World Bank sees Malaysia’s GDP growth moderating to 4% in 2023, State Cabinet approves Sabah-Malaysia My Second Home policies and more

31st January – 7th February

After an unexpected rebound of 7.8% in 2022, Malaysia’s economy is forecasted to grow at a moderate pace this year, at 4.0%.

Meanwhile, the state government of Sabah has approved in principle the policies regulating the Sabah-Malaysia My Second Home (SBH-MM2H) programme.

1) World Bank sees Malaysia’s GDP growth moderating to 4% in 2023

After an unexpected rebound of 7.8% in 2022, the World Bank forecasts that Malaysia’s economic growth for this year will be moderate, at 4.0%.

It attributed the slower growth partly to a troubled global economy, reported Malay Mail.

“As a highly open economy, Malaysia will continue to face substantial risks emanating from the external environment,” said World Bank.

“Shocks to global growth — including higher-than-expected inflation, tighter financial conditions, deeper slowdown in major economies, a prolonged war in Ukraine, and continued lockdowns in China — could cause a sharper-than-expected slowdown in global growth.”

It explained that a 1% decline in the growth of the G7 countries and China could potentially “lower Malaysia’s growth by one and 0.7 percentage point, respectively”.

Domestic spending is anticipated to be the main driving force behind Malaysia’s economic expansion this year.

The World Bank projects that private consumption will grow at a more moderate but still healthy rate of 6.7% in 2023, thanks to the government’s ongoing household income support and continuing progress in the labour market.

 2) State Cabinet approves Sabah-Malaysia My Second Home policies

The state government of Sabah has approved in principle the policies regulating the Sabah-Malaysia My Second Home (SBH-MM2H) programme.

“The State Cabinet has approved the policies which govern the prerequisites for participation in the programme such as age requirement, medical certification and a fixed deposit account in Sabah,” said Datuk Christina Liew, Minister of Tourism, Culture and Environment as quoted by Borneo Post.

Notably, the programme’s terms and conditions include a minimum stay of 30 days per year, eligibility to acquire property worth at least RM600,000 and above, medical check-up certification, certification of good conduct from the applicant’s country of origin, opening of a bank account at any local bank in Sabah with an RM200,000 fixed deposit.

The minister expects the SBH-MM2H programme to attract participants who fulfil the criteria and create a positive impact on Sabah’s economy, particularly in real property development as well as the tourism industry.

 3) Kg Sg Baru residents want redevelopment project expedited

More than 260 Kampung Sungai Baru residents have called on Prime Minister Datuk Seri Anwar Ibrahim to intervene and expedite the redevelopment plan for the area.

The group had submitted a memorandum to Anwar’s political secretary Azman Abidin, underscoring that the issue has dragged on for over six years, with no solution in sight, reported The Star.

Speaking on behalf of the group, Mohd Adam Abdul Aziz urged the Prime Minister “to step in and help the residents, who want to see the redevelopment realised as soon as possible”.

He noted that Ritzy Gloss Sdn Bhd, the developer, has completed the legal process and paid out compensation.

Meanwhile, Zulfakar Wahid, Chairman of Kampung Sungai Baru Property Owners Welfare Association, pointed out that more than 90% of the homeowners have agreed to the redevelopment plan and the decision of the government to postpone the project gave the impression that the majority’s voice is not being heard.

Azman, who has met with all parties involved, said he will present all the information to the Prime Minister “for him to review and make a decision”.

 4) Selangor MB hands over keys to new Rumah Selangorku owners

Selangor Mentri Besar Datuk Seri Amirudin Shari has handed over keys to about 650 new owners of Rumah Selangorku Kemuning Idaman in Bukit Rimau, Shah Alam.

Among the new owners was Selangor Housing and Property Board (LPHS), which acquired 30 housing units for a Smart Rental Scheme to help those unable to purchase their own homes, reported The Star.

“The Selangor government is aware that the present challenging situation, such as the Russia-Ukraine geopolitical conflict and global economic uncertainties, have caused an increase in the prices of construction materials,” said Amirudin.

He revealed that the state council has approved 386 projects, which involve 221,671 Rumah Selangorku units, as of 1 January 2023.

Of these, 93 projects have already been completed, 61 projects are under construction and the rest are still in the planning stage.

Meanwhile, Rumah Selangorku 3.0 will see new policy improvements considering aspects such as building components, specifications, development zone, building control and enforcement.

The policy, which took effect on 3 January, was expected to help achieve the 60,000-unit target by 2025.

 5) Bukit Begunan portion of Pan Borneo Highway to be completed in November

The first phase of the Pan Borneo Highway (LPB) project, which runs from Simpang Pantu to Batang Skrang in the Bukit Begunan section is expected to be completed in November – later than the original June deadline.

Works Minister Datuk Seri Alexander Nanta Linggi explained that the delay was due to a redesign of the project structure following landslide incidents.

“Previously, the project design for this section used earth fill as an embankment but there was a failure in the project and it was changed to a design using rockfill after a detailed study was carried out,” said the minister as quoted by Bernama.

He added that the use of 721,000 cubic metres of boulders for the embankment project was 50% complete, resulting in an additional allocation of around RM70 million.

Overall, the LPB project is 92% complete, said Pan Borneo Highway Unit Head of the Sarawak Public Works Department Awang Mohamad Fadillah Awang Redzuan.