Miichael Yeoh

Tag: Finance

  • Boost Your Loan Approval Chances in Malaysia

    Boost Your Loan Approval Chances in Malaysia

    Malaysian bank lending (especially for property purchases) is currently shaped by several key monetary, regulatory, and market-demand factors. Rates have been easing somewhat, but approval conditions remain cautious. Below are the latest numbers and trends.

    Current Figures & Trends

    1. Overnight Policy Rate (OPR) & Reference Rates
      • In July 2025, Bank Negara Malaysia (BNM) cut the OPR from 3.00% to 2.75% – the first cut in five years.
      • Major banks have adjusted their Standardised Base Rate (SBR) to 2.75% per annum following the OPR cut.
      • Base Rate (BR) has also been adjusted (for many banks) in line with this, though BR tends to be higher than SBR. For example, Alliance Bank’s BR is about 3.57%.
    2. Base Lending Rate / Base Financing Rate (BLR/BFR)
      • The BLR or BFR (for Islamic financings) for many banks remains in the ~6.35% to ~6.65% range. For example, Maybank’s BLR is 6.40%, Hong Leong Bank’s is ~6.64%, etc. baserate.my+3Maybank2u+3NewPages+3
    3. Effective Housing Loan Rates
      • While the base/reference rates give a starting point, effective lending rates (what borrowers actually pay) tend to be higher because banks add a margin/spread depending on risk, loan amount, tenure, etc.
      • Recent reports suggest effective rates for housing loans are in many cases 4.15% to 5.7% p.a. depending on bank, borrower profile, loan value, promotion, etc. Property Genie
    4. Loan Approval & Volume
      • There was a 25.7% month-on-month increase in approvals of housing-loan applications in July 2025 after a slump in June. Focus Malaysia – Business & Beyond
      • The approval ratio (i.e. approved vs applied) in July 2025 was about 44.8%, up from ~42.6% in June 2025. Focus Malaysia – Business & Beyond
      • On a year-on-year basis, total approved loan volume declined by ~5.1% for that month; cumulatively over the first 7 months of 2025, approved property loans were ~RM 161.4 billion, about -1.5% relative to same period in previous year. Focus Malaysia – Business & Beyond
    5. Outlook
      • With lower OPR and more competitive base/reference rates, there is optimism that loan approvals (both volume and ratio) may improve in the remaining months of 2025. Government’s likely to include incentives in Budget 2026 to support first-time buyers, low-to-middle income groups. Focus Malaysia – Business & Beyond

    Steps Borrowers Can Take to Increase Chances of Loan Approval

    Given the current environment, borrowers can do several things to strengthen their applications and improve likelihood of approval. Here are practical steps, both before and during application.

    StepWhat to DoWhy It Helps
    1. Check & Clean Up Your Credit HistoryObtain your credit report (e.g. through CTOS, CCRIS, Experian) ahead of time. Ensure there are no outstanding defaults, ensure credit card/HP payments are on time.Banks check creditworthiness; a clean credit history reduces risk and may allow you to access better rates.
    2. Assess Debt Service Ratio (DSR) / Total CommitmentsKnow your monthly obligations: other loans, credit cards, etc. Make sure your net income minus all obligations leaves enough room for loan instalments. Try to reduce existing liabilities if possible.Banks often reject or charge higher margins if your debts relative to income are too high. Lower commitments improves affordability assessment.
    3. Have Stable & Adequate IncomeDemonstrate consistent employment or business income; have documentation (pay slips, tax returns, EPF contributions). If self-employed or commission-based, provide past 2-3 years’ income statements, audited if possible.Stability & predictability of income give banks confidence in your ability to repay.
    4. Make Reasonable Down Payment / EquityThe more you put down (lower loan-to-value ratio), the less risk for the bank. If you’re first-time buyer programs exist (often requiring only 10% payment), check eligibility, but be aware these may still have stricter conditions.Less loan amount relative to property value helps bank exposure and reduces margin required.
    5. Choose Appropriate Loan TenureLonger tenure reduces monthly instalments but increases total interest paid; very long tenure may raise risk from bank’s perspective (future rate changes, income changes). Balance payroll constraints with ability to service.A manageable monthly repayment improves approval chances; less risk of default.
    6. Prepare All Supporting Documents ProperlyHave ready: identity documents, employment letters, income proof, EPF statements, tax returns (if applicable), bank statements, any other asset documentation. Ensure documents are current.It speeds up processing and reduces grounds for rejection due to missing information.
    7. Shop Around & Compare OffersDifferent banks have different margins, promotions, and underwriting criteria. Get multiple quotes. Negotiate (sometimes banks reduce spread or offer incentives).May get better rate, lower fees, more favorable terms.
    8. Provide Clear Purpose & Property DetailsHave the Sale & Purchase Agreement (SPA), valuation report (if needed), title deed, property details, etc. If property is new or under construction, ensure developer’s track record and required approvals are in order.Banks assess property risk as well: location, title, developer credibility affect approval.
    9. Maintain Good Savings / ReservesHaving savings or avoid fully depleting your accounts helps; having reserves gives cushion in case of rate increases or unexpected expenses.Shows financial discipline and lowers risk from bank’s viewpoint.
    10. Understand Bank Fees & RequirementsBe aware of legal fees, valuation fees, stamp duties, insurance (MRTA/MRTT), and any bank-specific requirements (e.g. guarantor, joint-applicant). Make sure to budget for them.Unexpected costs can derail the process; being well-prepared ensures smoother approval.

