The Malaysian Property Market Has Changed — Are Buyers Buying the Right Way?
For many years, property investing in Malaysia followed a familiar formula.
Buy a new launch, wait a few years, and hope the price goes up.
This strategy worked reasonably well during earlier property cycles when prices were rising quickly, financing was easier, and supply was more limited. Many investors entered the market believing that capital appreciation alone would justify the purchase.
But today, the Malaysian property market has entered a different phase.
The question buyers should now ask is no longer “Will the price go up?” The more important question is “Can this property sustain itself financially?”
The Shift From Speculation to Sustainability
Over the past decade, the mindset of property buyers has gradually evolved.
Today’s buyers are more cautious, more analytical, and more focused on cash flow and long-term holding power.
Instead of relying purely on future price appreciation, investors are increasingly asking questions such as:
What is the rental demand in this area?
Can the rental cover most of the loan instalment?
What happens if interest rates increase?
Who is the actual tenant profile for this property?
These questions reflect a more mature approach to property investing.
The reality is simple: not every property will appreciate significantly in the short term. When appreciation slows, the ability of the property to generate rental income becomes far more important.
Financing Strategy Now Matters More Than Ever
Another major shift in the market is the growing importance of financing structure.
Many buyers focus heavily on the purchase price but pay little attention to how the property is financed. Yet the financing strategy can determine whether an investment becomes manageable or financially stressful.
Buyers today need to consider:
Loan margin and interest rates
Monthly instalment affordability
Holding power during market slowdowns
Overall debt exposure
A well-structured loan can give investors time and flexibility, while poor financial planning can force them to sell prematurely.
Thinking about financing before buying is no longer optional — it is essential.
Rental Demand Is Becoming a Key Decision Factor
One of the biggest mistakes many investors made in the past was buying properties without considering who would actually rent the unit.
Today, buyers are beginning to look more closely at demand drivers such as:
Proximity to employment hubs
Accessibility and transportation infrastructure
Nearby universities or hospitals
Tourism demand and short-term rental potential
In markets like Penang, Kuala Lumpur, and Johor Bahru, rental demand is increasingly shaping investment decisions.
For example, areas with strong tourism activity or major infrastructure developments may offer better rental prospects compared to purely speculative locations.
The key question investors should ask is:
“Who is my tenant?”
If there is no clear answer, the investment may not perform as expected.
The Role of Infrastructure and Economic Drivers
Another important factor influencing property performance today is real economic activity.
Infrastructure projects, transportation connectivity, employment centres, and tourism growth can significantly impact both rental demand and long-term property value.
For instance, upcoming transportation developments and urban revitalisation projects in cities such as Georgetown could change demand patterns in the coming years.
However, infrastructure alone does not guarantee success. The surrounding ecosystem — population growth, business activity, and lifestyle demand — must also support the property market.
Buying Property Today Requires a Different Mindset
The Malaysian property market has not disappeared. But the way buyers approach property must evolve.
Successful investors today tend to follow a more balanced approach:
Evaluate rental yield and cash flow
Structure financing carefully
Understand real demand drivers
Focus on long-term sustainability
In other words, the focus has shifted from short-term speculation to long-term investment discipline.
A Final Thought
Property has always been a long-term asset class.
But in today’s market environment, buying property requires more than just optimism about future price growth.
It requires careful thinking, realistic financial planning, and a clear understanding of market demand.
The Malaysian property market has changed.
The real question is — have buyers changed with it?
Miichael Yeoh has more than 28 years of experience spanning banking, mortgage advisory, property investment, and developer consultancy. He is also the author of Think Like a Banker, Act Like a Player, Property Investment BLT, and Buying Property Like A Pro.
As someone who has spent nearly three decades in banking, mortgage advisory and property strategy, one question I get repeatedly from investors and homebuyers is:
“Why did my bank increase (or educe) my interest rate when I didn’t change anything?”
The answer almost always traces back to one key number — the Overnight Policy Rate (OPR).
Let’s break down how OPR is derived, who decides it, and how it directly affects your housing loan, business financing, and even fixed deposits.
What Is OPR?
Bank Negara Malaysia (BNM) uses the Overnight Policy Rate (OPR) as its main monetary policy tool.
The OPR is the interest rate at which banks lend money to one another overnight. It serves as the benchmark rate that influences all other interest rates in the country.
Think of it as the “master switch” of Malaysia’s financial system.
