2025: A really bad year for non-property owners

Wealth gap could widen for those without homes

As we usher in 2025, Malaysia’s property market is on a bullish trajectory. However, while this spells good news for property owners and investors, it is shaping up to be a tough year for those who have yet to get on the property ownership ladder.

Let’s explore why this year might be a turning point for tenants and non-property owners—and why waiting any longer to invest could widen the wealth gap even further.

Setting the stage

The year 2024 marked the beginning of the property market’s recovery after the pandemic-induced slump. Several key factors contributed to this rebound:

• Low inflation and unemployment: Inflation remained at a modest 1.9%, while the unemployment rate dropped to its lowest since the lockdowns at 3.2%.
• Foreign direct investment (FDI) growth: Malaysia’s government actively pursued policies to attract foreign investment, bolstered by political stability and a weak ringgit, making Malaysian assets more appealing.
• Stable interest rates: The US Federal Reserve’s decision to cut interest rates by 0.25% helped usher in a lower-interest environment globally.

These factors collectively fuelled a surge in property transactions and higher rental rates. The National Property Information Centre (NAPIC) reported that property transactions reached record highs in Q1 to Q3 2024, with 311,211 units sold, valued at RM162.96bil — a 6.2% increase in volume and a 14.3% increase in value year-on-year.

Why 2025 could be worse for non-owners

With property prices and rentals on the rise, non-property owners face a growing challenge. In some areas, rental rates have increased by as much as 20% year-on-year. The Home Rental Index rose by 5.5%, reflecting sustained demand, especially in urban centres like the Klang Valley.

These rising costs are driven by several factors:

• Undersupply of New Launches: Developers have slowed the pace of new launches due to heightened scrutiny following recent structural issues, such as the sinkhole incident. This supply constraint is expected to persist for the next few years, driving rental demand higher.
• Rising Demand from Foreign Investors: With the ringgit at a historic low, foreign investors are snapping up properties in Malaysia, particularly in prime areas like KLCC, Bangsar and Bukit Bintang. This influx has increased rental yields, making it harder for local tenants to afford.
• Infrastructure Projects: The government’s ambitious infrastructure projects, such as Bandar Malaysia, will further boost property demand. KLCC Properties has been appointed as the master developer for this project and I anticipate that it will replicate its successful development model from Kuala Lumpur City Centre.

Economic stability driving confidence

Malaysia’s improving economic fundamentals continue to drive property investment. Household debt remains manageable at 70% of GDP while loan approvals for personal loans, vehicle financing and credit cards are at their highest levels in years.

This strong credit environment indicates that Malaysians are financially equipped to invest in property, despite rising prices. Personal wealth growth, coupled with a stable government and promising job market, provides further confidence.

NAPIC’s Q3 2024 data paints a clear picture of the market’s momentum:

• 112,000 property transactions in Q3 2024: This represents a 3% increase year-on-year.
• Total transaction value of RM57.3bil: Up 13.7% from Q3 2023.
• Residential sub-sector growth: Property sales reached 192,484 units valued at RM78.17 billion in Q1 to Q3 2024, marking a 4.9% and 6.9% increase, respectively.
• Overhang properties reduced by 15.2%: The total overhang dropped to 21,968 units, down from its peak in recent years.

Despite these gains, Kuala Lumpur, Perak and Johor respectively remain the states with the highest overhang units, highlighting that not all markets are equally buoyant.

Rental market trends

Rental rates have been steadily climbing, driven by increased demand and a constrained supply of new properties. In Klang Valley, rental yields have risen dramatically as workers return to the city post-pandemic and international tenants seek accommodation in prime locations.

The short-stay rental market, such as Airbnb, has also rebounded. Weaker ringgit values have increased domestic tourism, further driving demand for short-term rentals.

Based on current trends, the property bull run is expected to begin this year and continue beyond. Key predictions for this year include:

• Transaction volumes: Maintaining a 10% variance compared to the average of 2022–2024 transaction levels.
• Rental growth: Particularly in Tier 1 areas, where undersupply continues to push prices up.
• Property values: Anticipated to rise to their highest rate in four years.
• New launches: Expected to return to pre-pandemic levels as developers regain confidence.

Bad news for tenants

For tenants and those without property assets, 2025 looks set to widen the wealth gap further. Rising rental rates, increasing property values and constrained supply mean that the cost of not owning property will only grow over time.