    Challenges & What Borrowers Should Watch Out For

    • Even with OPR at 2.75% and SBR adjusted, banks’ margins/spreads can still be high depending on borrower risk. So effective rates may still be less favourable for some.
    • Approval ratios (~44-47%) show that over half of applications still get declined. That means it’s not just about rates; credit & affordability are being closely scrutinized. Focus Malaysia – Business & Beyond
    • Rising costs for legal fees, valuation, and sometimes hidden fees can make total cost of financing higher than expected.
    • Inflation, future rate rises, economic uncertainties mean banks may reserve right to tighten conditions suddenly.

    Conclusion

    Bank lending is currently becoming somewhat more favourable in Malaysia thanks to the OPR cut and adjusted reference rates. However, borrowers must still present strong, well-prepared loan applications. Cleaning up credit, reducing existing obligations, having stable income and proper documentation, and choosing appropriate loan terms are all crucial.

  • Inheritance Law and Joint Ownership Explained

    Inheritance Law and Joint Ownership Explained

    Written by Jocelline Chee from Rightwill | Edited by Miichael Yeoh

    When it comes to inheritance, things can get complicated—and emotional—especially when property is involved. In Malaysia, many people assume that putting property under joint names (like with a spouse or child) will make things smoother when someone passes away. Unfortunately, it’s not always that simple.

    If you’re planning to leave a property behind for your loved ones, it’s important to understand how inheritance laws work in Malaysia and the potential problems that can pop up with joint ownership.

    🏛️ How Inheritance Works in Malaysia

    Inheritance laws in Malaysia depend on your religion:

    • For Muslims, faraid (Islamic inheritance law) applies. It has fixed rules on how the estate is divided among family members.
    • For non-Muslims, the Distribution Act 1958 (amended in 1997) applies. This Act lays out who gets what—based on whether the deceased leaves behind a spouse, children, or parents.

    If someone dies without a will, the law decides how the assets are shared. That’s why it’s so important to have a valid will—it ensures your wishes are followed.

    Example under the Distribution Act:

    If the deceased leaves behind…Parent(s) getSpouse getsChildren get
    Parents, spouse & children1/41/41/2

    🏠 Joint Name Properties – Not As Simple As You Think

    Many Malaysians put properties under joint names thinking it will automatically go to the other person when they pass away. But that’s not always true.

    There are two main types of joint ownership in property law:

    1. Joint Tenancy
      • Comes with the right of survivorship.
      • If one owner dies, the property automatically goes to the surviving owner.
      • This is common among married couples.
    2. Tenancy in Common
      • Each person owns a specific share.
      • When one dies, their share becomes part of their estate and is distributed according to their will or the law.
      • This is more common in Malaysia, even when it’s between family members.

    Here’s the catch: Most joint name properties in Malaysia are actually treated as tenancy in common, unless stated otherwise. That means—even if your name is on the title—the other person’s share doesn’t automatically go to you. It becomes part of their estate and is shared out according to their will or inheritance laws.

    ⚠️ Common Pitfalls to Watch Out For

    1. Unclear Ownership Type
      If it’s not clearly stated whether it’s joint tenancy or tenancy in common, it can lead to confusion—and disputes.
    2. Unequal Contributions
      One person may have paid more, but the property is split 50-50 on paper. This often leads to disagreements among family members.
    3. Family Conflicts
      Things can get messy with children from previous marriages, siblings, or estranged family members. Without clear planning, emotions can take over.
    4. Outdated or No Will
      A will that hasn’t been updated—or worse, no will at all—can cause contradictions and legal battles during probate.

    ✅ What You Should Do

    To protect your assets and your loved ones from future disputes:

    • ✅ Talk to a professional estate planner or lawyer
    • ✅ Make sure your will is valid, updated, and matches your current ownership structure
    • ✅ Clearly state the type of joint ownership on your property documents
    • ✅ Keep your family informed, so there are no surprises later

    Joint ownership may seem like the easy way, but without proper planning, it can create unnecessary complications. A little preparation now can give your family peace of mind in the future.

  • Why Every Condo Owner Must Pay Maintenance Fees

    Why Every Condo Owner Must Pay Maintenance Fees

    By Ken Teo | Edited by Miichael Yeoh

    Let’s Start with This: You’re Not Just Buying a Unit — You’re Buying Into a Community

    When you own a condo, apartment, or any kind of strata property, you’re not just buying four walls. You’re also sharing ownership of everything outside your unit — the lifts, the corridors, the lobby, the pool, the roof, the water tank, the whole building.

