Working from home trend spurs demand for bigger houses

12 Essential Work from Home Trends & Predictions for 2021/2022

THE Malaysian property market, despite still navigating the shocks of the Covid-19 pandemic from last year, is expected to perform better in 2021.

PPC International managing director Datuk Siders Sittampalam says while the pandemic “isn’t going to go away” soon, he is optimistic that the property market will find a way to “work around it.”
PPC International managing director Datuk Siders Sittampalam.

“The fear of the pandemic will not end anytime soon. It will take a while for everyone to go back to their normal live. “With that said, people are going to have to work around it. You can’t expect to be placed under cold storage for too long. Life needs to go on and the real estate segment is the same,” he tells StarBizWeek.

While the vaccine will be available soon, he emphasises that things will not go back to pre-pandemic conditions overnight.

“A sustainable model will need to be put in place for the local property market to work through the pandemic. Eventually, everyone will need to find what works best for them to be able to cope in this challenging environment.”Siders says the concept of working from home (WFH), which has become the norm, could change the mindset of housebuyers going forward.

“The WFH concept has fuelled the demand for properties that don’t just serve as homes, but also working spaces. Gone may be the days where a single bedroom apartment was more than sufficient.

“Now, there will likely be demand for larger properties that can double-up as your office.”

TA Securities, in a recent report, shared a similar sentiment.

“Demand for landed property remains resilient as we saw recent launches at (S P Setia Bhd’s) Alam Impian and Setia Alam achieved commendable take-up rates of more than 90%. Meanwhile, S P Setia sees a pent-up demand for larger homes as remote working options gain traction after the movement control order (MCO).

“Similarly, the trend of opting for bigger space is also observed in Singapore, as we saw a surge in buying interest at Daintree Residence, Singapore. This project was only 30% sold after two years of launch. However, the take-up rate shot up to 90% when the sales gallery reopened after circuit breaker was lifted.”

Despite the implementation of a second MCO, Siders is optimistic that any repercussions on the property sector will not be as bad as the first one that was implemented in March last year.

“I think the market will be better than last year. Activity has not come to a full standstill like the first MCO.

“The sudden shock during the first MCO is not reflected in the current one. Generally, the market will be better than last year,” he says.

Meanwhile, Knight Frank Malaysia managing director Sarkunan Subramaniam says the performance of the residential market is very much dependent on how the economy moves forward.

“The anticipated commercial rollout of the Covid-19 vaccine by the first half of this year will certainly boost the hopes for the country’s economic recovery and lift overall consumer sentiment.

“However, the current ongoing political uncertainties amid the worsening Covid-19 have led property buyers as well as developers to rethink their future plans and strategies. The residential market is expected to remain challenging in the first half of 2021,” he says in a recent statement.

Slight recovery

Sarkunan says the residential market showed a slight recovery post the first MCO last year with selected developers reporting improved bookings, supported by the low interest rate environment and pent-up demand.

“The reintroduction of the Home Ownership Campaign (HOC), coupled with several stimulus packages as well as the initiatives tabled under Budget 2021, offered a ray of hope for the sluggish residential market.

“However, the recent spike of Covid-19 cases, which led to the implementation of the second MCO, will likely derail market recovery in the short term.”

The government reintroduced the HOC in June last year under the Short-Term Economic Recovery Plan (Penjana). Under the campaign, stamp duty exemption will be provided on the transfer of property and loan agreement for the purchase of homes priced between RM300,000 and RM2.5mil.

Meanwhile, the exemption on the instrument of transfer is limited to the first RM1mil of the home price, while full stamp duty exemption is given on loan agreement effective for sales and purchase agreements signed between June 1 to May 31, 2021.

In addition, the government has announced real property gains tax exemption for Malaysians for the disposal of up to three properties between June 1, 2020 and Dec 31, 2021.

The HOC was kicked off in January 2019 to address the overhang problem in the country.

The campaign, which was initially intended for six months, was extended for a full-year.

Better outlook

The HOC proved successful, having generated total sales of RM23.2bil in 2019, surpassing the government’s initial target of RM17bil.

Maybank Investment Bank Research (Maybank IB) in a recent report says the local property sector is poised for recovery in 2021, driven by a better economic outlook and historically low interest rate environment, as well as pent-up demand.

“In our view, first half 2021 sales should perform better than the second half,as we expect a spike in sales before the end of the HOC and better political stability during the State of Emergency until Aug 1.”

Maybank IB adds that the imposition of the MCO this year should have a lower damage impact on sales as compared with the first MCO last year.

