What Are The Factors That Will Affect The Property Values In Malaysia?

First of all, the location itself is the main factor that will affect the property values in Malaysia. If a property is close to school, shopping mall, bank, transportation facility, hospital, restaurant, church, temple, airport or any other places that can provide convenience to the people staying at that area, that particular property will definitely has a high property value that will attract more people than any property.
When it comes to real estate, the principle of supply and demand refers to the ability of people to pay for real estate coupled with the relative scarcity of real estate. The property values will be driven up by the condition of high demand coupled with a certain purchasing power and a short supply due to the scarcity of land. In contrast, the property values will experience a drop when people demand less of it while more supply enters the market.
Let's take for example Penang, being the second smallest state in Malaysia just after Perlis in terms of geographical coverage yet is the eighth most populous with 1.56 million of residents according to the population and housing census, Malaysia 2010 which is conducted for every ten years. Penang which has an average of 1, 490 persons per square kilometer is the second most densely populated states after Kuala Lumpur. This high level of population density puts competing pressure on land use which results in the rise of property prices as developers will put more expensive price tags on their projects due to the high-land costs. Besides, the lure as a tourist destination and a second home for foreign retirees is also one of the factors that results in a greater demand of Penang property. As a result, the short supply due to scarcity of land and the high demand from both foreign and local buyers is the main reason why Penang properties price are high as compared to say, Kelantan.
Apart from supply and demand, the Feng Shui and Vasthu Sastra which is known as the "science of construction" also have to do with property values in Malaysia. Regardless of you believe or not, many recent studies have shown that the property price will still be affected by Feng Shui. A property placed near a body of water can fetch you a handsome price compared to a property which is not. A property faced with a road junction or built at a dead-end road can have a lower price as compared to another property in the same area which is not. Many people trust Feng Shui because they consider that keeping things related to Feng Shui will bring steady growth, prosperity, good luck, good health, happiness and positive energy to the house, office or to the being. In this way, people will consider carefully the position and placements of the property which in turn makes a well placed or well designed property more attention-getting and favorable.
Next, inflation also has an impact on property values in Malaysia. At its most basic level, inflation is simply a rise in prices and a fall in the purchasing value of money. Let's take an example; again using Penang where there is latest news announced that "the selling price of properties in Penang will soon surge by 5%-10% following the recent move by Lafarge Malayan Cement to raise cement prices by about 6%", according to the Penang house developers. A hike in cement price simply means the price of concrete roof tiles, cement sand bricks and all the other cement-related products will rise. On average, 50% of building materials used in property development comprises cement and cement related products. Therefore, such inflation will leads to an increase in construction costs and the buyers are the one who ultimately bears the cost. Besides, the inflation also has been caused by the transportation and labor costs that are increased nationwide. The rise in cost of labor is particularly due to the labor shortage as many Indonesian have gone back to Indonesia and are facing with stricter laws and standards when they wish to come back to Malaysia.
The government's introduction and revision of its property related policies also played a key role in determining the value of properties. The exemption revision of real property gains tax (RPGT) has increased the interest of a small group of people on the property market. Additionally, Malaysian government is pushing out a series of incentives to make its property market more attractive to foreign investors who will eventually bring in external cash flows. Both of these actions have enhanced the property values. In addition, the build then sell (BTS) concept has been revised. It has increased the confidence of buyers and created developers who are more conservative leading to higher value of property.
Furthermore, the existences of property agents and Internet such as auctions websites and real estate agent websites help ease the process of selling the properties nowadays. It has made the property investment more easy, convenient and favorable. In this way, there is an increase of interest in property investment thus further lifting the value of properties.
Moreover, the mortgage rate that also plays an important role in influencing the property value should never be forgotten. A mortgage rate is commonly known as Base Lending Rate in Malaysia (BLR). BLR is a term refers to the minimum interest rate used by banks. It is defined by the central bank of Malaysia. BLR will get lower when the global money market down turn and get higher when the money market is on uptrend. Whenever the housing demand is weak, lower mortgage rates will help to improve the access to property financing while reducing the monthly payment for housing loan. So, these circumstances will aid in strengthen the housing demand and then the property value will increase over time.
Last but not least, the vacancy levels will also have a significant contribution towards the property values in Malaysia. For illustration, when the unemployment rate is high, the buyers and investors will not have enough capital to invest in a property creating a situation of strong rental sales. In contrast, the low unemployment rate will motivates the buyers and investors to involve themselves in property investment activity eventually leading to a higher property values.
Above are some of the factors that will affect the property values in Malaysia. However, there are still some other relevant and important factors out there that are worth seeing.