How Is OPR Derived?
OPR is not randomly adjusted. It is decided by BNM’s Monetary Policy Committee (MPC) based on several key economic indicators:
1️⃣ Inflation (Price Stability)
If inflation is rising too quickly, BNM may increase OPR to slow down spending and borrowing. If inflation is low or the economy is weak, BNM may reduce OPR to stimulate growth.
2️⃣ Economic Growth (GDP)
Strong economic growth may lead to higher OPR to prevent overheating. Weak GDP growth may lead to lower OPR to encourage borrowing and investment.
3️⃣ Employment & Consumer Spending
High unemployment? Lower OPR to boost activity. Strong consumer demand? Possibly tighten policy.
4️⃣ Global Economic Conditions
US Federal Reserve rates, global trade trends, currency strength, and geopolitical risks all influence Malaysia’s monetary decisions.
5️⃣ Financial System Stability
BNM ensures banks remain liquid and stable. OPR adjustments help manage systemic risk.
In simple terms:
OPR balances growth and inflation.
How OPR Affects Banks’ Interest Rates
When OPR changes, banks adjust their benchmark rates such as:
BR (Base Rate)
SBR (Standardised Base Rate)
Most housing loans today are priced as:
SBR + Spread (e.g., SBR + 1.5%)
When OPR increases:
SBR increases
Monthly instalments increase
Loan affordability reduces
When OPR decreases:
SBR decreases
Monthly instalments reduce
Borrowing becomes cheaper
Example: How It Impacts a Housing Loan
Let’s say:
Loan: RM500,000
Tenure: 35 years
Rate: SBR 3.00% + 1.50% = 4.50%
If OPR increases by 0.25%:
SBR may rise to 3.25%
New rate becomes 4.75%
Monthly instalment increases
Even a 0.25% increase can mean thousands of ringgit extra over the loan tenure.
This is why property investors must monitor OPR closely.
Impact on Different Groups
🏠 Homeowners
Higher OPR = higher instalments (if on floating rate).
🏢 Property Investors
Rental yield may be squeezed if instalments rise but rental cannot increase proportionally.
💼 Businesses
Cost of financing increases, affecting expansion decisions.
💰 Savers
Good news — Fixed deposit rates usually improve when OPR rises.
Why OPR Matters in Property Strategy
As a developer consultant and property strategist, I always advise clients:
Don’t only calculate today’s instalment. Stress-test at +1% or +2%.
Markets move in cycles. OPR will not stay low forever.
Smart investors:
Lock in good spreads during low-rate environments
Structure debt efficiently
Maintain cash flow buffers
Final Thoughts
OPR is not just a technical banking term.
It is the heartbeat of the financial system, influencing property prices, loan affordability, rental yields, and overall market sentiment.
Understanding how it works allows you to:
Make better borrowing decisions
Time property acquisitions strategically
Structure financing intelligently
If you are planning your next property move, always ask:
“What is the interest rate cycle telling me?”
Because in property investing, Timing and financing strategy often matter more than price.
LHDN has officially released the 2025 Income Tax Relief List, and this is one update every Malaysian taxpayer should pay attention to — especially employees, business owners, and property investors.
Why? Because tax reliefs are legal ways to reduce your tax payable, yet many Malaysians either under-claim or miss them entirely due to poor planning or last-minute filing.
Let’s break down what this means and how you can optimise your tax position before the year ends.
What Is the LHDN Tax Relief List?
The LHDN Tax Relief List outlines approved expenses that taxpayers can deduct from their chargeable income when filing their annual income tax return.
Simply put: 👉 The more legitimate reliefs you claim, the less tax you pay — legally.
This list is updated periodically to reflect:
Rising cost of living
Education and healthcare needs
Retirement and family responsibilities
Digital and lifestyle expenses
Key Tax Reliefs Malaysians Can Claim in 2025
Below are some of the most commonly used — yet often under-claimed — tax reliefs for YA 2025.
1. Individual & Dependent Relief
Individual relief: RM9,000
Spouse (no income): RM4,000
Child relief: up to RM8,000 per child (higher for education level)
👉 Ensure your spouse and children details are properly declared.
2. Lifestyle Expenses (Up to RM2,500)
This remains one of the most popular reliefs, covering:
Books, journals, magazines
Sports equipment
Computer, smartphone, tablet
Internet subscription
⚠ Keep receipts — LHDN may request proof.
