as new requirements are in place. You have to show past 3 years income tax submission plus last clearance payment receipts as part of loan application submissions. So if last income after deducting all current commitments like car loans, credit cards, house loans, etc and if it don't show enough to pay for new loan monthly mortgage, rejection is high.
Don't think you got millions in the bank, you sure get bank loans.

Frodo · Sep 1, 2016

Tekkun said:
Current loan rejection rates 80% by Malaysian banks.
HNWI alone cannot apply for loans as new requirements are in place. You have to show past 3 years income tax submission plus last clearance payment receipts as part of loan application submissions. So if last income after deducting all current commitments like car loans, credit cards, house loans, etc and if it don't show enough to pay for new loan monthly mortgage, rejection is high.
Don't think you got millions in the bank, you sure get bank loans.

Wow...80% rejection rate? :eek:

That's why I am very grateful that despite the little in my bank account I was allowed to have two housing loans approved. It could easily have been a no-go for me from the start. Now I just hope I can stay afloat for a while.:o

Tekkun · Sep 1, 2016

Frodo said:
Wow...80% rejection rate?

That's why I am very grateful that despite the little in my bank account I was allowed to have two housing loans approved. It could easily have been a no-go for me from the start. Now I just hope I can stay afloat for a while.:o

New ruling took effect from April 2016.
Damn...I kena rejected also last week. :smile:

Frodo · Sep 1, 2016

Tekkun said:
New ruling took effect from April 2016.
Damn...I kena rejected also last week.

If bank also reject you, the rest of us peasants mati liao..:(

Tekkun · Sep 1, 2016

Frodo said:
If bank also reject you, the rest of us peasants mati liao..:(

Best part is I want to borrow only RM500k which is less than 50%. That also cannot. How?

Frodo · Sep 1, 2016

Tekkun said:
Best part is I want to borrow only RM500k which is less than 50%. That also cannot. How?

Rejected because you borrowed too little! LOL! Maybe they were expecting you to borrow bigger amounts. :wink:

Tekkun · Sep 1, 2016

Our banking system is screwing up the property market. But it is trying to tell developers not to build too many.
For me, still manageable. Sign the S&P already so now have to borrow from Ah Longs... :biggrin:

sgcount · Sep 1, 2016

Congrats to those who have already gotten their bank loans to buy properties!

The banks' stricter lending now is one of the reasons why not many are buying Malaysian properties, eg Iskandar.

But on the other hand, I think they are also afraid of the oversupply and bubble forming.

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