Property Hunter Magazine Issue 64 2015

BANKING AND INVESTMENT NEWS Property Outlook Remains Challenging Before GST Implementation Says, Maybank Ambank’s Group Managing Director Steps Down A MMB Holdings Bhd. (AmBank Group) recently announced that Ashok Ramamurthy would be stepping down after three years serving as a Group Managing Director. The 53 year old renowned banker is expected to rejoin his family back in Melbourne and resume his role as a Senior Executive at Australia and New Zealand Banking Group Ltd. in a planned transition. D ue to affordability issues and subdued buyer sentiment, the property sector outlook remains challenging and is likely to see a lull in demand post GST implementation that could last for six to nine months. According to Maybank Investment Bank Research (Maybank IB), developers were in the final push for sales before the implementation of the six per cent GST this April by bringing forward their property launches and are now offering very attractive marketing packages. “We think the pre-GST theme is overplayed especially when banks have significantly tightened their criteria for mortgage financing,” the research house said in a note. no change in the overnight policy rate over the next 12 months, the housing affordability index could decline by a further 2.4 percent. This would impact investment decisions for new purchases and could further dampen property sales. Maybank IB in a statement said property stocks under its coverage are currently trading at 0.340.64 times to their revalued net asset valuation estimates, which it believed were fairly reflected in their short-term subdued outlook. As reported in The Malaysian Insider, the Chairman of AmBank Group, Tan Sri Azman Hashim noted that the group has made significant progress under Ramamurthy’s leadership. He explained that Ramamurthy is the one who are responsible for repositioning the AmBank brand internally and externally as well as upgrading their technology infrastructure and strengthening strategic position. The Chairman in his statement also pointed out due to these efforts, the group has a bright future thus expressing his gratitude towards Ramamurthy’s contributions for it. charge of AmBank Group until a proper transition is made to the new Group Managing Director. Ramamurthy on the other hand said that it has been a great privilege to be AmBank Group’s Managing Director over the past three years. “I am honoured to lead a first class management team and AmBank Group’s 12,000 staffs who are dedicated to supporting our customers,” he was quoted saying. Describing Malaysia as a great place to live and work, the Australian stated that it has always been his intention to return to his wife and family in Melbourne as well as to resume his previous career. Ramamurthy joined AmBank Group from Australia and New Zealand Banking Group Ltd. in July 2007 as Chief Financial Officer and has been appointed to be the Group Managing Director since 2012. Nonetheless, Azman said that Ramamurthy will still remain in Housing affordability remained an issue as the index has been trending down since 2009, mainly driven by the hikes in the base lending rate to 6.85 percent from 5.60 percent from 2009 to 2011. It said assuming a six per cent increase in property prices and 120 www.PropertyHunter.com.my www.PropertyHunter.com.my 121

Property Hunter Magazine Issue 64 2015 | Seite 120