    That’s why every owner needs to pay maintenance fees and contribute to the sinking fund. It’s not a donation. It’s not optional. It’s your duty as a co-owner.

    Let’s break it down in plain language…

    1. These Are Not “Extra Charges” — They’re Your Legal Responsibility

    Under Malaysia’s Strata Management Act 2013 (Act 757):

    • Section 25(1) (for Joint Management Body or JMB), and
    • Section 50(1) (for Management Corporation or MC),

    …it clearly says: every unit owner must pay maintenance charges and sinking fund contributions.

    These are not surprise charges or “admin fees.” They’re meant to cover your share of keeping the building clean, safe, and in working condition. It’s the same as chipping in for house bills when you live with housemates — it’s only fair.

    2. “If Others Don’t Pay, Why Should I?”

    This is a common complaint — and hey, we get it. Why should you be the good guy when others are skipping out?

    But think about this:

    • If no one pays, who’s going to fix the lift?
    • Who’s going to pay the cleaners or security guards?
    • How will the broken tiles or leaking roof ever get fixed?

    When people stop paying, the whole building suffers. And soon, even those who were paying start asking: “Why should I continue?” — and that’s when things spiral downhill.

    You don’t just live in your unit. You share ownership of the entire building. So if everyone pays their part, everyone enjoys a better home.

    3. What Happens If You Don’t Pay?

    The law doesn’t just suggest — it enforces. If you don’t pay, the JMB or MC has the right to take action under Section 60(3) of the Strata Management Act.

    Here’s what they can legally do:

    • Send you demand letters
    • File a claim with the Strata Tribunal or even in court
    • Charge up to 10% interest per year on overdue amounts
    • Block your access to facilities (like pool, gym, function room), with proper notice

    So it’s not just about being fair to others — not paying could cost you more later, both in fees and reputation. And your outstanding dues? They’ll follow your unit, even if you try to sell.

    4. Think of It as an Investment — Not a Burden

    No one enjoys paying bills, we know that. But your maintenance charges are not “just another bill.” They’re an investment in your own home.

    The money goes into:

    • Repairs and upkeep
    • Security and cleanliness
    • Ensuring your home is safe and comfortable
    • Keeping your property value high

    Ever seen a badly maintained condo? Low resale value, fewer buyers, and complaints all around. Compare that to a well-managed building — units there sell faster and at better prices.

    5. You Have the Right to Know Where the Money Goes

    Worried that your money is being misused? The good news is: you have rights.

    By law, the JMB or MC must:

    • Hold Annual General Meetings (AGM)
    • Present audited accounts and budgets
    • Use the sinking fund for long-term repairs like repainting, roofing, waterproofing, and lift upgrades

    As an owner, you can (and should):

    • Ask for financial reports
    • Question how funds are being spent
    • Vote during AGMs

    This is your money. And you deserve to know how it’s used.

    In Summary: Don’t Just Own a Unit — Own the Responsibility

    Paying your maintenance fees and sinking fund isn’t just about following the law. It’s about doing your part.

    You’re not a tenant anymore. You’re an owner. You have a stake in the building — and your actions affect everyone else too.

    So instead of thinking “Why me?” — let’s think “Why not us?”

    Let’s build communities, not just condominiums.
    Let’s protect our investments, not neglect them.
    Let’s be the kind of owners who care.

    Because a well-maintained building isn’t just a nicer place to live — it’s something you can be proud to call home.

  • Should You Buy Property in Malaysia Now? Insights 2025

    Should You Buy Property in Malaysia Now? Insights 2025

    Published: July 17, 2025
    By: Miichael Yeoh

    After a strong run in 2023 and 2024, Malaysia’s residential property market is finally taking a breather. While some see this as a red flag, the data paints a more balanced picture—one of resilience and recalibration, not recession.

    So, what exactly is happening in 2025? And should you be worried or ready to buy?

    Let’s break it down.

    📉 Q1 2025: Slower But Still Solid

    Malaysia’s residential property transactions dropped 6.2% in Q1 2025 compared to Q4 2024. That’s the first notable slowdown after nearly two years of consistent growth.

    But here’s the catch: activity levels are still higher than in 2022, which means we’re not seeing a crash—just a cooling-off.

    “The slowdown is expected. It’s the market stabilizing after a hot streak,” said a property analyst from KL.

    📈 Prices Are Still Moving Up

    The national average house price reached RM483,879 in Q1, reflecting a +1.4% year-on-year increase. Areas like Klang Valley, Penang Island, and Johor Bahru continue to dominate in both value and volume.

