China is reportedly clamping down on underground banks through which its citizens are sending money to buy homes abroad in places like Australia, creating havoc in some overseas property markets.
Demand from China for apartments in Sydney has now reportedly fallen, according to The Australian:
The Chinese citizens sending money to Australia are scared that China’s banks and/or the currency will collapse so go to incredible lengths to get money out of China and into “safe havens” like Australian and Canadian real estate.
But the Chinese money exit clamps are becoming more successful and we have seen a big fall in Chinese demand for Sydney apartments…
Bloomberg reports that the “Chinese are limited by rules that allow them to convert only $50,000 per person a year”. So how do Chinese citizens side-step these exit controls?
The methods include China’s underground banks, transfers using Hong Kong money changers, carrying cash over borders and pooling the quotas of family and friends — a practice known as “smurfing.” The transfers exist in a gray area of cross-border legality: What’s perfectly legitimate in another country can contravene the law in China.
“It’s not legal for people to use secret channels to move money abroad, because this is smuggling,” says Xi Junyang, a finance professor at Shanghai University of Finance & Economics. “But the government has kept a laissez-faire attitude until recently.”
Now, policy makers are starting to take the outflow seriously. While it’s not about to run out of money, China has intensified a crackdown on underground banks that illegally channel cash abroad. It’s also trying to capture officials suspected of fleeing overseas with government funds.
Bloomberg outlines the techniques that are being used to get money out of the country. But what happens when the exit clamps grow tighter? How will that affect property prices abroad that were previously buoyed by interest from Chinese citizens?
There was a time when property development in Malaysia was for local buyers, seeking local homes. Restrictions on foreign ownership, Capital Gains Tax, and shorter bank loan repayment periods helped keep a lid on prices and speculation. As a result, property prices were more stable and homes more affordable for local buyers.
But obviously this is no longer the case, not helped by quantitative easing, speculation, longer loan repayment periods, and an almost free-for-all in the property sector.
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China is making “unequal ” treaties with tinpot democracies in the somewhat same way Europeans did with China long ago. History repeats itself with a twist. Malaysia may be going to a kind of loan shark. Malaysia may be trading its sovereignty for loans from China so that Malaysia’s leaders may continue with their money laundering with taxpayers money. Malaysia is on fire sale, no thanks to a PM who is desperately trying to save his own skin then to give a hoot to the suffering of the rest of us. And China is the country that has excess cash,… Read more »
Kluang MP Liew Chin Tong said that PM Najib and Liow must inform Malaysians whether the RM200 billion Carey Island Port project would be entirely funded by private investors from China or involve allocation of government funds.
“Who pays for what is an important question. RM 200 billion is a lot of money for Malaysians of multiple generations to pay if the proposed project fails like the Port Klang Free Zone,” said Liew, who noted that the federal budget for 2017 is RM260 billion.
When Najib approached China for more investment, China saw this as a good opportunity to cement a relationship with a key Southeast Asian country. But China is also being criticised for investing too much into the relationship with Najib and his allies, to the extent that the Sino-Malaysia relationship now seems to be based on, and driven by, Najib’s personal agenda. Any threat to the prime ministership of Najib could therefore become a threat to Sino-Malaysian ties. There is a real risk that Chinese investment projects could be suspended or delayed if Najib is forced out of power or if… Read more »
China is no different from your neighborhood Ah Long.
Borrow now and suffer later when payback is due.
China will soon populate nusantara zone with Han people like it did at Xinjiang and Tibet. Now you know Forest City is just part of the plan.
China studied the history and knew how the Sultan gave up Singapura to Raffles of British. Country Garden is the China’s version of British India company!
China may be eyeing Nusantara Malaya (sans SingLand) as their nearest ports of call for rapid deployment of long range submarines & aircraft-missile launching carriers & drones. Logistics for her Air Force & Navy has never been more important & strategic in enforcing her might + historic claims over the Spratly Islands & South China Sea. In the event of a sea blockade by US Navy that may lead to a confrontation in the Spratly, China would need to have instant access to fuel & other logistic supplies to support her military stand off over a period of time &… Read more »
If you watch the movie Arrival, General Shang of China was reminded that ‘In War, there is no winner, only widows’. An advice to be heeded by all.
