Share This

Showing posts with label Car Sales. Show all posts
Showing posts with label Car Sales. Show all posts

Tuesday 4 August 2020

‘It’s the right time to invest’


We found that data availability and transparency in the real estate sector is less than what we were used to when we were working in the financial industry and we are set to change that, ” says Red Angpow co-founder Erhan Azrai.


PETALING JAYA: Even as many consumers are cautious in purchasing high-ticket items in light of the Covid-19 pandemic, industry experts say sale of properties and cars have been rising since June.
Real Estate and Housing Developers Association (Rehda) Malaysia national council member Tony Khoo Boon Chuan said property sales had picked up since June, thanks to lower interest rates and the extension of the government’s Home Ownership Campaign (HOC) until 2021.

“No doubt buyers are guarded when buying high-priced products.

“But others who are not affected financially also realise the time is here to buy or invest in a new property, ” he said in an interview.

Apart from the HOC’s 10% discount on the selling price, Khoo said buyers also enjoy incentives such as stamp duty exemption, free legal fees and freebies such as home security and alarm systems, additional cabling, fittings and fixtures.

“There are so many choices with perks and benefits in the market now for buyers.

“This is indeed the right time to invest, ” he said.

HOC is a government initiative in 2019 aimed at supporting homebuyers, and it has been reintroduced in June under the Penjana economic revival plan.

Khoo noted that the government’s exemption of real property gains tax for Malaysians for disposal of up to three properties had made it easy for property sales in the secondary market.

“This will certainly encourage a lot of investors and buyers who are looking to upgrade, ” he said.

In the automotive industry, both new and used cars have seen brisk sales in recent months, with foot traffic at showrooms having increased tremendously.

Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said new car sales improved to 42,000 in June, compared with 22,000 in May, following the government’s announcement to remove the sales tax for certain categories of vehicles.

“Many car companies are offering lots of discounts and attractive hire purchase rates to entice customers, ” she said.

Although many car buyers are still cautious, she said premium cars purchases did not see much problem.

In fact, Aishah said MAA had readjusted the forecast of Malaysia’s total industry volume to 470,000 for this year, versus the earlier forecast of 400,000.

Federation of Motor and Credit Companies Association of Malaysia president Datuk Tony Khor Chong Boon agreed, adding that the used car market had also experienced tremendous growth in July.

“June sales were on par with full recovery following the recovery movement control order.

“July was very encouraging with 37,880 units sold, which is 25% higher than the same month last year, ” he said, adding that it was the highest monthly sales achieved in the last five years.

In contrast, he said used car sales only chalked up 303 units in April, when the usual monthly figure was between 30,000 and 35,000 units.

Khor said several factors contributed to the recent good vibes in the automotive industry, with measures introduced in the government’s economic revival plan shown to work.

“The moratorium has allowed some to have more money to spend, while the sales tax exemption has stimulated sales.

“Some buyers choose to get a car due to concerns about physical distancing and hygiene in public transport, ” he said, adding that used cars costing around RM30,000 were popular.

He noted that brisk sales of used cars resulted in a long waiting time for inspection at Puspakom, with a minimum wait time of at least five to seven days, and even 10 days or more at some locations.

When asked, Khor said it was hard to predict how long the good vibes would last because the real challenge would come when many borrowers are required to pay when the moratorium is lifted beginning October.

“To keep the market and economy stimulated, the government has to periodically come out with relevant measures and policies, ” he said.

Human resource executive CW Lim, who has been househunting for a few months, said he would make use of the discount and offers to buy a house in the Klang Valley.

“With the HOC, I’ll be able to save tens of thousand in downpayment, stamp duty fees and legal fees that could take me years to save up.

“Since my job and industry is not affected much, I hope I will soon own a house through these offers, ” said the 30-year-old from Klang.

Clinic nurse Farisha Azman, 29, who has been commuting to work from Subang Jaya to Shah Alam daily using the train, said she was in the process of buying a new car.

“Not having to worry about distancing on the train gives me peace of mind, ” she said.


Serving property investors’ needs

WITH the property market expected to remain soft over the next few months, tech startupRED ANGPOW Analytics is hopeful that property owners will be knocking on its doors for help to better manage their asset portfolios.

The company does online map-based real estate due diligence, feasibility study and price analytics.

“We foresee asset holders requiring good information to manage their portfolios. Data on past transactions that have been useful will no longer be enough.

