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Focus Malaysia
4 days ago
- General
- Focus Malaysia
From ironed uniforms to flexible work: Bridging Malaysia's generational gap
I GREW up watching the hardest-working people I've ever known—my parents—build their lives with discipline, thrift, and remarkable resilience. They didn't talk much about sacrifice. They lived it. One of my fondest memories from childhood is the scent of spray starch on my father's army uniform, particularly his No. 3 work dress, a light olive-green ensemble worn for daily duties. Every morning, he'd iron it with military precision: sharp creases and clean lines. The scent of starch filled the air. It was oddly soothing. It signalled structure (pun intended, as my father served in the Royal Signal Regiment), responsibility, and a quiet pride in serving something bigger than oneself. Back then, hard work meant stability. Stability meant progress. That equation, however, doesn't carry the same weight today. When we overlook how the economic and social landscape has shifted, we risk misreading a fundamental change in values. We all grew up in different Malaysias My parents never asked for much. When my father retired from the military after 21 years, in a career he often summed up with quiet conviction as 'Mati hidup balik sekalipun, aku tetap jadi askar', he did so without much fanfare. They simply packed up their belongings, left the army quarters and returned to their hometown where they bought their first home—a modest single-storey terrace house paid for with his equally modest pension. Raising six children, they supplemented their income through long hours and hard labour. At the time, government pensions, community support, and frugality were enough to support a family of eight. But the Malaysia they lived in is no longer the one young people face today. Despite holding degrees and full-time jobs, many young Malaysians (the writer included) continue to struggle with home ownership, job security, and the rising cost of living. According to the Department of Statistics Malaysia (DOSM), the median household income in 2022 was RM6,338 per month, or roughly RM76,056 per year. Based on the global housing affordability benchmark, where a home should cost no more than three times the annual household income, a reasonably priced home in Malaysia should be around RM228,000. In contrast, data from the National Property Information Centre (NAPIC) shows that the Malaysian House Price Index for the first quarter of 2025 stood at 225.3 points, with the average house price at RM486,070—more than double the affordable range. Behind these figures are personal struggles and difficult choices. These are not just economic pressures, they are deeply human. This isn't entitlement. It's adaptation. Different priorities, same worth The generation that built Malaysia's early economy placed immense value on order, loyalty, and seniority. In their time, these values aligned with a world where playing by the rules led to security. Today, that promise may no longer holds. Even those who follow the 'rules', i.e., get a degree, secure a job, work hard, may still find themselves struggling. As a result, today's generation places greater emphasis on mental health, work-life balance, and meaningful engagement. They speak openly about burnout and push back against outdated norms that equate long hours with dedication. They seek dignity, not just stability. Purpose, not just pay checks. This isn't a moral failing, but a reflection of a changing world. In Islamic economic principles, fairness ('adl), compassion (ihsan), and balance is key to a just society. When times change, justice requires systems to adapt. What some may view as a lack of resilience is often structural strain, not individual weakness. Shifting values don't signal decline: they reflect reality. From blame to building Malaysia is ageing. By 2030, 15% of our population will be over the age of 60. At the same time, younger generations i.e., Gen Z and Gen Alpha will dominate the workforce. Without mutual understanding, our social cohesion and economic vitality are at risk. Different generations have different concerns. In the workplace, older Malaysians value punctuality and tenure. Meanwhile, the younger ones seek autonomy and flexibility. National planning must evolve with the times. Our education, employment, and welfare systems need to reflect current realities, not just inherited assumptions. For instance, Malaysia could introduce a centralised 'portable benefits wallet' for gig workers, where contributions to retirement savings, healthcare, and social protection follow the worker—not the employer. This model, already being piloted in the US and parts of Europe, ensures that contract and gig workers are not left behind in an economy where job security is no longer guaranteed. Similarly, a Housing Start-Up Account for youth under 35, where the government matches a portion of savings—such as RM1 for every RM2 saved annually—could help first-time homebuyers overcome affordability barriers. This approach, inspired by Singapore's CPF model, would encourage long-term financial planning while making home ownership more attainable. These kinds of forward-looking policies recognise that fairness looks different across generations. And, therefore, so does respect. – June 3, 2025 Dr Mohd Zaidi Md Zabri is the Interim Director at the Centre of Excellence for Research and Innovation for Islamic Economics (i-RISE), ISRA Institute, INCEIF University. The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia. Main image: The Borneo Post
Sinar Daily
18-05-2025
- Business
- Sinar Daily
New rules needed to balance housing supply, affordability
KUALA LUMPUR - The government is proposing stricter policies for developers, requiring them to sell at least 15 per cent of completed residential units before approving new construction projects to reduce housing overhang. Senior lecturer at the Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Dr Muhammad Iqmal Hisham Kamaruddin, said this measure aims to tackle the issue of unsold houses priced between RM300,000 and RM500,000 in the country while also preventing oversupply in the market. "To balance excessive supply, the government can enforce stricter regulations, such as making approvals for new residential development projects subject to the existing property overhang in a given area. "For example, if the number of unsold residential units exceeds 15 per cent in a particular area, the government should tighten approvals by not allowing new residential construction until the number of unsold units decreases,' he told Bernama. Houses priced between RM300,000 and RM500,000 have been recorded as the most common unsold