Zimbabwe settled the chinese debt (payment for military uniforms) with their wildlife.
http://www.thetimes.co.uk/article/zimbabwark-to-settle-mugabe-debt-vww9ctqrb
Do not be surprised if we have to pay the chinese debt with our Orang Utan, Malayan Tigers or Tapirs in the near future.
From loan provider to pawnshop – this is PRC With Lending Money Can Do Anything.
Now you know why we call political traders of anything that can be pawned if cannot service bad loans.
Not forgetting rich China TaiTai allegedly come to Penang….
Bandar Malaysia has been pawned for the PRC’s loan? Maybe it could be renamed Bandar Mao down the road?
(Could) the PRC developers … soon extend their claws towards the Malay enclaves in KL…?
China’s debt trap diplomacy http://www.malaysiakini.com/news/370660 COMMENT If there is one thing at which China’s leaders truly excel, it is the use of economic tools to advance their country’s geostrategic interests. Through its US$1 trillion ‘one belt, one road’ initiative, China is supporting infrastructure projects in strategically located developing countries, often by extending huge loans to their governments. As a result, countries are becoming ensnared in a debt trap that leaves them vulnerable to China’s influence. Of course, extending loans for infrastructure projects is not inherently bad. But the projects that China is supporting are often intended not to support the… Read more »
Chin Peng should be very happy now. His dream of establishing a “Communist Party of Malaya/sia” is (allegedly) finally coming to reality. It is high time for BN to allow his remains to be buried in Sitiawan, Perak, or possibly in Forest City?
Certain Penang folks will vote for LGE administration in state election but will continue to give their votes to Najib BN in parliamentary seats in order to ‘maintain stability’ (MCA calling card). Is this not very selfish?
Anyway I see nothing wrong if Mukhriz and LKS have ambition to be PM and DPM respectively. This is better than the spineless MCA that is made to be satisfied with 3 minister posts so long as they can land the government contracts for their key cronies members.
Not selfish but ‘Boh Chai See’.
TI-M: All politicians corrupt, so choose the less corrupt http://www.malaysiakini.com/news/370469 Transparency International Malaysia (TI-M) has asked Malaysians to choose between the lesser of two evils in the upcoming general election. Acknowledging that it is difficult to find politicians who are not corrupt, TI-M president Akhbar Satar said voters should cast their ballots for those who are considered to be “less corrupt”. So anilnetto.com is not out of mind to bring out contentious issues, some of which can cause instant knee-jerks & bruised egos among the diehards of overt-political worshipping. You have 3 choices: vote for the absolute evil or vote… Read more »
Malaysia scored 49/100 in the latest CPI, a one-point drop from last year’s score of 50, leaving it on par with Croatia. The latest CPI ranked Malaysia at the 55th spot among 176 countries surveyed. It was ranked at no. 54 in 2015. On the CPI scale, zero is perceived to be highly corrupt, while 100 is perceived to be very clean.
No improvement since MACC is powerless against the mother of all corruption 1MDB.
The choice is clear: ABU!
Umno’s claims of innocence on corrupted practices could be believed provided there is freedom to investigate so that evidence could be presented in court and thereby tried and declared guilty or innocent. In this instance if a holder of high public office has had his or her PERSONAL bank account infused with billions of dollars and other countries of the world through their own investigations have seen it fit to prepare to try such cases in court, isn’t it baffling to say the least that none of this is deemed necessary in our own country? So the proclamation by Ku… Read more »
From Mahathir’s perspective – and that of other Malay politicians from the anti-Najib camp – the Forest City project was a political godsend. Mahathir hopes that by playing on fears that Najib is selling Malaysia’s sovereignty (or simply Malay land to China), and suggesting the country is becoming a satellite state of Beijing, he can gain traction with the largely conservative rural Malay support base in Johor and beyond. Mahathir has also peddled the alarmist view that Malaysia will be overrun by an influx of Chinese workers and residents who will unbalance Malaysia’s constitutionally enshrined ethnic quotas. A sizeable portion… Read more »
I believe most Johoreans particularly the Malays are ignorant about the social impact of Forest City until now. But they must first question the validity of the ambiguous concept of Bangsa Johor and how it could accommodate the influx of foreigners who buy those expensive properties, freebies or leasehold, that the locals can ill afford.
Daulat Tuanku!