Riding Your Bike: How to Stay Safe on the Road

Summer's warm, dry weather brings out bicyclists in droves. Not only is it good exercise, fun and eco-friendly, but with the price of gas, it is very economical, too. However, without good equipment, proper attire and a high level of alertness, it can be dangerous, especially when sharing the road with automobiles.

According to the National Highway Traffic Safety Administration (NHTSA), there were 630 deaths and 51,000 reported injuries from bicycle accidents in the United States in 2009. 

Bicycle Accident Statistics

• Collisions with vehicles account for a third of all bicycle accidents resulting in injuries and deaths.
• A bicyclist is killed every six hours in the United States.
• About one million children are injured in bicycle accidents annually.
• 75% of serious injuries and fatalities from bicycle accidents are due to head injuries.

Cars and bicycles have a tenuous relationship on the road. Drivers are focused on looking out for other cars and trucks on the road, and don't always see bicycles. In addition, bicyclists are slower than cars, and can be overtaken before the driver realizes they are there. This can result in accidents -- and the bicyclist almost always comes out the loser in this scenario.

While bicyclists enjoy the same privileges as drivers on non-freeway roadways, they also have the same responsibilities. Stopping at red lights, stop signs, and yielding; signaling all turns; not exceeding the posted speed limit; using the right side of the street and not the sidewalk; and paying attention to the traffic all around them.

In Washington state, bicyclists can ride side-by-side, but only two abreast.  If the road has a wide shoulder, use it, but if the curb lane has no shoulder it's best to stay to the left in the far right lane so drivers can more easily see you. Ride in the same direction as traffic and wear proper clothing (bright, flashy and reflective). If riding at night, have a white headlight and a red taillight that are functioning properly. These all help drivers see -- and avoid -- you.

Even though Washington state doesn't require bicyclists to wear approved helmets, the city of Seattle and King County require it. For a complete list of cities that require bike helmets to be worn, go to: http://www.wsdot.wa.gov/bike/helmets.htm.

What to Do After a Bike/Car Crash

 If you are unfortunate enough to be hit by a car, take these steps:

• Remain calm and non-confrontational.
• Call the police and insist that the officer files a police report. In the event that an officer does not respond, go to a police station and file an accident report within 72 hours of the incident.
• Get the driver’s insurance information, address, phone number and license plate number.
• Get the name, phone number and address of every witness.
• Have your bike thoroughly inspected by a reputable bike shop.
• If you have a cell phone camera, take photographs of the accident scene, your injuries, your bike and all other involved vehicles.

Sources: WSDOT.wa.gov/bike/laws.htm; National Highway Traffic Safety Administration

Malaysia Newspapers - The Evolution Continues

There are many local newspaper in Malaysia. Some are new and some have been around for at least 50 years. And like any newspaper publishers around the world, most of them has a beginning in politics. Malaysia is also one of them. The New Strait Times for example has been instrumental in instilling nationalism among the people during the pre-independent days. In other words, it was used as a propaganda tool to reach to the mass.
Today, from the politically-inclined newspapers, Malaysia has spawned many other newspapers of all genres such as Finance, Business News, Entertainment and many others. To cater for the multi-racial Malaysians, one can find newspapers in most of the major languages spoken in Malaysia such as Malay or Bahasa Melayu, English, Chinese, Tamil, Kadazan, Iban and many other local dialects especially in East Malaysia. Such variety makes Malaysia one of the most unique countries in the World.
When it comes to politics, newspaper in Malaysia can  be categorised into three categories: pro-government, pro-opposition or neutral. Most of the mainstream newspapers such as The Star or New Straits Times have long been perceived as pro-government but being a democratic country, Malaysia has never stopped pro-opposition newspapers to be in circulation though from time to time there are cases where publishers fail to renew their publication permit for being too 'vocal' in  expressing their opinion against the government.
Pro-opposition newspapers are normally backed by its proxy political party in terms of resources and funding. Even though there is no such thing as absolute freedom of speech in Malaysia yet, the existence of such newspaper proves otherwise. And one can be sure that such evolution will continue in Malaysia and hopefully for the better.