This is because most developers have acclimated to the “new norm” and accelerated their efforts to market their products via the digital platforms.

“A few developers told us that 50% to 70% of their 2020 sales were derived from the online platforms. Construction works are allowed during the MCO as long as approvals are obtained after registering with the Covid-19 Intelligent Management System and adhering to the standard operating procedure, hence, limiting the impact on first quarter 2021 earnings.”

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A look back at Trump's four years, US trumped out in trade war

A look back at Trump’s four years 

https://youtu.be/2BdEO3hKt60 

 

With the new President in the White House, the time to embrace the global community is now and not delay any longer. Washington will then be looked upon with great respect after four years of rule by one man, which was nothing but traumatic, chaotic and deceitful.( Pic shows Biden signing executive orders on first day of Presidency.)

AS we now welcome the era of Bidenomics over the next four years, one cannot help but to review the impact of the previous US president’s tenure which ended just three days ago.

One of Trump’s rallying cry was his call of making America great again. With that, the US embarked on a trade war with the rest of the world, in particular with China, to reduce the massive trade deficits that the US has been experiencing for umpteen years.

In addition, Trump also wanted to bring foreign manufacturers to the US on the assumption that this would reduce their import bill, attracting foreign direct investments as well as creating jobs for Americans.

The trade war saw US imposing tariffs on Chinese goods, and in retaliation, China too started to impose tariffs on US goods – effectively a tit-for-tat move by the two superpowers where effectively nobody wins.

The US-China trade war led to nervousness in markets, in particular during the 2018-2019 period, but the impact of the stand-off tapered off sometime about a year ago when both agreed to enter into the Phase 1 trade deal.

To recap, that trade truce entailed China agreeing to increase the import of American goods and services by at least US$200bil over the next two years. China, which purchased some US$130bil in total goods and US$56bil in services in 2017, was supposed to increase total imports by about US$162bil in total goods purchased and US$38bil in services over the two-year period.

In terms of breakdown for the year 2020 and 2021, China was to increase its imported goods by US$64bil in 2020 and US$98bil this year from the base line figure of 2017. In terms of services, the level of imports by China was expected to increase by about US$13bil last year and US$25bil this year.

Since the Phase 1 trade deal was inked about a year ago, how has the Chinese trade with the rest of the world and in particular the US performed in 2020? Overall, with the December 2020 trade data just released last week, China saw its total exports for the year rising by 3.6% while imports fell by 1.1% year-on-year (y-o-y).

This, of course, would lead to one thing – a widening trade surplus. In fact, China’s 2020 total trade surplus jumped by 27% to US$535bil – the highest in five years.

How about China’s trade with the US? Based on the data released, China’s trade surplus with the US rose by 7.1% to US$316.9bil and contrary to what president Trump intended to achieve with his tariff measures. Chinese exports to the US in 2020 increased by 7.9% to US$451.8bil while imports surged 9.8% y-o-y to US$134.9bil.

This definitely fell short of the targeted US$194bil total goods that was supposed to be imported by China in 2020 (US$130bil base line + US$64bil target). In terms of percentage, the shortfall was as much as 30%.

Based on the data from the US, trade with China up to November 2020 showed that US exports to China totalled some US$110bil while imports stood at US$393.6bil, giving rise to a trade deficit of US$283.6bil.

It is likely that for the month of December 2020, the US will add another US$30bil in deficit and thus bringing the 2020 total trade deficit with China to around US$314bil. Total exports for the year will likely come in at about US$125bil, up 15.8% y-o-y; while imports are expected to come in 3% lower at US$439bil.

Compared with the 2018 import value, US imports from China effectively would have dropped by about US$102bil but exports to China have increased by just 2.5% from the 2018 level of US$122bil.

In essence, while the US bought 19% less goods from China, what it sold to Beijing was barely any higher. In addition, while the US trade deficit with China may have improved by about US$30bil y-o-y in 2020, the Chinese trade surplus with the rest of the world is significantly higher.

What does this mean for Phase 1 Trade Deal?

With a shortfall of some US$70bil (based on US data) in 2020 and on the assumption that China is to import an additional amount of US$98bil this year to meet the target of Phase 1 trade deal, China would need to import as much as US$298bil worth of goods from the US this year!

This is derived after taking into consideration the base line of US$130bil in 2017, adding the US$70bil shortfall in 2020 and topping it up with the pledged US$98bil increase. Indeed, it is highly unlikely that China would be able to meet this target, which is more than doubled what it imported from the US last year.