Why Mahathir takes on Sultan Johor from Singapore perspective :
http://m.todayonline.com/commentary/real-reason-dr-m-taking-sultan-johor
AMPANG, 23 JAN: Di saat orang Melayu negara ini ditakutkan dengan dengan ‘kaum Cina’ kononnya akan menguasai Malaysia, pada masa yang sama, kedaulatan negara terus tergadai kepada syarikat dari negara China. Menurut Presiden Parti Amanah Negara (AMANAH), Mohamad Sabu, propaganda menakut-nakutkan orang Melayu seperti itu sengaja dibiarkan berleluasa supaya kaum Melayu tidak mengubah undi pada pilihan raya umum akan datang lapor Malaysiadateline. “Kita lihat di media sosial (serangan) bertubi-tubi, jangan diizinkan DAP perintah Malaysia. Nanti Cina akan kuasai kita. Di kuliah-kuliah masjid seluruh negara seolah-olah tanpa sekatan dimainkan isu perkauman ini. “Jangan jadi macam Singapura. Lihat Cina memerintah, masjid pun… Read more »
I object all foreigners from moving into Penang, that’s all !
More foreigners in Penang can encourage marriages with locals to produce supergene children to cope in Penang Island which is now driven to become an international city by present administration.
Gentrification of local genes? No joke!
Selective genetic preoccupation is no different from racist discrimination.
God is sad!
Please be fair to those foreign spouses married by Penangites.
No foreigners in Penang then who shall help to remove your garbage daily?
Locals are also willing to do this with the help of modern equipment if they are paid a decent wage. See for example the MPSP which reversed its policy of privatisation of rubbish collection in 2014 and then hired 1,800 new workers.
http://anilnetto.com/governance/accountability/mpsp-takes-rubbish-collection-terminates-private-contractors/
This is thinking out of the box instead of addiction to foreign workers with simple manual skills paid measly by those who have no brains to upgrade work system so as to maxi-profit.
Too many degree mills in Malaysia such that everyone can earn a degree with money. Like that hard to find new generation willing to undertake laborious jobs.
Importing foreign labour is one way of making easy money by the cronied contractors.
Dwindling Chinese population bodes ill for nation and economy, analysts say https://sg.news.yahoo.com/dwindling-chinese-population-bodes-ill-nation-economy-analysts-225700486.html KUALA LUMPUR, Jan 23 ― The trend of ethnic Chinese emigration from Malaysia will result in a smaller private sector, less tax monies for the government and a reduced professional workforce, political analysts said. They also expressed concern over whether demographic changes would be manipulated to reinforce racial and political dominance as well as possible hazards to minority rights if the country’s ethnic composition shifts towards any single community. “The Chinese community is known to be very enterprising and economically vibrant,” independent analyst Khoo Kay Peng told Malay… Read more »
You must encourage your children to bear more grandchildren for you, with the promise that as grandparents you and your wife will help to take care of them while they go to work. Also during your nurturing, make sure your grandkids speak Hokkien as they can speak English with your children and learn Bahasa n Mandarin in schools.
If you want Chinese to bear more children, pls ask gomen to intervene sky-high surreal property prices which are eating away incomes & also ask for incentives like free education (primary to tertiary), free maternity benefits, free bas sekolah, etc. Also, to follow Lee Kuan Yew’s incentives to married couples for bearing more children than 1.
Then, only then will more Malaysian Chinese start get busy after working hours like those in the kampongs!
Why suddenly you agree with LKY’s strategy?
You are seriously out of date if you still subscribe to Senior Bush’s “You’re either with us, or against us”.
Where is Absolut Fencing when it comes to politics?
Go ask Lim Kit Siang, the father of your Idol!
Why not advise the Chinese to live in MCA’s new villages in rural areas where housing is cheap, have many kids as cheap labour to help you grow vegetables and fruits like good old day?
If MCA could do that, no need for DAP to sing affordable housing to boost vote-bank frenzies! Pls don’t talk fantasies!
Self-contradictory when you say new generation shuns hard labor under the sun.
More like having many kids for purpose of self-indulgence with no responsibility & financial acumen!
