/// Banking and Investment News
Malaysia Top Retirement Destinations
BNM to Raise Overnight
Policy Rate by 25 Bps?
Malaysia Investor Clubs Blamed for Sky-Rocketing Property Prices
cent for the subsequent
two years.
Foreigners have also
been barred from
buying properties worth
less than RM1 million,
under the Guidelines
on the Acquisition of
Properties with effect
from March 1 this year.
There is a current trend
where more Malaysians
are migrating overseas and
retiring abroad while an influx
of foreigners are flocking to
here to spend the rest of
their golden years. According
to InternationalLiving.com’s
Global Retirement Index 2014,
Malaysia ranks as the third
best country to retire, after
Panama and Ecuador.
What makes Malaysia a good
place to retire? There are any
advantages including the yearround warm sunny climate,
affordable cost of living,
accessible health care and
good infrastructure.
One of the main concerns
of retirees is living in a
place that has good health
care facilities. According to
InternationalLiving.com’s
Global Retirement Index,
Penang and Kuala Lumpur
have the best medical centers
in the country. Affordable
insurance protection is also
key especially medical and
hospitalization benefits.
Another attractive factor
for retiree sis the good and
comfortable quality of living
in Malaysia. The country
has a mix of facilities and
environment that can cater
to both a lavish lifestyle and
a simply moderate one. The
natural landscape also allows
you to have the best of bots
worlds which is calm and
relaxing yet adventurous at the
same time.
Connectivity to other countries
66
and regions is also important
especially when needing to
keep in touch with family
abroad. Besides that, the
availability of high-speed
Internet broadband enables
retirees to also stay connected
with family and friends around
the globe.
While finding the right
environment may shape
your dream retirement,
being financially prepared
for retirement may help you
turn that into a reality. Sound
financial planning is the basis
to fund your standard of living
during your golden years,
wherever you may want to
spend them. You may want to
consider retirement plans that
provide annual guaranteed
cash payouts such as HSBC’s
UniversalTreasure to boost
your retirement income and
take you closer towards your
dream retirement. Have a
chat with your Relationship
Manager if you need more
assistance in planning your
retirement or visit any of our
branches for more ideas and
insight.
Top Three Cities to Retire In
Malaysia:
Penang
The ‘Pearl of the Orient’
remains is a favourite with
retirees and Yahoo! Travel
listed it as one of the top 10
must-visit islands. Besides
its beautiful beaches, iconic
Georgetown is protected as
a UNESCO World Heritage
site and is ranked as
www.PropertyHunter.com.my
one of the world’s 21 best
cities for retirement by
LiveandInvestOverseas.com
in their First Annual Retire
Overseas Index.
Penang is famous for its
multicultural society, wide
variety cuisine, golden sandy
beaches and some of the best
health care facilities in the
country.
Kuching
Located in East Malaysia,
this city was named by
LiveandInvestOverseas.
com as the most interesting
retirement spot as Kuching
offers retirees a laid
back lifestyle that can be
adventurous and high
standard as well. Kuching is
also one of the cleanest city in
Malaysia recognised by United
Nation, the Alliance for Healthy
Cities, and the World Health
Organization.
Ipoh
This gem of a city is famous
for its natural limestone hills
and delicious food. And it is
conveniently located just over
two hours by road from Kuala
Lumpur and Penang. It offers
a quiet hideaway from the
hustle and bustle of the city,
but it’s still close enough for
you to experience the best
of both worlds. Furthermore,
property prices are still
affordable, compared to Kuala
Lumpur. It also has relatively
good public amenities and
infrastructure, and shopping
and entertainment outlets.
While Bank Negara Malaysia (BNM) maintained it
overnight policy rate (OPR) at three percent, it latest
monetary policy statement hinted at a possible hike
in the coming months.
“Going forward, the degree of monetary
accommodation may need to be adjusted to
ensure that the risks arising from the accumulation
of these imbalances would not undermine the
growth prospects of the Malaysian economy,” said
the central bank yesterday.
According to Alliance Investment Bank Chief
Economist Manokaran Mottain, the last paragraph
in the statement meant the OPR could be raised in
the next few months.
“After reading the statement carefully, we noticed
that the central bank’s tone towards the OPR has
changed. We believe the adjustment may happen
as early as July,” with interest rate rising by 25 basis
points (bps), he said.
Notably, a hike in this benchmark rate would mean
higher interest rates for property loans.
“Following the issuance of the statement, we are
more confident that there will be an increase in
interest rate but it will not be at a quantum that
could disrupt the country’s economic growth,”
noted Mottain.
Nevertheless, the OPR hike is viewed as a stabilising
adjustment, he added.
Meanwhile, the government’s macro and micro
prudential measures have curbed the dizzying
growth of the country’s household debt, said BNM.
However, the prevailing monetary and financial
conditions could result to a larger build-up of
economic and financial imbalances.
Global economic growth softened in Q1 2014
as several important countries were impacted
by weather-related and policy-induced factors.
“Looking ahead, the global economy is expected to
remain on a path of gradual recovery,