3. Medical Expenses (Self, Spouse & Parents)
You can claim medical expenses for:
Serious diseases
Medical check-ups
Dental treatment
Special needs and disabilities
Claims can go up to RM8,000, depending on category.
This is especially relevant for professionals and business owners upgrading their skills.
6. Housing-Related Reliefs (If Applicable)
Depending on eligibility:
Housing loan interest relief (subject to conditions)
First-time homebuyer incentives (if applicable)
⚠ These are often misunderstood — get proper advice before claiming.
Common Mistakes Taxpayers Make
From my experience, many taxpayers:
Rush to file without reviewing reliefs
Lose receipts and documentation
Assume certain expenses are “not claimable”
Follow advice from unverified online sources
Claim incorrectly and risk penalties later
Remember: ❌ Under-claiming = paying more tax than necessary ❌ Wrong claiming = penalties and audit risk
What You Should Do Before Year End
Here’s a simple checklist:
✔ Review the 2025 relief list early ✔ Plan major expenses before 31 December ✔ Organise receipts digitally ✔ Review EPF, insurance, and PRS contributions ✔ Seek advice if you have rental or business income
Tax planning is not done in April — it’s done before December ends.
Final Thoughts from Miichael
Tax reliefs are not loopholes — they are government-approved incentives meant to ease financial burden.
Those who benefit most are not the highest earners — but those who plan early and claim correctly.
If you’re unsure what you can claim, especially as a property investor, freelancer, or business owner, get clarity before filing.
The Malaysian property market has been through a lot in the last few years — pandemic, inflation, rising construction costs, slow wage growth, and changing buyer behaviour. But as we step into 2025, one thing is clear:
Property is still moving… but the market is no longer the same. Buyers are more cautious, banks are more selective, and affordability remains a major issue.
Here’s my take on what’s really happening in the residential property and mortgage landscape, and what you should pay attention to — especially if you’re planning to buy, invest, or restructure your loans.
📈 Long-Term Price Trend: Property Still Moves Up
Whether the market is “good” or “bad”, one fact remains consistent:
Property prices in Malaysia have been rising steadily for the last 20+ years.
Urban areas like Klang Valley, Penang and Johor consistently show appreciation because of:
population growth
job concentration
infrastructure development
scarcity of prime land
But here’s the catch: House prices have risen much faster than income, making affordability the No.1 challenge for Malaysians today.
This explains why many young buyers are stuck deciding between renting longer… or compromising on location and size.
🏘️ What’s Happening in the Market Now?
1. Transaction volume is rising — but buyers are choosy
2024 recorded strong growth in overall property transactions, and 2025 is projected to see single-digit positive growth. People are buying — but not blindly.
Buyers today compare:
price per sq ft
rental potential
exit value
access to MRT / LRT
developer reputation
Gone are the days when anything “new launch” can sell out. Today, value matters more than hype.
💰 Mortgage & Financing Trend: Here’s the Real Story
The biggest shift recently is OPR dropping to 2.75%, making borrowing cheaper.
This directly means:
Lower monthly instalments
Higher loan eligibility
Better cashflow for investors
But with great news comes reality… Banks are approving loans more carefully than ever.
Your CCRIS, CTOS, commitments and even gig-income consistency matter. If your financial health is not clean, even a low OPR won’t help you.
For many Malaysians, the challenge isn’t interest rate — it’s getting the loan approved.
🧱 Supply vs Demand: The Affordable Gap
You’re hearing this everywhere:
“So many houses unsold!” —but at the same time— “I can’t find any home I can afford!”
Why? Because the overhang is mainly:
too expensive for the mass market
too big (1,000 sq ft and above)
wrong location
This mismatch will continue unless developers pivot more aggressively into the mid-market segment.
🧭 What Buyers & Investors Should Look At Now
✔️ If you’re a first-time buyer
This is a golden window. Low OPR + many choices + developers offering incentives = value for money.
Look for:
good location > big size
future MRT/LRT corridors
reputable developers
high rental demand areas
✔️ If you’re an investor
Capital gain will still happen — but don’t expect overnight appreciation. Focus on:
rental yield
undervalued areas
distress or motivated sellers
T.O.P. projects with ready tenants
The smart investors in 2025 are not speculating. They’re buying below market value, or in growth corridors, or early in new infrastructure zones.