Why has it to be property development to spearhead development & progress (for state or nation)? Is it for demand of foreigners, so to say they will create / bring jobs to our shores? Or is it so capital intensive so as to show a multi-billion Ringgit FDI in the nation’s balance scorecard? Or is it b’cos advertising revenue from property fairs + ads is the main rice bowl of publishing houses? Are we thinking of long-term implications : foreigner landlords determining costs of doing business in Malaysia (e.g. high cost of local rentals which are most likely repatriated to… Read more »
Wong Chun Wai today on Sunday Star urged Malaysians to ‘think forward’ to welcome China’s investment in property development, and endorsed the Forest City reclamation project to bring tourism and jobs to Malaysia.
http://www.thestar.com.my/opinion/columnists/on-the-beat/2017/01/22/lets-think-forward-people-playing-the-race-card-and-bashing-one-of-our-biggest-economic-partners-ch/
Wong wrote:
Today’s Chinese buyers are affluent and well-heeled. They would probably have similar investments in other countries especially Britain and Australia. They are not the types arriving in boats like the ancestors of the Malaysian Chinese and for sure, they don’t need our Malaysian passports or to look for jobs here.
Less controversy for Penang if the developers are from PRC instead of the local players like Ideal and Ivory?
Less controversy?
More likely less sound-sleep when any condo built by PRC workers can collapse with the slightest rumbling of the Ring Of Fire volcanoes!
Malaysia’s PM Najib Razak said Johor’s massive Forest City development can help the transformation of the southern state, like Dubai, which built giant property projects to attract investors. And he said the criticisms by former premier Mahathir Mohamad that Malaysia was throwing away its sovereignty by selling Johor land and housing units to companies from China and their buyers are slander, as the projects are sold on 99-year leases. “Today Dubai has become a great metropolis and its people earn high incomes. If Dubai can succeed, we too can develop land,” he said in a speech at an event in… Read more »
The economic activities in the Iskandar zone is primarily due to the high number of Malaysians converging in Johor Bahru, as a base camp to work daily in Singapore and bring in the earned Singapore dollar to generate the multiplier effect in the economy of the state of Johor with their purchading power. But BN can tell the world that Iskandar zone has created jobs for Johorians.
Dubai property prices drop for sixth consecutive quarter http://gulfbusiness.com/dubai-property-prices-drop-sixth-consecutive-quarter/ Residential property prices in Dubai fell for the sixth consecutive quarter during Q2 2016, as the market continues to witness a slowdown, according to the latest report by real estate consultancy CBRE. Average sales rates dropped 2 per cent quarter-on-quarter and 12 per cent year-on-year, with higher-end and luxury residences witnessing the most significant drops. “Prices within the mid-market segment have proven to be far more resilient to this downward rate trend, reflecting the current demand for affordable accommodation in freehold communities,” the report said. However, even the mid-market segment saw… Read more »
Go to Dubai and see for yourself.
Are the locals there really the ones that are wealthy?
Are the locals able to share the wealth generated by foreign investors?
Or are the foreigners the ones that are benefiting from the liberalisation of their economy?
What about the elite and high social class? Are they exploiting the lower socials groups?
Last night live on TV3 and Awani Najib and KJ tried to sell TN50 snake oil to the young generation, promising sustainable development.
BN has failed to achieve Wawasan 2020, now seeking another 30 years from us? Time for change.
TN50 will further depreciate our Ringgit.
Just look at the track record of Umno BN.
Even when if there is no corruption in 1MDB as claimed by BN, the fact that Najib has lost so much money (hundreds of billions) in his 1MDB venture is enough reason for him to admit failure and resign voluntarily.
China not only buying condos in Penang, and if you Macalister Road durian truck opposite UMNO building you can notice young China tourists can afford RM75/kg mustang king or RM78/kg black thorn durians. Buy buy buy just to take Selfie photos.
What has happened to vision 2020 M? Catch up or sore loser?
If Chinaman can buy 75/kg luilan, then pg Chinaman must be rich.
Different class of durian for different class of people, according to prices?
Buy one property in China and get one unit free in Johor Bahru.
This is how the Chinese developers are capitalising on the building frenzy in Iskandar, as a means for the ORC folks to move their money abroad with ease.
Dr M says not against Chinese but mass immigration, cites Trump’s wall http://www.malaysiakini.com/news/369993 Former prime minister Dr Mahathir Mohamad today rebutted accusations that he was anti-Chinese for criticising China’s purchase of land in Malaysia. “I categorically welcome foreign direct investment (FDI) from China as I welcome FDIs from any country. What I object to is the kind of FDI from China. “It is not about investing in manufacturing industries in Malaysia. It is about acquiring land in Malaysia, building settlements, towns and cities, which are to be sold to mainland Chinese who will come and live here. “It is this… Read more »
Local folks live in PR1MA, will work as servants entertaining the rich foreigners living on expensive condominiums. Is that what Bangsa Johor want?