    Here’s a quick snapshot:

    AreaAvg. Price (Q1 2025)YoY Price Growth
    Klang ValleyRM 550,000+2.1%
    Penang IslandRM 620,000+1.8%
    Johor BahruRM 460,000+1.2%

    🏗️ Developers Stay Selective with New Launches

    With rising construction costs and cautious sentiment, developers are choosing quality over quantity. Most new launches are in well-connected, lifestyle-oriented locations—think smart townships, mixed developments, and green-certified homes.

    Hot-selling projects like Elmina Ridge 2 and Avalon Cybersouth saw near 90% take-up rates, showing buyers are still ready to act—when the product is right.

    🔍 What’s Supporting the Market?

    Despite the slowdown in transactions, several key factors are helping the market stay afloat:

    • Stable interest rates (BNM kept the OPR steady).
    • Low unemployment rate (around 3.3%).
    • Young home-buying population (millennials & Gen Z entering the market).
    • MM2H visa tweaks requiring foreigners to purchase property.

    These are long-term positives that signal stability in the residential segment.

    ⚠️ What Buyers & Investors Should Watch

    While the fundamentals are strong, here are a few caution signs to keep in mind:

    1. Affordability gaps in cities like KL and Penang may limit demand in certain price segments.
    2. Oversupply risks in high-rise areas still exist, especially where demand isn’t organic.
    3. Policy changes—any adjustments to RPGT, stamp duties, or loan rules could shift the playing field fast.

    💡 Final Thoughts

    If you’re a buyer or investor waiting for a market crash—you might be waiting for a while. What we’re seeing now is not the end of growth, but a healthier, more stable market emerging after years of turbulence.

    This could actually be the perfect window to enter—especially if you’re eyeing the right locations, products, and long-term value.

    🗣 “The best time to buy property is when others hesitate—because real opportunity hides in uncertainty.”

    Need help identifying the right property in 2025?
    Join the Property EDU Club — get expert guidance, real-life case studies, and insider access to property deals most investors never see.

    👉 Click here to learn more and join now

  • 📰 BNM Cuts OPR to 2.75%: What It Means for You and Your Loans

    📰 BNM Cuts OPR to 2.75%: What It Means for You and Your Loans

    Kuala Lumpur, 10 July 2025 — Bank Negara Malaysia (BNM) has announced a reduction in the Overnight Policy Rate (OPR) by 25 basis points, bringing it down from 3.00% to 2.75%. This move comes amid ongoing efforts to support economic growth and ease financial conditions for households and businesses.

    But what does this really mean for everyday Malaysians? And how does it affect your home loan or car loan?

    Let’s break it down.

    🔎 What Is the OPR?

    The OPR is the interest rate at which banks lend money to one another overnight. When BNM adjusts the OPR, it influences Base Lending Rate (BLR) ,Base Rate (BR) and Standardise Base Rate (SBR) used by banks to determine the interest on loans and savings.

    A lower OPR typically leads to:

    ✅ Lower loan interest rates
    ✅ Cheaper monthly repayments
    ✅ Easier access to credit

    🏠 Before & After: Sample Loan Calculation

    Let’s compare how the OPR cut affects a typical housing loan of RM500,000 over 30 years.

    Assume a floating interest rate of:

    • Before: 4.00% (based on 3.00% OPR)
    • After: 3.75% (after 2.75% OPR cut)

    🔹 Before OPR Cut (4.00%)

    • Loan amount: RM500,000
    • Tenure: 30 years
    • Interest rate: 4.00%
    • Monthly instalment: RM2,387.08
    • Total interest over 30 years: RM358,347

    🔻 After OPR Cut (3.75%)

    • Loan amount: RM500,000
    • Tenure: 30 years
    • Interest rate: 3.75%
    • Monthly instalment: RM2,316.84
    • Total interest over 30 years: RM333,462

    💡 You Save:

    • Monthly: RM70.24
    • Over 30 Years: RM24,885 in interest!

    📌 Summary:

    📉 Impact Beyond Housing Loans

    The OPR cut doesn’t just affect home loans. It also impacts:

    • Car Loans – Lower monthly repayments
    • Personal Loans – Cheaper borrowing
    • Business Loans – Reduced financing costs

    However, fixed-rate loans (such as some hire purchase loans) are generally not affected by OPR changes.

    🏦 Why Did BNM Cut the OPR?

    BNM’s Monetary Policy Committee cited the need to:

    • Support domestic economic activity
    • Manage downside risks from global uncertainties
    • Encourage spending and investment

    With inflation under control and growth momentum slowing, the rate cut is intended to provide a cushion and maintain financial stability.

    📊 Conclusion: A Relief for Borrowers

    If you’re repaying a floating-rate loan, this OPR cut could offer welcome breathing space in your monthly budget. For potential homebuyers, it’s a good time to recalculate affordability and consider locking in better financing packages.

    🔍 Tip: Contact your bank to check how the OPR cut affects your current loan rate. You may also explore refinancing options for better savings.