With mega infrastructure projects like Bandar Malaysia set to transform the landscape and foreign investment continuing to flow into the country, the property market’s upward trajectory shows no signs of slowing down. Property ownership is no longer just about having a home—it is about securing financial stability and capitalising on Malaysia’s growth story.

For those still sitting on the sidelines, the window of opportunity is narrowing. The longer one waits to enter the property market, the more expensive and challenging it will become to catch up. In 2025, not owning property could be the biggest financial setback for Malaysians.

Source link

‘Good year for property’

Frank Knight Malaysia's Wong said Johor is an obvious market that is expected to grow.

KUALA LUMPUR: The property market is poised for growth in 2025, with a significant focus on industrial property which will be underpinned by supporting government policies and increase in foreign direct investments (FDIs), says Knight Frank Malaysia executive director of research and consultancy Amy Wong Siew Fong.

The increase in FDIs will lead to a higher number of multinational companies opting to kick start operations and thus drive the economy.

Citing a recent report conducted by Knight Frank titled “Real Estate Highlights”, Wong said respondents had ranked data centres, industrial and logistics as the top three growing real estate investment sectors for 2024.

“Moving into 2025, the green light is for data centres, industrial and logistics, while office, hospitality and retail are rather stagnant,” she said during a panel session at the 18th Bursa-Hong Leong Investment Bank (HLIB) stratum focus series here yesterday.

She highlighted that aside from the Klang Valley, Johor is an obvious market that is expected to grow, especially considering the development of the Johor-Singapore Special Economic Zone (JS-SEZ) followed by Penang.

However, in terms of investment, Wong pointed out that despite the Iskandar region playing a huge role for the JS-SEZ, the market may not be as exciting as the Johor Baru City Centre area.

“If you are talking about the JS-SEZ, I think the industrial sector will continue to be a key sector to look at and manufacturers will continue to look into areas surrounding Senai and Kulai – which always have consistent demand due to its good fundamentals,” she said.

Wong said there has also been an increase in interest in the Sarawak and Sabah region, considering its strong drive towards the green agenda.

Asked about expected downside risks for the year, Wong said there are factors that are impossible to predict such as changes in policies and rate cuts.

“With all these chess pieces in place, I think 2025 is going to be a good year for the property market,” she said.

Sharing the same optimism, HLIB group managing director and chief executive officer Lee Jim Leng said affordability remains a key factor for the property market moving forward.

“In 2025, we are expecting higher wages for civil servants and the introduction of a higher minimum wage.

“The incremental increase in disposable income is a much welcome factor in catalysing demand and raising affordability for properties across the country,” she said, adding that the current 3% overnight policy rate and stable mortgage rates are also expected to bode well for the property sector.Positive indicators such as stable employment growth rate and an expected gross domestic product growth of 4.9% for 2025, are expected to provide the right conditions for sustained growth within the property sector.

According to the National Property Information Centre, Malaysia’s property transaction values soared to RM105.65bil in the first half of 2024, marking an impressive 23.8% year-on-year growth and the highest in five years.

As of the nine months of 2024, the number was noted to have increased to RM162.96bil.

The Kuala Lumpur Property Index has increased by 31.17% in 2024 and the residential overhang situation was noted to have improved, with a 12.3% reduction in volume of unsold properties.

Source link

Related:

Malaysia's economy poised for continued growth in 2025 ...

Malaysian property market poised for steady growth in 2025

Unmasking the danger of privacy coins

 

Technology supporting cryptocurrencies is used in the real world for drug trafficking, human trafficking, sexual exploitation and smuggling of goods 

Cryptocurrencies that emphasise anonymity and encryption are frequently used by criminals

USING state-of-the-art technology to support cryptocurrencies is a double-edged sword. It facilitates cross-border payments and remittances as well as financial inclusion for the underbanked or unbanked but is increasingly used for criminal activities.

It is used in the real world for drug trafficking, human trafficking, sexual exploitation and smuggling of goods, rather than just cybercrime like ransomware attacks.

According to a European Union Agency for Law Enforcement Cooperation (Europol) report in 2022, cryptocurrencies are being used for all types of crime requiring financial transmissions, the scale of which is difficult to estimate. Europol noted that criminals have also become more sophisticated in using cryptocurrencies to in complex money-laundering schemes.

