Interest rate going to hike and they say property market will be good!

Bank Negara Malaysia (BNM) yesterday hinted of a sooner than expected interest rate hike after keeping the country’s overnight policy rate (OPR) unchanged at 2% at its first monetary policy committee (MPC) meeting for the year. “Moving forward, monetary policy would remain accommodative to ensure that the economic recovery is well entrenched. At the same time, MPC also recognises the need to ensure that the stance of monetary policy is appropriate to prevent the build up of financial imbalances that could arise from interest rates being too low for a prolonged period of time,” the central bank said in a statement. BNM said that going forward, the economy is expected to expand further in 2010, with growth being supported by strengthening domestic demand, particularly private consumption and further improvements in external demand. (Financial Daily)

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The Malaysian property market, estimated to have registered transactions worth RM75.42bn last year, is expected to improve further in 2010 in line with the economic recovery. The transactions involved 337,990 properties as compared with the 340,240 valued at RM88.34bn in 2008, said the director general of Valuation and Property Services Department, Finance
Ministry, Datuk Abdullah Thalith Md Thani. "This year will be a good year for all. The property market for this year will improve as the number of transactions involving new housing and construction activities, increases," Abdullah Thalith said yesterday. He pointed out that Malaysia is expected to steer towards a recovery path this year, driven primarily by domestic demand, with commodity prices for rubber, crude oil and palm oil also improving. These, he said, will help to increase the confidence level among consumers and provide a positive impact for the property sector. Abdullah Thalith said the government would continue to implement appropriatmeasures to restore confidence and market sentiment. He said the liberalisation of Foreign Investment Committee (FIC) guidelines, would lift the competitiveness of Malaysia, as an investment destination. Furthermore, Abdullah Thalith said, acquiring properties in Malaysia would be even more attractive, as the FIC approval is no longer required. (BT)
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