Home Capital Investing strategies

No more PPP (Piratisation of Public funds for Private interests), please

Tong Kooi Ong
Tong Kooi Ong10/1/2018 07:30 AM GMT+08  • 5 min read
No more PPP (Piratisation of Public funds  for Private interests), please
SINGAPORE (Oct 1): Last week, we discussed some of the major issues with regard to the current state of housing in Malaysia. To briefly recap, the rising number of unsold houses across the nation indicates that there is ample supply in the market. However
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (Oct 1): Last week, we discussed some of the major issues with regard to the current state of housing in Malaysia. To briefly recap, the rising number of unsold houses across the nation indicates that there is ample supply in the market. However, many are still unable to own a home. This is due primarily to the gap between house prices and income levels.

We showed an estimated cost breakdown for an average-priced home. It underscores the limits to which costs can be lowered — for quality housing of a decent size, at a reasonable location with connectivity and facilities that will create equity for owners in the long run. The poor performance of the Perumahan Rakyat 1Malaysia (PR1MA) housing scheme would testify to this.

We also highlighted the risks of default and foreclosure if banks were forced to loosen lending requirements, which could have serious ramifications on the banking sector and the economy as a whole. Keep in mind that the average Malaysian household is already heavily indebted and has little ability to take on more loans.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now