✔️ If you own multiple properties with loans
This is the best time to:
refinance
consolidate debts
reset your cashflow
restructure your portfolio
A small adjustment in interest rate can save thousands per year.
🧩 Conclusion: The Market Isn’t Booming, But It’s Moving
Malaysia’s residential market today is stable, resilient, and buyer-driven. We’re not in a bubble. We’re not in a crash.
We’re in a value-driven market, where the winners are: ✔️ informed buyers ✔️ strategic investors ✔️ those who manage their loans wisely
If you understand the trends — and you know how to analyse value correctly — 2025-2026 can be a very profitable year for you.
Today, the property industry is noisier than ever. Everywhere you look — social media, webinars, billboards, YouTube ads — there’s a new “property guru” promising fast riches, zero-risk investments, and financial freedom in record time.
The problem? Most Malaysians are not confused because property is complicated. They’re confused because they are overloaded with marketing disguised as education.
And that’s where many fall into what I call The Property Guru Trap.
When Marketing Pretends to Be Education
Here’s the uncomfortable truth: not all property educators are educators. Many are simply excellent marketers.
Their formula is simple:
Showcase luxury lifestyle
Highlight “student success” without context
Push urgency: Buy now or miss out forever
Sell emotion, not strategy
You’re not being taught how to think. You’re being told what to buy.
Real education gives you clarity. Marketing creates pressure. One empowers. The other manipulates.
A Real Story I See Too Often
Just last year, a couple in their early 30s came to me after attending my property seminar. They had purchased three so-called “hot projects” based on hype incentives.
On paper, it looked attractive. In reality:
Both units were negative cashflow
Rental demand was weak
Their monthly commitments were choking their lifestyle
They weren’t irresponsible. They were simply following loud voices instead of clear frameworks.
And sadly, this is becoming the norm — not the exception.
The Real Cost of Following the Wrong Advice
I’ve met too many people who:
Bought units with negative cashflow
Overleveraged based on “hot tips”
Ended up with properties that can’t be rented
Are stuck servicing loans that don’t perform
Not because they were careless — but because they trusted confidently delivered advice without understanding the fundamentals.
A true educator helps you analyze. A salesperson helps you justify.
There is a difference.
How to Tell If You’re Learning or Being Sold To
✅ Real Education Will:
Teach you how to calculate ROI, yield, and risk
Help you understand bank approval logic
Show both pros AND cons of a deal
Focus on your personal financial situation
Encourage long-term thinking
🚩 Pure Marketing Will:
Avoid numbers and focus on hype
“Guaranteed rental must make sense”
Emphasize lifestyle more than strategy
Create fear of missing out
Push for immediate commitment
If the main goal is to close you fast — it’s not education. It’s sales.
Property Success Is Built on Structure, Not Excitement
Smart investors don’t rely on tips. They rely on process.
They understand:
Why banks approve or reject loans
How debt strategy impacts long-term wealth
The difference between speculation and investment
That timing alone doesn’t beat fundamentals
This is why structured learning matters. Not a weekend motivation high — but a system that builds independent decision-makers.
The Role of a Real Property Educator
A real educator doesn’t create dependency. They create capability.
You should walk away able to:
Analyse any project yourself
Question assumptions
Say NO to bad deals
Build a property plan based on your life goals, not someone else’s wins
Because the ultimate goal is not to follow a guru. It is to become your own strategist.
My Commitment to Property Education
For over a decade, my focus has never been about selling you a project. It has always been about equipping you with a framework:
A banker’s mindset to assess risk
An investor’s eye to spot opportunity
A player’s strategy to move smartly in the real world
Property is a powerful wealth tool — but only when approached with clarity, structure, and knowledge.
Not hype. Not shortcuts. Not empty promises.
Final Thought
Before you follow any advice, ask yourself:
“Am I being educated — or am I being persuaded?”
The moment you learn to differentiate the two, you stop being a follower… And start becoming a true property investor.
Property Matching: The Missing Link Most Gurus Ignore
One of the biggest differences between real education and marketing is this:
Marketing pushes projects. Education focuses on property matching.
Property matching means selecting a property based on who YOU are — not what the developer wants to sell.
It considers:
Your income structure
Your existing commitments
Your risk profile
Your investment timeline
Your cashflow capability
Your long-term objectives
Instead of asking: “Which project is hot now?”
The right question is: “Which property fits my current financial position and future strategy?”