Is the Economy Resisting Malaysia or is Malaysia Resisting the Economy?

Speak, blog, testify, judge and publish all you want about corporate finance and setting up competitive sectors to improve an economy. Let an economy be resilient, low-income or highly dependable - If financiers or politicians can walk their logic talk in a timely fashion, padded with some ingenious combination of ideas and concepts, we wouldn't be in so much trouble. Malaysia probably wouldn't be in this state of economy.
It could be better; it could be worse. That all depends on how you look at things, how you balance a huge variety of factors involved and use them for forecasting. In many poorer countries, some would say "Leaders should look into dominating small manufacturing, production (farming) or private/public services in their region,"; while some would argue, "Leaders should use available resources to develop their stock markets, get into the international finance arena and start playing the game."
Have we not learned our lesson? Take Seoul and Tokyo for example. Both have placed a lot of emphasis on developing "LOCAL" banking focus - Simple administration and banking systems should provide financial services to the local market - forthrightly supporting those greatly in demand and with great potential. Provide local 'dominance' to small to big enterprises. Let banking and financial institutions have financial sustainability, and be less dependent towards international banks and equity markets.
These are the economies that sustain hits and survived whatever waves that come along their way. Like China, local dominance towards natural resources and potential paved way for its citizens to spruce up the economy; to circulate funds in a fashion where international dependence is minimal. For low-income countries, they should focus on what internal resources they can leverage and spruce things up locally before joining dances of gigantic banks - In which most of the time serve relatively wealthy communities, groups or individuals only.
If Central Asia, for example, were to juggle stock markets in the international arena, knowing that they're only at the early stages of development, what ball would they bring to the game?

KL Management Services has been restructured into a Chartered Accountant company in Malaysia, now servicing corporate clients from small to large for corporations. KLM is one of three professional accounting firms in Malaysia licensed, experienced and capable to provide financial advisory services

How To Finance An Apartment Purchase In Malaysia

If there was a contest to determine the most popular business in Malaysia, mortgage lending could certainly compete. Just about any institution with cash i.e. banks, or access to someone else's cash i.e. insurance companies, wants to be in the residential lending game. It is a fact one can easily confirm with a quick glance at the local newspapers. You will see pages after pages of mortgage lending offers.
There are many lenders in the market, and the first time apartment buyer should talk to as many people as possible. The reason for this is to find the best mortgage lending offers available. In additional to the newspaper, good mortgage lending offers can also be found in the yellow pages, real estate directory and by asking real estate lawyers, real estate brokers and agents, and people who have bought apartments recently.
For many years the best known mortgage lenders were Malaysian local banks such as Maybank, Public Bank and Hong Leong Bank. In the recent years, the insurance companies have jumped on the mortgage lending business bandwagon. Even tough the insurance companies are not primarily in the mortgage business, they have managed to packaged mortgage plan bundled with their insurance product. In some cases, first time apartment buyers can obtain access to insurance funds only through mortgage bankers and mortgage brokers.
Mortgage bankers are individual and organizations who loan their own funds and the funds of others to real estate purchasers. Once a mortgage is made, the mortgage banker typically sells the loan to an investor. A mortgage broker, unlike a mortgage banker, does not have capital to lend but instead loans money that belongs to others. He makes his money on fees, charges and points. In addition, a mortgage broker may also service loans.
Just like in any country, to finance an apartment purchase in Malaysia can be a daunting task. A typical mortgage payment term for the average Malaysian is from 15 to 30 years. The best thing for a new apartment purchaser to do is to get advice from the right people before signing on the dotted line of a mortgage agreement.