Both Europol and the Basel Institute on Governance, which also published a report in 2022, point to the rapid progress of technologies involving cryptocurrencies and the challenges governments have in keeping up through legislation and law enforcement or the need to develop and adapt through investigative technologies and techniques.

It is only now that anti-money laundering (AML) and know-your-customer (KYC) processes common in transactions involving fiat money are starting to take into account cryptocurrency transactions.

Bank Negara and the Securities Commission (SC) have guidelines for cryptocurrencies and have hired specialists to monitor or regulate them. Now, the Malaysian Anti-corruption Commission (MACC) is looking at raising the capabilities of its officers who address cases in which cryptocurrencies are used to conceal financial trails.

The move involves further specialised training as well as acquiring advanced technology and equipment. In Malaysia, people can own cryptocurrencies and they can be traded on licensed digital exchanges, but are not considered legal tender.

Some say that the MACC is late to the game as the police already have the capabilities through the Kuala Lumpur-based Cryptocurrency Analysis Laboratory, which was jointly opened with the United Nations Office on Drugs and Crime in 2022. It is the first such laboratory in South-east Asia.

In fact, a series of fraud or scams leveraging cryptocurrencies have been crippled through this crime laboratory capability going from past news reports.

Also, Bank Negara and the SC have been exploring solutions for the past year or two.

A lawyer specialising in cryptocurrency projects shares that its basically track-and-trace to follow the money trail through the blockchain, which is essentially a digital ledger where all transactions are recorded and confirmed. Unlike cash, cryptocurrency transactions are highly traceable from start to finish, and with the right tools, can be mapped out how illicit funds have moved and how they are being funnelled.

When these tools acquire more data, they can also flag out wallet addresses that have been sanctioned or linked to illegal sources, which means authorities will also know whether the funds are tainted.

Compared with the banking system, tracing funds through the blockchain’s public digital ledger is easier, even when these funds cross borders.

According to the lawyer, the police can easily trace illicit fund flows even if a circuitous route is used. Banks have limited tracing ability and cooperation of foreign correspondent banks and law enforcement will be needed once funds cross borders.

Banking laws in other countries may differ pertaining to privacy and disclosure and in most cases, a court order is needed to request information.

There is a need to better understand altcoins such as privacy coins, as these cryptocurrencies that emphasise anonymity and encryption are frequently used by criminals.

There are many privacy coins including Monero, Dash and Zcash but Monero seems to be the cryptocurrency of choice among criminals. They work by enabling anonymous transactions through obscuring both sender and receiver addresses.

What makes them even more useful is that the transaction amounts are also hidden through the use of an obfuscated public ledger specifically for privacy.

The MACC as well as other law enforcement agencies will have to equip themselves with the right tools and know-how to confront these challenges.

Europol describes it thus: “Often illicit funds do not flow straight from wallet to wallet. They instead travel through a multi-step process involving different financial entities, many of which are novel and are not yet part of standardised, regulated financial payment markets.

“Obfuscation methods and other countermeasures continue to be developed and used by criminals.”

Other methods used by criminals include over-the-counter trading in which tracing the trade is almost impossible. Initially used for smaller transactions, there are signs that it is now being used for much bigger ones.

The enormity of the challenges confronting law enforcement agencies such as the MACC is that privacy coins are hard to track as most have been delisted by cryptocurrency exchanges under pressure from governments and no one knows how prevalent the use of these coins is.

Criminal networks often use unlicensed exchanges with looser AML and KYC processes, enabling transactions that involve a complex series of steps to throw off authorities, before eventually being traded for fiat currency.

Source link

Yes, cops can check your phone

 KUALA LUMPUR: The police have the right to check an individual’s mobile phone should there be a police report lodged against that person, an investigation on the individual, or if they suspect the individual is involved in a crime.

Inspector-General of Police Tan Sri Razarudin Husain said this is in accordance with Section 3(3) of the Police Act, which outlines the role and responsibilities of the police.

“Furthermore, the police have the right to check a person’s mobile phone if they suspect the individual or have received information indicating that the person may have committed an offence, as outlined in Section 23(1) of the Criminal Procedure Code (CPC),” said Razarudin.

He was responding to a recent viral video in which a man complained about the frequency of mobile phone checks by the police.

Razarudin explained that the police are also permitted to check a mobile phone to ensure there is no lewd or threatening content on the device.