This is exactly why many buyers end up stressed. They buy what is popular — not what is suitable.
A proper property matching process helps you:
Avoid overcommitting
Prevent loan rejection issues
Choose units with realistic rental demand
Align property type with your wealth plan
There is no such thing as a universally good property. Only a property that is good for the RIGHT person.
And this step is often skipped in high-pressure sales environments — because matching takes time, analysis, and honesty.
That’s not convenient for fast sales. But it is essential for sustainable investing.
Ready to Learn Property the Right Way?
If you’re serious about building wealth through property — not just buying based on emotion — then it’s time to approach it with strategy.
✅ Learn how banks really assess your loan ✅ Understand cashflow before committing ✅ Build a property roadmap aligned to your life goals
Join my upcoming property programme or consultation session and start making decisions with clarity, not pressure.
Because wealth is not built on motivation. It is built on informed decisions.
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
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%.
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
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
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
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.
Step
What to Do
Why It Helps
1. Check & Clean Up Your Credit History
Obtain 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 Commitments
Know 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 Income
Demonstrate 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 / Equity
The 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 Tenure
Longer 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 Properly
Have 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 Offers
Different 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 Details
Have 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.
Having 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 & Requirements
Be 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.
If you’ve been hearing about household debt in the news and wondering what it means for us Malaysians, here’s the lowdown—without the boring jargon.
Historical Context
2008 marked a low point in household debt relative to GDP, at 60.4%, showing moderate borrowing during that period. CEIC Data
In 2020, debt peaked during the pandemic, reaching a record 93.1% of GDP. CEIC Data
As of 2023, debt remained elevated at 84.2% of GDP, up from 80.9% in 2022. CEIC Data
These figures indicate that while debt declined from its 2020 high, it remains higher than pre-pandemic levels—an ongoing concern.
The Latest Numbers (2024–2025)
In June 2024, household debt stood at around RM1.57 trillion, accounting for 83.8% of GDP. Housing loans comprised 61%, followed by vehicle loans (13.5%) and personal financing (12.4%).
By March 2025, debt rose to RM1.65 trillion, or 84.3% of GDP.
Interestingly, household financial assets were reported to exceed debt by a factor of 2.1, suggesting Malaysians as a whole still have a substantial financial cushion. Additionally, prudent lending practices are maintained, with median debt service ratios (DSR) remaining at 34% for existing loans and 41% for newly approved loans (2024).
What This Means for Malaysians
Risks
Sustained High Debt Load With debt hovering around 84% of GDP, many households must allocate a significant portion of income toward repayments—possibly limiting spending on essentials.
Rising Youth Bankruptcy Between 2020 and early 2025, over 5,272 youths under 34 were declared bankrupt, with nearly 877 cases in 2024 alone. Personal loans accounted for 46.4% of these filings.
Potential for Over-Leveraging via BNPL Growing use of “Buy Now, Pay Later” (BNPL) services (e.g., Atome, Grab PayLater) raises concerns, as they operate outside traditional credit tracking like CCRIS and may enable unmonitored debt accumulation.
Lenient Lending to Young Graduates Experts warn that easy credit access for fresh graduates—especially via credit cards—could foster poor financial habits without proper income checks or financial literacy.
Positive Offsets
Healthy Asset Buffer Households’ financial assets outpacing their debts by over double implies a buffer that could cushion against economic shocks.
Responsible Lending Frameworks With the Responsible Financing guidelines and relatively moderate DSRs, household borrowing still aligns with regulatory safety standards.
Support Services Available Agencies like AKPK have helped over 64,000 borrowers settle loans, while nearly 270,000 others continue to receive support through debt management programs.
Balancing Act: Looking Forward
Economic Growth vs. Debt Sustainability While household debt has eased somewhat from its pandemic-era peak, it remains elevated, and spikes in personal or BNPL borrowing could strain households—especially lower-income groups.
Youth Financial Health The rising bankruptcy trend among the young underscores the necessity of stronger financial education and tighter lending criteria for vulnerable demographics.
Policy Opportunities Strengthening regulation around new lending platforms like BNPL, embedding financial literacy into early education, and enforcing responsible credit access remain vital steps to prevent systemic vulnerabilities.