“We found that data availability and transparency in the real estate sector is less than what we were used to when we were working in the financial industry and we are set to change that, ” says Red Angpow co-founder Erhan Azrai.

The startup generally has two groups of target clients, which are development-based organisations and individuals who use research to make decisions such as property investors, analysts, researchers, valuers and banks. Red Angpow’s services are not only useful for developers, but also related industries that are supporting real estate.

Erhan notes that clients are becoming savvier and are looking for more opportunities in the soft property market and they will need more relevant data to make their investment decisions.

“After the 1997-1998 financial crisis, the National Property Information Centre (NAPIC) was created to provide accurate and timely information on the property market.

“In the current environment, we believe the timing is right for an enhanced service.

“In the longer term, there is a need to increase the efficiency of the real estate market with a lot more data transparency.

“From the work that we have done so far, we saw that a lot of data is actually available, but it is unstructured and comes from multiple sources.

“Before we can compile all this data via an artificial intelligence means, we are doing the very basic first, which is getting the data cleaned, tagged and harmonised in a form that can be used easily by researchers, ” he says.

He adds that ensuring property investors have timely and accurate data has become even more important now as real estate loans make up a sizeable portion of total loans.

As of February 2020, Erhan notes that real estate loans in the banking system stood at RM836bil or 47% of total loans.

“This staggering amount needs better data to manage the portfolio, especially when industries are cutting jobs. A 10% downward correction will affect up to 5% of the total loan portfolio, depending on the age of the loan asset. That’s a huge amount.”

While the movement control order (MCO) has hindered some of its plans, Red Angpow has been fortunate to have raised enough capital to weather the course for the next two years.

“So, we are going to stay the course. The MCO allows us to hunker down and complete our work. We planned to launch a subscription for property analytics dashboard by July. But we are confident that we will hit the ground running once again after the MCO is lifted, ” he says.



Related posts:


( From left) Chow looking at the Penang NCER human capital graphic info. With him are John, state executive councillor Datuk Abdul Halim .


https://youtu.be/wT4fZ9IcR6c https://youtu.be/nzqy79-m8Z0 Extension for those in need | The Star Rapt attention: Laun...


Do we still need an office?

Millennials now make up over a third of the workplace and overwhelmingly value flexibility in where, when and how to work. And top talent has been increasingly clustering in dense urban areas and has been unwilling to commute to suburban office parks

Friday 19 December 2014

Honda Malaysia leads the way

IT has been a good year for Honda Malaysia as its sales figures from January to November has steadily increased to 69,150 units


This is a 34% increase compared to the brand’s total sales of 51,550 units last year..

In fact, Honda Malaysia claims that it is now the market leader in the non-national passenger car market, taking away the title from UMW Toyota.

According to Akkbar Danial, general manager for Honda Malaysia and also the company’s head of marketing, Honda Malaysia is well on track to hit its 2014 target, which is 76,000 units.

“The tsunami and earthquake in 2011 disrupted our production and parts supply but we restructured our business operation and devised a threeyear plan to achieve a high volume sales in Malaysia,” says Akkbar.

He adds that the main strategy is to offer affordable products that give buyers value for money in order to be competitive in the Malaysian market.

“We achieved this by increasing the localisation of our parts and the result is the current City and Jazz, which both carry competitive prices with added features.”

The other approach was a re-look into its operations and as a result, Honda Malaysia has expanded its production with the new No.2 Line at its Pagoh plant in Malacca.

This has increased its production capacity from 50,000 units to 100,000 units a year.

In the same period, Honda Malaysia also looked into increasing efficiency in its factory and expanded its pre-delivery inspection process and parts warehousing.

“Finally, to accommodate the high volume of sales, we have also expanded our dealer network from 62 dealers in 2012 to 78 dealers this year. This is to ensure that our customers are more satisfied. We plan to have a dealer in all major towns in Malaysia,” explains Akkbar.

Currently, its best selling model is the City, which has sold 32,465 units from January to November this year. Honda has also introduced variants that cater to all budgets.

The Jazz for example, has three variants and prices start at RM72,800 and go up to RM87,800. The City has four variants and its prices start at RM75,800 with the highest variant priced at RM90,800.

Such a wide range of prices offer options to the consumers, which translate to more offerings and higher sales.

Honda Malaysia has 11 models in its list and this includes three hybrid models - the Civic Hybrid (RM185,500), CR-Z (RM183,000) and the Jazz Hybrid (RM89,912). The latter is assembled locally and enjoys the hybrid benefits introduced by the government.

Rightways