“Section 249 of the Communication and Multimedia Act 1998 gives the authorities access to computerised data, including a mobile phone.

“Section 116B of the CPC grants the authorities access to a mobile phone, classified as computerised data, when checking a person who is suspected of committing a crime.

“However, such authority is given to police officers with the rank of Inspector and above,” he said.

Under Section 20(g) of the Police Act, Razarudin said it gives police officers the authority to compel an individual to provide information when asked.

“Therefore, no one can question the police’s authority to check a mobile phone during roadblocks.

“However, these checks must be conducted respectfully and in accordance with existing laws. They should not be carried out randomly or without reasonable cause,” he added.

The IGP said Section 292 of the Penal Code could be used to inspect mobile phones if a person is found with lewd and obscene materials.

“It is an offence that enables an arrest without a warrant.

“Having an online gambling application on a mobile phone is also an offence that enables an arrest to be made without a warrant under the Open Gaming House Act 1953,” he said.

“Checks without a warrant can be conducted if an officer has reason to believe that delaying the search to obtain a warrant could compromise the investigation, such as destruction of evidence.

“In such cases, the police may seize the mobile phone first and inspect it later.

“Refusing to cooperate could result in detention for obstructing the police.”

He also said the act of taking and inspecting a mobile phone belonging to members of the public must be based on a relevant investigation or if the police officer suspects that the individual has committed an offence.

“If the police ask for your mobile phone, you have the right to ask why they are requesting it and under what law you are being investigated.

“It’s also advisable for the phone’s owner to be present when the device is being taken, unless the individual is being detained and the phone is seized,” he added.The IGP also advised the public to file a complaint or a police report if they are the subject of random checks without reasonable grounds.

“We don’t want the public to be subjected to unreasonable checks without any basis or grounds.

“If they encounter such incidents, report it immediately,” Razarudin added.

Rakyat must also know their rights, say criminal law experts

PETALING JAYA: While the police do have the authority to inspect handphones, it cannot be conducted arbitrarily and must be grounded in specific justifications, according to criminal law experts.

Lawyer Syahredzan Johan emphasised that police powers to access personal devices are restricted to certain defined circumstances, ensuring that such checks are not performed without valid reasons.

CLICK TO ENLARGE

“The police cannot demand an individual to hand over their handphone simply to browse through it.

“They can only do so if the person is suspected of committing a crime or is under investigation,” he said.

Syahredzan, the Bangi MP, further explained that the police have the authority to examine a person’s handphone only if the individual has been arrested on suspicion of a crime.

“If one is not arrested or under suspicion of committing a crime, the police cannot check the handphone simply because they want to have a look at it. This is not allowed,” he said.

Syahredzan advised individuals stopped by the police and asked to hand over their phones to politely inquire about the specific offense they are suspected of committing.

“However, I advise against resisting if the police insist because it could lead to accusations of interfering with police duties.

“Instead, comply and file a report afterward,” he added.

The question of whether the police can randomly stop someone who has not committed any crime to check their handphone was recently brought to light in a viral video shared by a member of the public.

Following this, several netizens shared their experiences of having their handphones randomly checked at police roadblocks and in public areas.

Some of them reported that their private chats and photo galleries were examined during these checks.

Criminologist Datuk Dr P. Sundramoorthy from Universiti Sains Malaysia stated that the police generally do not have automatic or unrestricted authority to seize or check an individual’s phone without giving reasonable cause.

“The police may request access to a phone only if there is a valid reason, such as suspicion of criminal activity or when conducting an investigation under specific laws, such as the Criminal Procedure Code or the Communications and Multimedia Act,” said Sundramoorthy.

“However, this does not mean that they have carte blanche to search your mobile phone at any time.”

Sundramoorthy explained that the police can request to check a handphone only if they have reasonable suspicion that a crime has been committed or if it is part of a criminal investigation.

“Roadblocks, in themselves, do not grant the police the power to inspect personal items unless there is a justifiable reason tied to law enforcement objectives,” he added.

If a police officer demands access to a phone without a valid reason, Sundramoorthy said the individual can assert their right to remain silent or decline to comply.

“If in doubt, individuals are encouraged to remain calm and request clarification on the legal basis of the search, as well as whether they have the option to refuse,” he added.

Sundramoorthy noted that the random checking of a person’s handphone raises concerns about potential violations of the right to privacy.