Effectively, Phase 1 trade deal is dead in the water. Trump’s strategy can be said to have failed and China in effect has emerged as a clear winner in the trade war. What is now left to be seen is what will Bidenomics bring to the table as far as the trade war is concerned.

Will the new President soften his approach towards China? Will it be status quo or will Biden continue with Trump’s hard approach in dealing with China? After all, Janet Yellen, the treasury secretary nominee was quoted as saying that the US is prepared to take on China’s “abusive” trade and economic practices.

However, in the interest of globalisation and ease of movement of goods and services, tariffs effectively serve no purpose, especially to consumers as it actually only adds to the cost of goods purchased as the cost of tariff is passed on to the end buyers. Tariff is not a tool to restrict movement of goods or services. Instead, nations should strive to make themselves more competitive.

With the new President in the White House, the time to embrace the global community is now and not delay any longer. Washington will then be looked upon with great respect after four years of rule by one man, which was nothing but traumatic, chaotic and deceitful.

By Pankaj C. Kumar who is a long-time investment analyst. Views expressed here are the writer’s own.

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Vaccine distribution shouldn’t lead to catastrophic moral failure

 

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WHO Director-General Tedros Adhanom Ghebreyesus on Monday lashed out at inequitable distribution of COVID-19 vaccines. He said most of the vaccines "have now been administered" in rich countries. "The world is on the brink of a catastrophic moral failure - and the price of this failure will be paid with lives and livelihoods in the world's poorest countries," he warned.

For now, seven COVID-19 vaccine candidates have been administered worldwide, the key of which are the US-developed and China-developed ones. The US-made vaccines have basically flowed to developed countries, while the China ones have mainly gone to developing countries.

Among rich countries that use US vaccines, the US has vaccinated 12 million people, ranking the first. 4.31 million doses (including the Oxford-AstraZeneca vaccine) have been administered in the UK, topping European countries. Canada reportedly has ordered enough vaccine doses to protect each Canadian five times. Three members of the Five Eyes alliance have left others way behind them in vaccine distribution. They have prioritized their own demands amid short vaccine supply, though Britain claimed it raised donations to help vulnerable countries access COVID-19 vaccines.

The US, the UK and Canada all shout loudly for developing countries' human rights. But they are the ones contributing to "a catastrophic moral failure" that Ghebreyesus said. When the interests of their own countries are not involved, they express concerns about human rights of other countries. But when they need to take real actions to help other countries realize human rights, they retract their heads as turtles.

Vaccines developed by Chinese companies have become a key resource to break rich countries' privilege and safeguard developing countries' rights. Chinese vaccines are cheap, easy to be transported and used all over the world. Besides, China has an explosive vaccine production capability and it has a greater surplus to provide the outside world, since the domestic epidemic in China has been relatively alleviated.

At the initial stage of distribution when supply is short, US vaccines will inevitably go to developed countries. The Five Eyes countries know this well. According to the WHO, it took over 10 years for life-saving HIV/AIDS drugs to reach poor countries after its invention. When the poor countries could put the HINI vaccines into use, the epidemic had already been over. Based on the vaccine distribution order in the past, developing countries will undergo many delays and setbacks to get US COVID-19 vaccines.

The Chinese vaccines are an important humanitarian supplement, but the US and its major allies have taken a cold attitude and even disparaged Chinese vaccines. They didn't offer much help in Chinese vaccines' Phase III trials. Particularly, Western public opinion in general is not friendly. It is keen on hyping and exaggerating any information unfavorable to Chinese vaccines and accuses China of engaging in "vaccine diplomacy."

This has formed a sharp contrast with the fact that Western public opinion influencers are flattering Pfizer vaccines and downplaying news the vaccines caused deaths.

This represents vaccine nationalism and egoism that disregards the urgent humanitarian demands, giving rise to an atmosphere in which political prejudice dominates the pandemic fight. Unity is lacking in the fight against the virus, mainly because of the negative attitudes of the US and its major allies.

On the other hand, the top leaders in several countries such as Indonesia, Turkey, Seychelles, Serbia and the Philippines have strongly backed Chinese vaccines. Some even publicly got vaccinated with Chinese vaccines. This has had a positive impact on the confidence of developing countries with Chinese vaccines. They are safeguarding the rights of developing countries to get vaccinated simultaneously with developed countries and they are bravely pursuing fairness.

US and Chinese vaccines have their own advantages. They are supposed to cooperate with each other closely to fight the novel coronavirus. Besides prices and logistical factors, their usage in developed and developing countries should not be affected by politics. Don't let the "catastrophic moral failure" become reality and consolidated. It must be stressed that the coronavirus is the common foe of humanity, and the battlefield and tools that fight against it cannot be separated.