    From The Desk of

    Miichael Yeoh

  • SST Increase from 6% to 8%: How It Will Impact Malaysia’s Property Industry

    SST Increase from 6% to 8%: How It Will Impact Malaysia’s Property Industry

    Introduction

    Starting July 1, 2025, the Malaysian government officially raised the Sales and Services Tax (SST) from 6% to 8%, aiming to increase national revenue and reduce fiscal deficits. While basic necessities and certain essential services remain exempt, many sectors — including construction, legal, professional, and property-related services — are now affected. This tax adjustment is expected to have ripple effects across various industries, especially the property market, which is already facing affordability challenges.

    This article examines how the SST hike impacts the property industry, giving practical examples and offering insights into how buyers, developers, and investors might respond.

    1. Scope of SST Increase in the Property Sector

    The SST increase does not apply directly to the sale of residential properties, which are exempt from SST. However, indirect costs will go up due to increased service charges in the construction, legal, and property management sectors. These cost increments will eventually be transferred to end buyers and tenants, especially in commercial and high-rise residential developments.

    2. Areas Affected in Property Development

    Here’s a breakdown of how the 2% SST increase affects the property ecosystem:

    Service TypeBaseOld SST (6%)New SST (8%)
    Architect/Engineer FeesRM100,000RM106,000RM108,000
    Legal/Stamping ServicesRM20,000RM21,200RM21,600
    Renovation/Interior Fit-OutRM150,000RM159,000RM162,000
    Property Management ServicesRM50,000RM53,000RM54,000
    Advertising & MarketingRM30,000RM31,800RM32,400

    Example:
    A developer constructing a new serviced apartment project incurs around RM5 million in professional and management fees. Under the previous 6% SST, the tax was RM300,000. Now, it’s RM400,000 — a 33% increase in SST cost, which could result in higher launch prices to maintain developer margins.

    3. Impact on Property Developers

    • Higher Development Cost: Most developers will face a 5–8% increase in overall project costs when combined with inflation and compliance costs.
    • Price Adjustment Pressure: Developers may either absorb the cost (lowering margins) or pass it to consumers — likely raising launch prices, especially in urban areas.
    • Delay in New Launches: Some developers may delay project launches until market conditions stabilize.

    4. Impact on Homebuyers

    Although SST is not directly charged on residential property purchases, buyers may feel the pinch in several ways:

    • Higher Property Prices: Due to rising development and marketing costs.
    • Increased Renovation Expenses: Renovation and interior design are service-based industries and are now charged 8% SST.
    • Increased Maintenance Fees: Management services in condos or commercial buildings may increase, translating to higher monthly maintenance charges for owners and tenants.

    5. Impact on Real Estate Investors

    Investors will also be affected indirectly:

    • Lower Rental Yield: If property prices go up but rental rates remain stagnant, net returns will shrink.
    • Higher Operational Costs: Especially for those managing short-term rentals or Airbnb units (cleaning, advertising, renovation services all now taxed at 8%).
    • Buyer Caution: Investors may delay purchases or switch to lower-risk assets like REITs or landed residential properties outside city centers.

    6. Outlook and Strategies

    Despite the challenges, the SST increase may drive some positive changes:

    • Developers may adopt cost-efficiency technologies to maintain affordability.
    • Buyers may turn to subsale markets, which are less affected by SST-related costs.
    • Investors may focus on cash-flow-positive properties, especially those with low operating costs.

    Conclusion

    The SST increase from 6% to 8% might seem modest on paper, but its cascading effect across the property value chain is real. While residential property sales remain tax-exempt, associated services — from construction to maintenance — will become costlier. As developers adjust pricing and investors reassess risk, Malaysia’s property market may experience a short-term slowdown but could stabilize as the market adapts.

    Final Thought
    For both buyers and investors, 2024–2025 will require careful financial planning and a close eye on property pricing trends. Understanding the real costs behind the price tag is more important than ever.

    From The Desk of Miichael Yeoh

  • Exemption and Timeline Changes for E-Invoicing in Malaysia

    Exemption and Timeline Changes for E-Invoicing in Malaysia

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  • Bank Negara Reduces SRR from 2% to 1%: What Does It Mean and How Will It Affect Us?

    Bank Negara Reduces SRR from 2% to 1%: What Does It Mean and How Will It Affect Us?

    Bank Negara Malaysia (BNM) has recently announced a reduction in the Statutory Reserve Requirement (SRR) ratio from 2% to 1%. This move is part of a broader strategy to ensure sufficient liquidity in the financial system, supporting economic growth amidst current economic challenges. But what exactly does this mean, and how will it impact individuals and businesses? Let’s break it down.

    Understanding SRR

    The Statutory Reserve Requirement (SRR) is the percentage of a bank’s total deposits that must be kept as reserves with Bank Negara Malaysia. Essentially, it is a tool used by the central bank to control the money supply in the economy. When the SRR is lowered, banks are required to hold less money in reserve, thereby freeing up more funds that can be lent out to businesses and individuals.

    Why Did BNM Reduce the SRR?