In Summary
Household debt in Malaysia has declined from its 2020 highs but remains elevated, hovering around 84% of GDP in 2024–2025. While household financial assets provide a buffer and regulatory frameworks offer some protection, rising personal debt—especially among youths and via emerging platforms like BNPL—pose risks. Continued focus on financial education, responsible lending policies, and inclusive support systems will be key to ensuring long-term household resilience.
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) get
Spouse gets
Children get
Parents, spouse & children
1/4
1/4
1/2
🏠 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:
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.
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
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.
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.
Family Conflicts Things can get messy with children from previous marriages, siblings, or estranged family members. Without clear planning, emotions can take over.
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.
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.
Prime Minister Dato’ Seri Anwar Ibrahim delivered a heartfelt address on July 23, 2025, highlighting the nation’s recent economic achievements under the Ekonomi MADANI framework, and more importantly, unveiling new measures aimed at improving the lives of ordinary Malaysians.
🌍 Key Economic Achievements
Steady GDP Growth:
Q1 2025 GDP grew by 4.4%, with Q2 expected to reach 4.5%.
Malaysia ranked 23rd globally in the World Competitiveness Index (up 11 spots).
Historic Investments:
RM384 billion in approved investments in 2024 – the highest ever.
Stronger Ringgit:
The Ringgit has appreciated over 5% against the USD (now at RM4.23), ranking it among Asia’s top five performing currencies.
💼 Positive Impact on Malaysians
1. Improved Job Market & Wages
Unemployment dropped to 3.0% (lowest in over a decade).
RM1,700 minimum wage introduced in Feb 2025.
Over 250,000 jobs created between 2023–2024.
153,000 GLC/GLIC employees now earn a living wage of RM3,100/month.
2. Healthcare & Poverty Eradication
More than 4,000 new medical positions to be filled.
Nearly 150,000 hardcore poor households lifted out of poverty since 2023.
Launch of Sejahtera MADANI, a joint initiative with the corporate sector to continue this effort.
3. Direct Aid & Support for Cost of Living
STR & SARA cash assistance increased to RM13 billion.
Additional RM2.9 billion in welfare aid for senior citizens and children in poor families.
Paddy farmers and rubber tappers benefit from price floor hikes and higher subsidies.
🛍️ NEW Immediate Measures for the People
✅ 1. RM100 Cash via MyKad for All Adults
Effective Aug 31 – Dec 31, 2025, every Malaysian aged 18+ will receive RM100.
Usable at over 4,100 stores including Mydin, Lotus, Econsave, and 99Speedmart.
Estimated 22 million Malaysians to benefit.
Total allocation: RM2 billion (STR & SARA now RM15 billion combined).
Households with multiple adults will receive multiple payouts (e.g., 4 adults = RM400 total).
✅ 2. Extra Public Holiday
Monday, Sept 15, 2025, declared a public holiday to celebrate Malaysia Day and promote family bonding and domestic tourism.
✅ 3. Expansion of Jualan Rahmah MADANI
Allocation doubled from RM300M to RM600M.
More locations and product options across all 600 state constituencies.
✅ 4. No Toll Hike for 2025
10 expressways due for toll hikes will remain unchanged.
The government will absorb RM500M in compensation to operators.
✅ 5. Petrol Subsidy Revamp
RON95 petrol price to drop to RM1.99/litre.
Subsidy targeting to prevent abuse by foreigners and wealthy individuals.
Those who qualify (ordinary Malaysians) will continue to enjoy subsidies, while others will pay market rates.
Reflects similar approach to electricity subsidy restructuring, where 85% of users saw lower bills.
📚 What It Means for Malaysians
These initiatives signify a direct redistribution of national economic gains back to the people. The government’s approach combines responsible fiscal management, targeted assistance, and long-term poverty alleviation, while avoiding blanket subsidies that benefit the wealthy or foreigners.
The additional cash support, subsidized essentials, education aid, and income initiatives aim to tackle both immediate cost of living concerns and long-term structural challenges—especially for vulnerable groups.
🧭 Looking Ahead
Prime Minister Anwar reaffirmed that the focus remains on rakyat-centric policies, promising further efforts in the upcoming MADANI Budget 2026 to sustainably address the cost of living and economic equality.
🇲🇾 Bottom Line
The speech underscores a Malaysia that’s not only recovering economically but also intentionally channelling its growth into meaningful, targeted support for all citizens—especially the B40 and M40 groups. The result is a more inclusive, resilient, and fairer society moving forward.
Miichael Yeoh 