Property In Malaysia

 

Malaysia Property Investment

 

Property in Malaysia

Whilst Malaysia has long been recognised as a premier holiday destination, the past couple of years have seen increasing interest from international property investors, who are keen to capitalise on the favourable investment conditions that can be found throughout the region. Government initiatives and pro-investment legislation, coupled with strong growth in tourism and a relatively weak currency have resulted in an expansion of investment in property in Malaysia.

 

Whilst all the factors are worthy of consideration, the key attraction of Malaysia is undoubtedly the rapidly expanding economy in the country. Modern day Malaysia is seen as one of Asia’s most progressive markets and is experiencing impressive year on year GDP growth figures. Following on from the governments ‘Ninth Plan’ initiative, Malaysia has undertaken a considerable investment in its infrastructure and economy, which has led to impressive results throughout their economy and tourism sectors. Understandably, these impressive growth levels have resulted in an increase in interest from overseas investors, keen to capitalise on the large potential for growth in the country.

 

As well as the improvements in infrastructure and economy, the Ninth Plan also laid the foundations for changes in foreign ownership legislation in Malaysia. Distancing itself from the more traditional and complicated East Asian property ownership models, Malaysia now offers the more appealing option of 100% freehold on property. This relaxing of the foreign ownership legislation, coupled with the introduction of various tax incentives for investors was undoubtedly a key turning point in the Malaysian property market, and resulted in large scale interest from international investors. 

 

The second major factor affecting the level of investment in property in Malaysia is the strong market for tourism in the region, which has grown from just over 10 million in 2003, to nearly 21 million in 2007 (Source: Tourism Malaysia). This increase in tourism resulted in over 46,070 million ringgits in tourist revenue, up from just 20 million ringgits in 2003. Understandably, this increase in visitors to the region has resulted in an increased demand for property in the popular resort areas in Malaysia, as investors have looked to tap into the lucrative short term holiday rental market.

 

The final factor affecting the level of investment in property in Malaysia is the relative value of the currency, the ringgit (RM) against the major currencies such as the Dollar, the Euro and Sterling. The relative strength of major currencies against the RM has ensured that investment in property in Malaysia is a relatively cheap option for many overseas investors.

 

Looking at all of the above factors, whilst also taking into consideration the increasing levels of investment in Malaysia from markets including China and India, it is easy to see why many investors are being to look favourably on the market for property in Malaysia. With new, high-end resorts being launched on a regular basis, the opportunities for property investment in Malaysia are gradually becoming more accessible and it is understandable why more investors are looking to put their money into property in Malaysia.