    The reduction in the SRR by 1% is expected to release approximately RM19 billion into the banking system, effective from 17 May 2025. This significant injection of liquidity aims to provide banks with more funds for lending and to stimulate economic activities during this period of economic uncertainty.

    The reduction in the SRR from 2% to 1% is aimed at increasing liquidity in the banking system. By allowing banks to keep less money in reserve, more funds become available for lending purposes. This is particularly crucial during periods of economic uncertainty when businesses and individuals may require more financial support. It also helps to reduce the cost of funds for banks, potentially leading to lower interest rates.

    How Does This Impact Us?

    1. More Accessible Loans: With more liquidity in the banking system, banks are more likely to offer loans to businesses and individuals. This can facilitate personal loans, home loans, and business financing, making it easier for borrowers to access funds.
    2. Lower Interest Rates: When banks have more funds to lend, competition among banks may increase, potentially leading to a reduction in lending rates. This is beneficial for borrowers seeking to refinance existing loans or take new loans.
    3. Impact on Savings and Fixed Deposits: On the flip side, while borrowers may benefit from lower interest rates, depositors may see a decrease in interest rates on their savings accounts and fixed deposits as banks adjust their rates to manage the increased liquidity.
    4. Business Expansion and Investment: With more funds available for lending, businesses may find it easier to obtain financing for expansion, investments, or operational costs. This can stimulate economic activity and potentially lead to job creation.

    Potential Risks and Considerations

    While the reduction in SRR can stimulate lending and economic growth, it is essential to consider potential risks. Increased lending could lead to higher household debt if borrowers overextend themselves. Additionally, excessive liquidity could contribute to asset bubbles if funds are channeled into speculative investments.

    Conclusion

    The reduction in SRR from 2% to 1% by Bank Negara Malaysia is a strategic move to increase liquidity and stimulate economic activity. While this creates more lending opportunities and potentially lower interest rates, it is crucial for borrowers to exercise caution and assess their financial capacity before taking on additional debt. Similarly, depositors should monitor interest rate trends to make informed decisions regarding their savings and investments.

    From The Desk of

    Miichael Yeoh

  • Unlock Wealth with Smart Mortgage Strategies

    Unlock Wealth with Smart Mortgage Strategies

    Did you know that 70% of Malaysians exhaust their EPF savings within just five years of retirement?

    This is a shocking reality, but it doesn’t have to be yours. Without proper financial and mortgage planning, many people find themselves struggling with rising living costs, increasing debt, and an uncertain future.

    Many people believe that simply saving money in a bank or relying on EPF will be enough to sustain them after retirement. However, with inflation, economic uncertainties, and an increasing cost of living, savings alone are not enough. To secure your financial future, you need a smart strategy that builds wealth while you sleep—and that’s where financial and mortgage planning come in.

    If you want to retire rich, not broke, it’s time to take control of your financial future!

    The Importance of Financial & Mortgage Planning

    1️⃣ Your Salary Alone is Not Enough

    Many Malaysians rely solely on their salaries as their primary source of income. However, depending only on salary comes with risks:
    ❌ Job insecurity – What happens if you lose your job or your business slows down?
    ❌ Limited earning potential – Salary increments may not keep up with rising expenses.
    ❌ No long-term wealth creation – Once you stop working, your income stops too.

    By understanding financial planning and leveraging mortgages, you can turn your income into wealth-building assets like property investments that generate passive income.

    ✅ Smart financial planning ensures that your money works for you, not the other way around.

    2️⃣ The Rising Cost of Living & Inflation

    The price of food, petrol, housing, and healthcare has been rising every year. What seems affordable today might be out of reach in the next five or ten years.

    📌 Example: 12 years ago, a property in Kuala Lumpur cost RM300,000. Today, the same property is worth RM600,000. If you had bought it back then, you would have gained RM300,000 in capital appreciation.

    Now imagine if you had invested in properties over the years—how much wealth would you have built?

    This is why financial planning and leveraging mortgages for property investment is crucial. The sooner you start, the better you can protect yourself from inflation and rising costs.

    3️⃣ Using Mortgages as a Wealth-Building Tool

    Many people see mortgages as a burden. But in reality, a mortgage is one of the most powerful financial tools you can use to build wealth.

    Here’s how:
    ✅ Leverage: With a mortgage, you can own high-value properties with only a fraction of the cost upfront.
    ✅ Passive Income: By renting out your properties, you create a steady income stream that covers loan repayments and generates profit.
    ✅ Capital Appreciation: Over time, property values tend to increase, helping you build long-term wealth.

    4️⃣ Securing Your Retirement with Smart Investments

    Many retirees face financial struggles because they failed to plan early. Without a steady stream of passive income, they depend entirely on their savings, which can deplete quickly.

    A well-structured mortgage plan can help you own multiple properties that generate rental income. This means that by the time you retire, you’ll have a steady cash flow to support your lifestyle—without relying on savings alone!