Scholarships for Students in Malaysia

You can stop eating corn and bread every week now for Shell is offering scholarships again in order to help students who are studying in universities locally and abroad. Shell Scholarship 2010 is offering several scholarships for students who are pursuing their full-time undergraduate studies in these fields; Petroleum Engineering, Chemical Engineering, Electrical Engineering, Mechanical Engineering, Geosciences, Chemistry, Physics, Business Administration or Economics, Finance and Accounting, Information Technology and Masters of Science in Geosciences.
If you have completed your SPM/O-Level or equivalent-STPM/A-Level/Foundation Year/Diploma or is currently in your final semester of Matriculation or private or public University and you have strong academic record (realistic expectation of CGPA or its equivalent), you are eligible to apply for the scholarship. Other requirements are:
- Good command of English
- Demonstration of leadership skills through active participation in extra-curricular activities such as clubs, societies, sports and et cetera.
- For Masters of Sciences in Geosciences, candidate must have good Honours Degree or equivalent in relevant field from recognized university.
Malaysian applicants must at least possess a credit in Bahasa Melayu at SPM level or its equivalent qualification whereas foreign students and local student are required to be proficient in both written and spoken English. Applicants must be able to fulfill these requirements:
- Minimum TOEFL score of 550 or
- Minimum IELTS score of 6.0 or
- Minimum ELTS score of Band 6 or
- Minimum MUET score of Band 4.
Native English speakers and holder of degree with English as medium of instruction may be exempted from the above requirement.
Application form is to be submitted online. You may base your application on the latest semester results (Matriculation) or trial examination results (SPM and STPM). Also, please note that only shortlisted candidates will be notified to undergo an interview. Also, Shell Malaysia will reject any incomplete application form and late submission.
A Shell scholar, Karen Wong shares her experiences working with Shell as a Management Accountant. "To me, Shell is a not only a company that generates robust profitability but also cares for its people. Needless to say I am overjoyed and grateful for the opportunity to be a Shell Scholar and eventually an employee of this MNC that is fully committed to sustainable development."
So, act fast and submit your application before the 31th of Jul 2011.
With Shell Scholarship, money will no longer be the barrier to your goals, ambitions and success.

Finding a Virtual or a Serviced Office: Malaysia As a Top Choice for an Office Address in Asia

Company owners, and also other executives, will always have diverse business office needs. Quite a few may choose to have a fully serviced office, which has equipment and amenities. Still, other folks may require a modest-sized office space with a desk and a chair. Business owners have a common need, nevertheless, and that is to have a renowned office address right in the core Malaysian business districts.
A company or individual's office address can often be indication of the state of a business. A famous address may mean that this company is well-established in their market. A small office along at the borders of the city may signify a business is still a start-up company.
Usually, start-up businesses have a problem with their finances and investing in a great business office in the central business district may be impractical or suicidal. Due to this concern, many company owners believe that it is best to get a virtual office or a serviced office.
Malaysia is one of the best countries in Southeast Asia and in the whole continent. Regarded as an alpha world city, numerous banking institutions and also other sectors have set up offices in the nation's capital, Kuala Lumpur. Because this city is Malaysia's key business district, the cost of an office here is costly, too.
That's the reason it is more sensible to get a serviced office and a virtual office. Malaysia properties are some of the very best in Asia because of tight building security regulations and the beauty of the designs. On the other hand, small- and medium-scale businesses are discovering it tough to build a business office here because of the price. Controlling the cost is one of many main considerations in getting a virtual or serviced office. Malaysia, without a doubt, is among the cities that could provide these facilities.
Nevertheless, what exactly are serviced offices and virtual offices? Just how can they assist, small-scale organizations and foreign-owned ones? Serviced offices offer an individual or a company with a fully serviced office or executive suite with flexible and easy leasing terms and conditions. In a serviced office, Malaysia company owners can share equipment, communication, and facilities to many other tenants.
Another highlight is no requirement for the business to employ a front desk staff because this person is already included in the contract. For most businesses, that is a very cost-effective answer, as they no longer need to buy the essential office equipment and furniture.
In the mean time, a virtual office allows someone or a firm to show professionalism using a famous office address, nevertheless without its expensive cost. The reason being small business owners only use the address, but not the physical office itself.
Countless small-scale businesses worldwide have benefited from a virtual office. Malaysia based foreign business owners know that they can benefit from one as well. Virtual office providers in Malaysia will provide a receptionist to respond to the calls for their customers. Important communication services are also included, and also access to other facilities.
Countless small-scale and foreign-owned businesses benefit from having a serviced office. Malaysia based businessmen and firms also save a lot of if they get a virtual office. Malaysia is one of the best countries in Southeast Asia to work in because of its surging economy. However, there is no need to pay for extra for an exclusive and fully serviced office when you can get these useful office solutions.