Bank Negara formulates new measurement for BLR in 2014
KUALA LUMPUR: Bank Negara Malaysia (BNM) is formulating a new interest rate framework for the measurement of the Base Lending Rate (BLR) next year to further enhance the country's financial system.
Governor Tan Sri Dr Zeti Akhtar Aziz said BNM would issue a consultative paper outlining the new reference rate framework to the industry in early January next year, as it needs to adjust and progress towards better serving the economy.
"Of late, there have been indications that the BLR as a reference rate has become less relevant. "It has therefore become less meaningful as a basis for the pricing of loans. Retail lending rates on new loans being offered by the industry are at a substantial discount to the BLR," she told reporters after the launch of the Asian Banking School here today.

Zetri said the BLR is the key element in the financial intermediation process and needs to be improved in term of its efficiency, for the banking industry to continue to meet the ultimate objectives for its existence. - Bernama
 

Real life scenario... worked for a developer (quite well known) and this is what he say to us (we are the consultants in fact):

"Aiya, build cannot sell no problem one... Contractors and consultants will be 'buyers' on what we built  tak laku lah..."

Already happened to a few of their projects. Last last building contractor yang bankrupt and consultant in debts but developers still developing.

Contrary on popular beliefs, construction materials are actually still cheap just that many were misled with fake news which causes condos to go up to RM1m. Might as well use the 1m to buy a 7k to 10k square feet land and build your own  2k square feet mini bungalow with that spacious land to upgrade or bercucuk tanam man. Really can't brain with those BBB condo craze when you are paying so much for a box and divided land. 

Have to agree that house are for staying not speculating. Nak speculate, speculate la on the shophouses or businesses. Malaysians really many tak takut mati one. 

not sure how much land costs these days, but shops at prime areas go well into the million range.  i'm staying at metroview, wangsa maju and the shoplot downstairs is selling for 5 mil.. crazy expensive

Some people can have a middle man's pay with a few properties in line but I don't see how a RM5k salaryman can live on RM2m loans that was running on rental? If economic downturn siapa yang kena dulu?

I know someone who bought a few shop lot in Rawang many years ago went bankrupt, as the shoplot literally growing grass..lol

What a waste ! Convert them to bird nest breeding home man ! Kakaka.

Is not going to be cheap to convert it and that also no guarantee on return for this investment..some said is depend on your luck...

I thought this thing is already evolved into franchise business surely they have mastered the science of it ???

"Aiya, build cannot sell no problem one... Contractors and consultants will be 'buyers' on what we built  tak laku lah..."

Already happened to a few of their projects. Last last building contractor yang bankrupt and consultant in debts but developers still developing.

Is not going to be cheap to convert it and that also no guarantee on return for this investment..some said is depend on your luck...

They say when u are ong / lucky only , birds will come to you. No luck, can't attract 'bird' lah!  Cerita Benar.

They say when u are ong / lucky only , birds will come to you. No luck, can't attract 'bird' lah!  Cerita Benar.

I only attract girls.. not bird

I only attract girls.. not bird

How much profit are you looking at?

now contractors smart oledi, they ask for "progressive payment" according to the % completion ... No?