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Democracy in the US in clear and present danger

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Next Wednesday, Joseph Biden will be anointed President, guarded by 20,000 National Guard troops in battle gear against not foreign enemies, but domestic threats

 A week is a long time in politics. Last Wednesday, armed supporters of President Trump stormed the sanctity of the Capitol, the temple of American democracy.

This Wednesday, President Trump became the first president in American history to be impeached twice.

Next Wednesday, Joseph Biden will be anointed President, guarded by 20,000 National Guard troops in battle gear against not foreign enemies, but domestic threats.

This was supposed to happen only in Hollywood movie scripts.

 Consider these bizarre facts: the pandemic is claiming more than 4,000 deaths daily in the United States; digital media like Twitter, YouTube and Facebook have banned tweets and comments by their own President; all US stock market indices are still rising, and bitcoin has surged by 27.9% in 13 days.

The article of impeachment stated in more stark terms than any foreign commentator would dare to express: “President Trump gravely endangered the security of the United States and its institutions of government. He threatened the integrity of the democratic system, interfered with the peaceful transition of power, and imperiled a coequal branch of government.

“He thereby betrayed his trust as President, to the manifest injury of the people of the United States.Wherefore, Donald John Trump, by such conduct, has demonstrated that he will remain a threat to national security, democracy, and the Constitution if allowed to remain in office, and has acted in a manner grossly incompatible with self-governance and the rule of law.

“Donald John Trump thus warrants impeachment and trial, removal from office, and disqualification to hold and enjoy any office of honour, trust, or profit under the United States.”

House Speaker Nancy Pelosi (pic below)summed it up as “he is a clear and present danger to the nation.”

Arguably, Trump has committed the sin of poisoning the well of democracy, not just in America, but for the rest of the world.

Although Western democrats extol its virtues back to the Greek Age, modern liberal democracy is very recent.

As late as 1978, only one third of the world lived in democracies; by 2015, more than half do. But since then, populism, Brexit and Trumpism have caused many to lament that democracy is receding.

Today, the gold standard of liberal democracy in America is being tested, if not questioned.

Work in progress

The problem is that liberal democracy based on social equality, rule of law, tolerance of diversity, is a work in progress.

Given very different cultures, history, religion and institutional set-ups, democracy is practiced differently, requiring huge efforts by all citizens.

Democracy that has no performance-accountability when what is promised is not delivered.

That became evident when the 2008 global financial crisis accentuated rising social inequality and insecurity to large segments of the population.

Democratic politics fragmented and did not seem to be able to deliver on promises.

Austrian economist and political philosopher Joseph Schumpeter became famous for his observation that the driver of capitalism was entrepreneurship, which led to creative destruction. He was equally original and sharp in his realist analysis of democracy.

In his classic Capitalism, Socialism and Democracy, four conditions must be satisfied for democracy to work: the quality of politicians in terms of ability and moral character; social consensus that democracy does not solve everything; a well-trained and effective bureaucracy; and finally, “effective competition for leadership requires a large measure of tolerance for difference of opinion.”

Schumpeter understood that democracy has difficulty in making decisions when society is deeply divided.

Vote-seeking

Vote-seeking behaviour means that policies are always for the short-term, so politicians under serve the long-term interests of the nation.

For example, democratic and rich countries like Australia cannot even agree on dealing with climate change, because vested interests in the mining industry consistently block change through lobbying. If democracies cannot deliver long-term structural reforms that are painful and unpopular, then in the long-run, citizens will seek alternatives, such as autocracies or anocracies (democracy with autocratic characteristics).

Trump put American democracy in clear and present danger by violating all four Schumpeter conditions.

First, nearly half the voting population ignored his moral issues, because they believed him calling the mainstream news as “fake”.

Second, he violated many of the unspoken rules, codes and conventions that buttressed democratic checks and balances, aided by lawyers and attorney generals whom he also threw under the bus.

Third, he questioned the loyalty and efficacy of the vaunted American bureaucracy, which then failed to protect the Capitol from violent protests.

Lastly, he openly sought division, rather than work bi-partisanly to heal social divisions.

Asians have much to learn from Schumpeter, who foresaw that democracy is about majority rule, but works in practice through an elite that deals in votes rather than in money. Since capitalism by definition values money more than labour, money under financial capitalism has a nasty habit of corrupting politics.

How to control money politics from corroding diverse rights and public goods is a perennial issue in all systems of governance.

If there is one lesson that should resonate in Asia, it is that violence cannot be an answer to the democratic process.

