Interest rate cut translates into less interest offered by the bank if you are a fix deposit saver in Malaysia. The standard fix deposit rate in Malaysia bank's is 3 percent per annum. Banks offer a higher rate if the capital you deposit is higher, or the tenure you save is longer! With the rate cut news released yesterday, we believe the latest fix deposit rate will be reduced by banks very soon.
We think it is time to allocate some funds into the sharemarket. Our top picks would be Bursa Malaysia- the Stock Exchange of Malaysia which offer high dividend; property companies such as LBS Group, SP Setia and Sunway Group, Reach Energy and Real Estate Investment Trust such as YTL REIT, IGB REIT and Pavilion REIT.
Of course, if you have the ability to borrow from the financial institution and have the ability to pay the mortgage, we think this is an opportunity to hunt for affordable properties. We bought a property few months ago, looking to transform into J&M home and office.
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