properties in the country during the third quarter of 2024. According to the National Property Information Centre (NAPIC), these unsold units represent 31.9 per cent of the property market segment, comprising 7,003 units valued at RM2.78 billion in 2024. Muhammad Iqmal added that the government should also ensure that property prices in any area correspond to the affordability and average income of the local population. As an example, he said if the average household income in a state allows for purchasing property worth RM500,000, then houses should be offered at prices not exceeding RM500,000. He explained that the imbalance between household income and housing prices is the main reason for the high number of unsold houses priced between RM300,000 and RM500,000 in Malaysia. "The primary cause is that household income does not align with the housing price range. The median household income in Malaysia was around RM6,338 in 2023, while the latest Malaysian House Price Index (MHPI) indicates an average price of RM483,879. "In this situation, most houses priced between RM300,000 and RM500,000 require a minimum monthly commitment of RM1,500 to RM2,500, which means the household needs an income of at least RM4,000 per month. This represents over 60 per cent of the individual's monthly income,' he said. Additionally, Muhammad Iqmal pointed out that the ability to provide a deposit of at least 10 per cent of the property value is another factor. Meanwhile, he said the trend in average house prices, as shown by the MHPI, indicates an increase in property prices in Malaysia up to 2024 despite many units remaining unsold. "For example, the average house price in Malaysia was RM465,604 in 2023 and increased to RM483,879 in 2024. "In 2023, the average price of a single-storey terrace house was RM238,600, rising to RM251,500 in 2024, while for two-storey terrace houses, the average price increased from RM442,549 to RM466,506 during the same period,' he added. He noted that this contradicts economic theory, where an oversupply would typically lead to lower prices. "In this case, housing prices have not only failed to decrease but have continued to rise over time. The assumption that unsold houses older than five to ten years will drop in price is incorrect. "Therefore, existing homes need to be discounted and offered rebates to remain competitive with new housing developments,' he explained. Muhammad Iqmal added that an oversupply of unsold houses could also impact the macroeconomy, as developers who fail to sell enough units risk defaulting on loans, which could affect the financial and banking sectors. - BERNAMA
Malaysia Sun
09-05-2025
- Business
- Malaysia Sun
Malaysia's property transactions fall in Q1
KUALA LUMPUR, May 9 (Xinhua) -- Malaysia's property transaction performance experienced a slight decline, with the volume and value of transactions decreasing 6.2 percent and 8.9 percent year-on-year, respectively, to 97,772 transactions and 51.42 billion ringgit (11.94 billion U.S. dollars), official data showed Friday. The National Property Information Centre and the Valuation and Property Services Department said in a statement that although property transactions began on a slower note, the robust pace of construction activity and the increase of residential launches were supported to balance the property market growth and sustain its positive momentum in 2025. According to the statement, construction activity in Malaysia's residential property subsector recorded significant growth in the first quarter, with the number of completion units surging 30.2 percent year-on-year to 9,329 units, while housing starts rose 32.5 percent to 28,344 units. This encouraging growth indicated a strengthening development trajectory for the residential subsector. The performance of residential overhang recorded a total of 23,515 units valued at 15 billion ringgit, reflecting a marginal increase of 1.6 percent and 7.7 percent in volume and value compared to the previous quarter. The Malaysian House Price Index in the first quarter stood at 225.3 points (an average price of 486,070 ringgit per unit), with an annual growth rate of 0.9 percent. (1 ringgit equals 0.23 U.S. dollars)
New Straits Times
09-05-2025
- Business
- New Straits Times
Property transactions down 6pct in Q1, value drops 9pct
KUALA LUMPUR: Malaysia's property market slipped in the first quarter of 2025, with transaction volume down 6.2 per cent and value down 8.9 per cent, according to the Valuation and Property Services Department (JPPH). Its director general, Abdul Razak Yusak said the total transactions amounted to 97,772, valued at RM51.42 billion, compared to 104,194 transactions worth RM56.47 billion in the same period of 2024. He said although the property transactions began on a slower note, the pace of construction activity and the increase of residential new launches were supported to balance the property market growth and sustain its positive momentum in 2025. "Construction activity in the first quarter of 2025 showed significant growth, with the number of completed residential units rising by 30.2 per cent to 9,329 compared to the first quarter of 2024. "The number of projects that started construction also increased by 32.5 per cent, reaching 28,344 units from 21,391 the previous year," he said during a presentation on the property market broadcast on Facebook today. The number of new residential launches more than doubled to 12,498 units, up from 5,585 units in the same period of 2024, with a sales performance of 10.8 per cent. Abdul Razak said this encouraging growth indicates a strengthening development trajectory for the residential subsector. Meanwhile, the Malaysian House Price Index in 1Q25 stood at 225.3 points, with an average house price of RM486,070 per unit, reflecting an annual growth rate of 0.9 per cent. "All states witnessed moderate positive growth ranging from 0.3 per cent to 6.9 per cent, except for Sabah and Sarawak, which remained stable, while Kuala Lumpur declined by 2.4 per cent," Abdul Razak said. Commenting on the outlook, he said the property market is expected to maintain its resilience, fueled by strong momentum in the construction sector and a continued increase in newly launched residential units. "Although the property market maintains a positive outlook, industry players and property developers are urged to remain attentive to market dynamics, global economic challenges, and an uncertain external environment. "Special financial and infrastructure incentives under the Johor-Singapore Special Economic Zone, the Special Financial Zone in Forest City, Johor, and ongoing infrastructure development are expected to further stimulate long-term growth in the property market," Abdul Razak said.