That may be the future for Bangsa Johor, you get what you asked for!…
On the Malaysian front: Suicide to buy a house now, says consultant (an honest down to earth consultant) http://www.freemalaysiatoday.com/category/nation/2017/01/19/suicide-to-buy-a-house-now-says-consultant/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+FreeMalaysiaToday+%28FMT+News%29 PETALING JAYA: A property consultant has advised prospective house buyers to wait until property prices come down, saying making a purchase at current prices and in the face of a bleak economic outlook would be like committing suicide. Ernest Cheong, who has been a chartered property surveyor and consultant for more than 40 years, said the property market does not exist in isolation and people needed to pay attention to the local and global economic situation. He advised the public to… Read more »
Copy and paste
If we still think globalisation is all gold, we will be in for disappointment. Look at Brexit, American elected President Trump, & more to come of national self-preservation. Call it inward-looking, protectionist, even nationalism. The game of globalism is not creating an Utopia as it once claimed to offer. In fact, it created disruptions of economies & currencies, allowed pervious spread of terrorism thro’ immigrants, eroded fair incomes, made the wealthiest 8 individuals far more wealthier than ever, widened income disparity, worsen the environment. An era of post-globalisation will come. It’s anybody’s guess what direction & changes it will take.… Read more »
Thanks should go to Newtown. For every action there is always equal and opposite reaction. Bark and someone react back
Mahathir articulates what we, too, fear http://www.malaysiakini.com/news/369748 Raja Chulan: I have read the full text of Dr M’s speech he made during the launch of Bersatu. Dr Mahathir has articulated his thoughts very well based on our own history and the world. He is old, very experienced and very wise. His speech enumerates the many problems Malaysians are faced with presently and gives his opinion and advice accordingly. It is his advice to all Malaysians, both the Malays and the non-Malays. I did not see any racial or political spin or vested interest in that speech. In fact, as a… Read more »
Ringgit no value globally hence properties fall cheap to foreigners with stronger currencies.
Don’t blame these nations. Look inwards and wake up who causes Barang Naik?
There are needed measures to curb foreign ‘take-over’ of our nation.
Is it foolhardy to do so?
Or we are still drown in sorrows incapacitated in a cheapo Ringgit b’cos of an inward malaise?
Letting the free market a free rein in an already sorrowful state is not the way forward.
Unless one prepares to be sorrowful beggars.
Wake up call from Mahathir that Tanah Melayu could soon fall into the hand of the PRC communists, given the high number of China developers operating in Iskandar?
Man of Elvis era and kerata lembu. Gyrate and love to spin gasing. Ringgit is bigger than Bullock cart wheel
Pls try harder! Otherwise, wasting precious time which could have earn more Komtar Dedak!
The TN50 generation will be paying interests of the massive borrowing and debt of this country. Najib aka MO1 must be living in his own bubble while the rest of the world can see the 1MDB meltdown. So it is quite sickening to see the Dialog Perdana TN50 where MO1 and his youth partner are trying to fool the young generation of Malaysia.
Only gullibles will believe in the exhilarating stories of Ali Baba & The 40 Thieves!
How nice to be robbed of a future!
The young audience at the live session of Dialog Perdana TN50 could have been pre-selected and fed with dedak in order to make Najib and KJ look good on TV to fool the kampung folks. Wonder why those student activists are not invited.
Only dedak twist the pelvis like Elvis and spin gasing
Globalisation or Nationalism?
Capitalism or Socialism?
Liberal or Conservative?
Free market or protectionism?
Maybe the answer lies somewhere in between…everyone has a view.
Well sometimes, ignorance is bliss…
If such activities being curbed, many condo developers in Penang with world vision may get into serious cash flow problems.
Not only Penang, but also Johor. Can’t seem to learn from Dubai!
Also result in unemployment. Gleeing to see happy days are here again?
Hey, btw, where is your Komtar Dedak Addict, a part of your 2-in-1 trolls?
Give up so easily ah?
dedak cant reply properly instead thinking back of elvis era spinning the pelvis and tops main gasing.
Can’t give a good reply? Typical troll!