Senior criminal lawyer Colin Arvind Andrew echoed this view, stating that the power to check a person’s handphone can only be exercised if there is suspicion of a crime or if the person is under investigation.

“If they are asked to hand over their phones for a check, members of the public can inquire about the reason for the request and whether they are being investigated or suspected of committing any offence,” said Andrew.

In 2019, the Home Ministry clarified that the police are not permitted to randomly check a person’s handphone.

They are only allowed to do so if the person is under investigation or suspected of committing a crime.

Source link

Malaysia's experts urge for quick, clear rollout of 5G and MyDigital ID

Buiding the new 5G tower along Jalan Kuchai Lama in Kuala Lumpur

PETALING JAYA: Experts are calling for a clear digital direction and quick implementation for the rollout of the dual 5G network and the MyDigital ID programme, saying that any delay is unacceptable if Malaysia were to position itself as the choice for leading industries and as Asean chairman. Malaysia, said Federation of Malaysian Consumers Associations (Fomca) vice-president Datuk Indrani Thuraisingham, must have the proper infrastructure to support such targets.

“Since we are championing artificial intelligence (AI) development, setting up more data centres and other related fields, it is fair for the relevant authorities as well as stakeholders to prepare the right infrastructure to support these initiatives.

“It is unacceptable to delay it further as it could have an impact on our country’s economy,” she said in an interview yesterday.

Malaysia has secured billions of ringgit in investment in the past year from global tech firms seeking to build critical infrastructure to cater to growing demand for their cloud and AI services.

The Star also reported that while the number of digital nomads in the country has doubled, Internet connectivity remains a major concern for them.Other countries such as China, pointed out Indrani, have even achieved a breakthrough in satellite-to-ground laser communications that could pave the way for sixth-generation wireless technology – or 6G – and other applications, including remote sensing with ultra-high resolution and next generation satellite positioning technology.

“They have gone beyond 5G and we need to keep up with them,” she said.

On Jan 2, China’s Chang Guang Satellite Technology Co, which owns Jilin-1, the world’s largest sub-metre commercial remote sensing satellite constellation, announced that it had achieved a 100 gigabit per second ultra-high-speed image data transmission rate in testing last weekend.

In terms of consumer rights, Indrani said industry players must deliver what they had promised to customers.

“Some of the customers are already paying for 5G connectivity and they need to deliver it.

“In certain places, even in Selangor and Klang Valley, we cannot get proper connectivity, and some still get 4G networks,” she said, adding that there are also complaints of dropped calls.

Malaysia Cyber Consumer Association president Siraj Jalil said any delay in the rollout of a dual 5G network and MyDigital ID programme only reflected the preparedness of the relevant authorities.

“We need to look back at the objectives of the initiative and why it is still delayed,” he added.

“Since (MyDigital ID) will be our future digital identity and represents our position in the digital landscape, the government needs to be clear on it, especially to the stakeholders which is the rakyat,” he said.

Citing the postponement in the integration of the MyDigital ID with the MyJPJ app, he said such disruptions create a bad perception to the users.

“If we cannot integrate our ID into a multi digital system, like JPJ, it shows that is not being set up properly,” he said, adding that this should be fixed

In October last year, MyDigital ID Sdn Bhd CEO Mohd Mirza Mohd Noor had explained that the integration of MyDigital ID with the MyJPJ app was not cancelled but merely postponed.

The delay, he explained, should be looked at as part of an overall strategy to ensure the success of this feature and to improve the user experience.

Sharing her own personal experience, civil servant Siti Nor Mardiah, 33, said a few months ago, the 5G network completely stopped working on her phone.

“When I called my mobile service provider, they said 5G comes under DNB, and not them. As a solution, they told me to use 4G instead. It has been months and I am still using 4G.

“The same goes for my home Wi-Fi, the 5G doesn’t work for some reason (and) 2.4G works better,” she said.

“What baffles me is that this is the situation in Kuala Lumpur, now I can’t imagine how the network is in rural areas.”

Related stories:

Experts urge for quick, clear rollout of 5G and MyDigital ID

Steps being taken to resolve MyDigital ID, 5G network delays

Govt aims to resolve MyDigital ID and dual 5G network ...

Digital Ministry hopes to solve MyDigital ID and 5G issues ...

Related posts:

5G services: TM launches first-phase for unifi customers, 5G services by year-end, door still open to Maxis