Inciting violence

Trump realised too late that inciting violence in his supporters to protect his version of electoral victory ended up with him denouncing violence in the name of law and order.

Retribution occurs to those who incite violence abroad, because violence can bounce back at home.

Next week, the Trump Reality Show will thankfully end, and life will return to some form of normality, so we can address the threats of pandemic and job losses without being diverted by another tweet.

For Trump, impeachment will only withdraw his right to hold further public office. He was made by media, and he will be haunted by media for the rest of his life. But he will go on to earn millions from book sales and paid appearances.

The clear and present danger to democracy is a distorted system where heads I win, tails you lose.

We need to change this system, but we don’t know how to do this democratically. Perhaps Joe Biden has the answer.

By Andrew Sheng, a Distinguished Fellow of Fung Global Institute, a global think tank based in Hong Kong. The views expressed here are his own.

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Malaysia's all states except Sarawak go back into partial lockdown (MCO 2.0), state of emergency declared by the King

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COVID-19 | Prime Minister Muhyiddin Yassin today unveiled tougher measures to control the spread of Covid-19.

This includes the implementation of full movement control order (MCO) on eight states and territories.

They are Penang, Selangor, Malacca, Johor, Sabah, Kuala Lumpur, Putrajaya and Labuan.

Another six states will be under the ongoing conditional MCO but with stricter rules than the existing ones.

Perlis and Sarawak are the only two states that will see the most relaxed rules as they will be put under the recovery MCO.

However, the Sarawak government today moved to place Kuching, Sibu and Miri under a conditional MCO.

Muhyiddin, in a live address on national TV, said the MCO will take effect at midnight of Jan 13 until Jan 26. 

 Interstate travel ban

For states under MCO and conditional MCO, the prime minister said social activities involving gatherings will be banned, similar to measures during the MCO in March last year.

“To reduce the risk of infection and to break the Covid-19 chain, social activities involving large gatherings such as wedding reception, conference, religious parades including Thaipusam, meetings, seminars, courses and group sports will not be allowed in any way,” he said.

However, he said states under the recovery MCO can still carry out social activities, but subject to strict standard operating procedures (SOP).

Furthermore, Muhyiddin said an interstate travel ban will be imposed nationwide.

As for states under the full MCO, they will see stricter rules as interdistrict travel is also not allowed.

"With the interstate and interdistrict travel ban, roadblocks will be enforced from midnight of Jan 13.

"For states under MCO, the movement will only be limited to within a 10km radius," he said.

Muhyiddin added that only two persons per household are allowed to leave the house to purchase necessities from supermarkets and grocery stores.

He said the two persons per vehicle rule also applies.

Essential services

Similar to the MCO in March last year, Muhyiddin said only businesses on the essential economic sector list will be allowed to operate.

“The government has identified five sectors that will be allowed to operate and are categorised as essential economic sectors.

“They are manufacturing, production, construction, services, trade and distribution as well as plantations and commodity,” he added.

Muhyiddin said these sectors are allowed to operate as they are needed to ensure the supply chain of essential goods.

However, he said only 30 percent of their administrative staff will be allowed to operate from the office.

The prime minister also urged those who are allowed to continue working to abide by the SOPs.

He added that the International Trade and Industry Ministry will provide further details on the types of services that are considered essential economic sector.

 

Muhyiddin said restaurants in states under full MCO are not allowed to provide dine-in services.

They will only be allowed to provide takeaway services.

However, he said restaurants in states under the conditional MCO and recovery MCO may continue to operate as per normal, subject to the Health Ministry’s SOP.

Elaborating on the full MCO states, Muhyiddin said supermarkets, clinics, hospitals, pharmacies and banks will continue to operate but with precautions.

He added that students who will be sitting for their 2020 and 2021 SPM papers will still be allowed to attend school.

As for religious activities, he said only a maximum of five people in places of worship is allowed.

However, religious activities in places of worship located in states under the conditional and recovery MCO can still proceed, in accordance with the SOP.

One distinction from the MCO in March last year is that outdoor exercising is allowed.

However, Muhyiddin said they may only do so with members of the same household.

He added that those going out for jogging or cycling should only do so with one other person at most.

Group exercise is not allowed.

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MCO, CMCO, RMCO: Dos and don'ts - New Straits Times

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Azmin: Essential services in states under MCO  must operate with strict SOP

 

 

 

Miti's list: Essential services allowed during MCO

 

 

Firms allowed to operate must follow SOP

 

Kindergarteners in high spirits | The Star

 

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