    How to Start Planning Your Financial Future Today

    🔹 Understand how mortgages work – Learn how to maximize loan approvals and use mortgages to grow your wealth.
    🔹 Invest in the right properties – Avoid costly mistakes and find properties that give high returns.
    🔹 Create multiple income streams – Secure your future with passive income from real estate investments.

    Final Thought: The Best Time to Invest is NOW!

    Many people delay financial planning, thinking they have plenty of time. But the truth is, the longer you wait, the harder it becomes to build wealth.

    💡 The best time to invest was yesterday. The second-best time is NOW!

    🚀 Don’t wait until it’s too late. Take charge of your financial future today!

    From the Desk of

    Miichael Yeoh

  • Real Estate Summit 2025: A Resounding Success!

    Real Estate Summit 2025: A Resounding Success!

    After two days of insightful discussions, expert sharing, and valuable networking, the Real Estate Summit 2025 (RES2025) has officially concluded! This event brought together some of the most renowned experts in real estate, finance, and investment, providing participants with actionable insights into the property market, financial planning, and smart investment strategies for 2025.

    We were honored to welcome participants from Malaysia, the Philippines, Singapore, the USA, Germany, and many other countries. The diversity of attendees enriched discussions and created a vibrant learning environment.

    A Heartfelt Thank You to Our Participants & Speakers

    First and foremost, we extend our deepest gratitude to all participants for attending RES2025. Your enthusiasm and eagerness to learn made this event truly impactful.

    A special appreciation to our distinguished speakers, whose expertise and insights played a crucial role in the success of RES2025:

    🔹 Dato’ Sri Gavin Tee – A real estate expert who shared his forecast on the 2025 property market and upcoming investment opportunities.
    🔹 Richard Oon – A taxation and financial planning specialist who guided participants on tax-saving strategies and financial management for property investors.
    🔹 Dr. Daniele Gambero – A respected market analyst who discussed real estate trends, mortgage challenges, and investment potential in 2025.
    🔹 Dr. Elane Goh – A finance and investment strategist who shared her insights on wealth creation through property investments and financial planning.
    🔹 WK Ng – A seasoned property investor who transitioned from the corporate world to full-time investing, providing real-life success strategies.
    🔹 KW Wong – A PropTech innovator and Secretary-General of the Malaysia PropTech Association, who spoke about the digital transformation of the rental market.
    🔹 Charles Tan – A leading property market analyst who offered valuable perspectives on Malaysia’s evolving real estate landscape.
    🔹 Miichael Yeoh – A mortgage and financial expert, who emphasized the importance of planning before making any major investment decisions.

    Your dedication and willingness to share your knowledge made RES2025 a game-changing event for all attendees.

    Special thanks to our co-organiser POLA Malaysia and our media partners Property Hunter and kopiandproperty.

    Key Takeaways from RES2025

    Throughout the two-day summit, participants gained powerful insights into the property industry, with topics covering:

    ✔️ Where to Invest in 2025 – Discovering high-potential investment hotspots.
    ✔️ Real Estate Market Trends – Adapting to economic shifts and evolving regulations.
    ✔️ Financial Planning & Taxation – Understanding tax incentives, financial structures, and mortgage strategies.
    ✔️ Mortgage Market 2025 – The latest developments in home financing and lending policies.
    ✔️ PropTech Innovations – The rise of digital property platforms and the impact on buying, selling, and renting.
    ✔️ Investment Strategies – How to build a profitable real estate portfolio.

    As Miichael Yeoh emphasized in his session: “Plan first before making your next move.” Strategic financial and investment planning is essential to achieving long-term success in real estate.

    The Power of Networking & Knowledge Sharing

    Beyond expert talks, RES2025 provided an invaluable opportunity for participants to connect with industry leaders, experienced investors, and like-minded individuals. The event fostered an environment where attendees could exchange ideas, gain exclusive insights, and build meaningful professional relationships.

    Looking Forward: What’s Next?

    The success of RES2025 reaffirms GM Training Academy’s commitment to empowering individuals with property education and financial literacy. We believe that informed decisions lead to successful investments, and we are dedicated to helping investors, homeowners, and professionals navigate the ever-changing real estate market.

    🚀 Upcoming Initiatives:

    ✅ More masterclasses and training workshops
    ✅ Exclusive webinars featuring top industry experts
    ✅ Property investment study tours
    ✅ Advanced financial and mortgage planning courses

    Stay Connected & Keep Learning

    📢 Missed RES2025? No worries! Stay connected with us for upcoming programs that will continue to provide valuable industry insights and expert guidance.

    Once again, THANK YOU to all our participants and speakers for making RES2025 a grand success! We look forward to seeing you at our next event.

  • Effects of OPR Changes on Borrowing and Savings

    Effects of OPR Changes on Borrowing and Savings

    As of January 2025, Bank Negara Malaysia (BNM) has maintained the Overnight Policy Rate (OPR) at 3.00%, a position held since May 2023.

    Understanding the Overnight Policy Rate (OPR)

    The OPR is the benchmark interest rate at which banks lend to one another overnight. Set by BNM, it serves as a primary monetary policy tool to regulate liquidity, control inflation, and sustain economic growth.

    Implications of an OPR Increase

    When BNM raises the OPR, it signals an intent to tighten monetary policy. The effects of such an increase include:

    Higher Borrowing Costs: Banks typically respond to an OPR hike by raising their base rates, leading to increased interest rates on loans and mortgages. This results in higher monthly repayments for borrowers.

    Enhanced Savings Returns: Conversely, depositors may benefit from higher interest earnings on savings and fixed deposits, encouraging increased savings.

    Controlled Inflation: Elevated borrowing costs can dampen consumer spending and business investments, helping to moderate demand-pull inflation.

    Currency Appreciation: Higher interest rates can attract foreign investment, potentially strengthening the Malaysian ringgit.

    Impact on Property Market: Increased interest rates may lead to higher mortgage costs, potentially cooling property demand and affecting market dynamics.

    Recent Economic Context

    In the third quarter of 2024, Malaysia’s economic growth slowed to 5.3% from 5.9% in the previous quarter, influenced by reduced oil and gas production. Despite this, robust household spending and increased investments provided support.

    BNM’s Monetary Policy Stance

    BNM has maintained the OPR at 3.00% since May 2023, citing positive economic growth and steady inflation. Economists anticipate that the central bank will keep the OPR unchanged until at least 2026, aligning with current economic assessments.

    Interest Rate Impact Example

    Let’s look at an example of how interest rates affect property loans. Assume you’re borrowing RM500,000 for 30 years:

    • Current Interest Rate (4.5%): Monthly repayment is approximately RM2,533.43.
    • If OPR Increases by 25 Basis Points (4.75%): Monthly repayment rises to around RM2,608.82.
    • Impact: This increase of RM75.39 per month adds up to RM27,140.40 over the loan’s term.

    This illustrates why understanding interest rates and their potential changes is crucial for planning your finances.

    Conclusion

    An increase in Malaysia’s OPR has multifaceted effects, influencing borrowing costs, savings returns, inflation, currency value, and the property market. Understanding these dynamics is crucial for individuals and businesses to make informed financial decisions in response to monetary policy changes.

    From the Desk of

    Miichael Yeoh

  • Avoid Costly Mistakes: 8 Reasons to Learn Before Investing in Real Estate

    Avoid Costly Mistakes: 8 Reasons to Learn Before Investing in Real Estate

    Purchasing or investing in property is one of the most significant financial decisions a person can make. While the prospect of owning a piece of real estate can be exciting, it’s also fraught with risks and complexities. Here are eight compelling reasons why educating yourself before taking the plunge is crucial:

    1. Understanding the Market

    The property market is dynamic, influenced by factors such as economic conditions, interest rates, and government policies. Without proper knowledge, you might buy at the wrong time or in the wrong location, potentially leading to financial losses. Education helps you grasp market cycles and trends, enabling informed decisions.

    2. Avoiding Costly Mistakes

    From overpaying for a property to falling victim to scams, the risks of making costly mistakes are high for uninformed buyers. Learning about property valuation, legal processes, and common pitfalls can save you from financial heartache.

    3. Maximizing Investment Returns

    Investing in property isn’t just about buying a house or apartment; it’s about choosing assets that will appreciate in value or generate steady rental income. Understanding key metrics such as ROI (Return on Investment) and cash flow can help you identify profitable opportunities.

    4. Navigating Legal and Financial Complexities

    Property transactions involve a maze of legal and financial considerations. From understanding loan agreements to navigating tax implications and zoning laws, there’s a lot to learn. A lack of knowledge could lead to delays or even legal troubles.

    5. Building Confidence

    The more you know, the more confident you’ll feel about your decisions. Knowledge reduces fear and uncertainty, empowering you to negotiate effectively, choose wisely, and stick to your long-term goals.

    6. Identifying Red Flags

    Not all properties are created equal. Structural issues, poor location, and hidden costs can turn a dream investment into a nightmare. Learning to conduct due diligence and property inspections ensures you spot potential problems early.

    7. Accessing Better Financing Options

    Understanding how mortgages and loans work can save you thousands of dollars over the life of your investment. Learning about different financing options and how to improve your creditworthiness can lead to better interest rates and loan terms.

    8. Planning for the Future

    Property investment is a long-term commitment. Learning helps you align your investment choices with your financial goals, whether it’s building wealth, securing passive income, or preparing for retirement. Knowledge enables strategic planning that benefits you in the long run.

    Conclusion

    Investing time and effort into learning before buying or investing in property is an investment in itself. It equips you with the tools and insights needed to make smart, informed decisions that align with your financial aspirations. Remember, in the world of property, knowledge isn’t just power; it’s profit.