10 Reasons Why Malaysia is Your Preferred Property Investment Destination

Tabung Haji said to be buyer of Naza building

Tabung Haji is believed to be the buyer of a multi-storey tower in the heart of Kuala Lumpur that will be built by Naza TTDI Sdn Bhd.
A source said that Tabung Haji had purchased the 30-storey building, located at the RM4.1 billion integrated upmarket commercial and residential property project known as Platinum Park.It would be the second property in the project that Naza TTDI has sold, after last year's RM640.7 million deal with plantation group Felda for a 50-storey tower."I don't know whether Tabung Haji will move its headquarters to the new building or whether it bought for investment purposes," the source told Business Times. Tabung Haji has declined to comment.In an interview with Business Times recently, Naza TTDI group managing director SM Faliq SM Nasamuddin said that a 30-storey building had been sold to a government-linked company. He did not reveal the buyer."This tower together with two other towers is scheduled for completion within five years," the source said.Naza Group of Companies joint executive chairman SM Nasarudin SM Nasimuddin, when met at a function in Kuala Lumpur yesterday, declined to reveal the buyer of the third tower at Platinum Park."It has already been sold, but I am not about to reveal who the buyer is," he said after witnessing the signing of an agreement between Naza Group and Well Spring Inc in Kuala Lumpur.Naza has been given a master licence by the US-based company to operate "Tutti Frutti" frozen yogurt outlets in the country.Work has started on the Felda building as well as the 50-storey building which will house Naza Group's headquarters.Platinum Park, developed by Naza TTDI, is in the vicinity of the Petronas Twin Towers and the Suria KLCC shopping centre.It is set to be the single largest luxury project undertaken by a Bumiputera company in the heart of Kuala Lumpur.There will be seven buildings at Platinum Park.Naza TTDI is the property arm of the Naza group. Founded by the late Tan Sri Nasimuddin SM Amin, the group was better known as a motoring company before it bought over TTDI from Danaharta in 2004.

Make Malaysia A Choice Property Destinations

PRIME Minister Datuk Seri Najib TunRazak has urged property players to give more emphasis to the identity, function and sustainability of their projects to make Malaysia a preferred destination for real estate. He said the reputation of local properties for quality should be reinforced through promoting a Malaysian identity. "We should not have a skyline which is indistinguishable from any other city in the world," he said at the official launch of the Malaysia Property Incorporated (MPI) in Kuala Lumpur today. "We are proud that our iconic buildings like the Petronas Twin Towers and Menara Dayabumi have Malaysian and Asian aesthetics," he said in his speech which was read by Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop. Najib said Malaysian properties should be truly functional to meet the needs of its users while understanding and taking into account, local factors such as weather and the culture. "A focus on function means that a property should not be just a physical structure of brick and mortar but one which truly supports the activities and lifestyle of its users. "At the same time, it must be well integrated into the surrounding community," he added. When it comes to sustainability, he said the government was focused on promoting the use of green technology, which also includes encouraging the development of energy efficient buildings.

Properties need Malaysian flavour

Local property players should place more emphasis on giving their products a Malaysian identity to ensure quality goods.
Prime Minister Datuk Seri Najib Tun Razak said imbuing local properties with the Malaysian flavour would help reinforce the country’s reputation for quality.
“The pursuit and promotion of quality Malaysian properties is another piece of the jigsaw that supports enhancing our cities as economic centres,” he said in his speech, which was read by Minister in Prime Minister’s Department Tan Sri Nor Mohamed Yakcop, at the launch of Malaysia Property Incorporated here yesterday.
He said the pursuit of quality required rigorous attention to detail and the needs of consumers, even to the level of ensuring that the design of the lavatories would make them easier to be maintained and kept clean.
Najib said Malaysian properties must also be truly functional and take into consideration local factors, such as the weather and culture.
“A focus on function means that a property is not just a physical structure of brick and mortar but a structure which truly supports one’s activities and lifestyle and, at the same time, is well integrated into the surrounding community.
“The combination of strong identity, functionality and sustainability will no doubt augur well to reinforce Malaysia’s property proposition,” he said.
Najib said Malaysia provided value for money to foreign investors, offering high-end properties supported by world-class infrastructure and connectivity at relatively affordable prices.
Later, Nor Mohamed told reporters that the Economic Planning Unit’s study to find solutions to the issue of toll increases every three years was on track and that the results would be announced soon.
“It will be in due course. It will not be too long from now,” he said.
The Government had deferred the toll rate increase for five highways, which was scheduled to take place on March 1, resulting in it having to fork out RM287mil in compensation to the toll concessionaires.

Malaysia to be made property hub

RM50mil grant each from Govt and private sector for promos

THE Government, through one of its public/private sector initiatives, will be rolling out plans to make Malaysia an international property destination.

Datuk Seri Effendi Norwawi, Minister in the Prime Minister's Department, told StarBiz: “The idea is to make Malaysia a destination for foreigners to buy properties. Property prices here are so much cheaper than in places such as London and Singapore. We should show that we have real value for money.''

A matching grant of RM50mil each between the Government and private sector is likely to be introduced for international promotions.

“We should go out to the world with our best projects,'' he said. “In this respect, we are careful with the kind of properties and developers we promote.

A bungalow in Mont Kiara. Property prices here are so much cheaper than in places such as London and Singapore

“We do not want cases where investors buy properties they are not satisfied with, as these will give us a bad reputation. Self-regulation is important to maintain our image,'' he stressed.

Under the plan which is expected to be implemented soon, Malaysia's premier properties will be showcased at exhibitions overseas, with targeted markets in the Middle East, South Korea and Japan.

“We've been having dialogues with Fiabci and the Real Estate Housing Developers Association (Rehda) on the ways to reform the property sector,'' he said.

The Government has taken heed to the recommendations from the private sector and liberalised many areas in the property sector, the latest being the waiver on real property gains tax. “We are now ready to take on the challenge worldwide,'' Effendi said.

The Government's international marketing plan will be coordinated with Fiabci and Rehda.

Among others, real estate agents will be the ambassadors to tell the Malaysian property story. In this respect, their skills and professionalism will be further enhanced to ensure that the message gets across effectively and foreign investors are impressed.

“Our integrated efforts will include pushing the Malaysia My Second Home programme as well as health and ecotourism. There will be no more excuses this time,'' he said.

“We talk to Rehda and have a wonderful working relationship with them. They have brought many of the issues to the National Implementation Taskforce and we have freed all the restrictions.

“We are optimistic that this plan will work because many of our properties are so undervalued,'' he said.

However, he is aware that the speculative element would be something to watch out for. “We ought to be watching this carefully and be prepared to deal with it.

“But our main priority now is to get the promotions going. There is still quite a large property overhang and we have to release it,'' he said.

The first batch of properties to be showcased will probably be those located in the Klang Valley, followed by those in the Iskandar Development Region and Penang.

Malaysia’s first international theme park set to boost tourism sector

Some 5,000 jobs are expected to be created with the establishment of the Legoland Theme Park in Iskandar Malaysia.

Iskandar Investment Bhd chairman Tan Sri Azman Mokhtar said that job opportunities would be available during various phases of the project in the next five years.
‘Play well’: Jakobsen and Lego characters in Johor Baru yesterday.

Theme parks have a proven track record of attracting a large volume of visitors.

Legoland would be Malaysia’s first international theme park, he said, adding that tourism was one of nine key economic pillars under Iskandar Malaysia’s comprehensive development plan.

The Lego Group started humbly in the workshop of a Danish carpenter Ole Kirk Christiansen. The word, lego, is an acronym of the Danish words ‘leg’ and ‘godt’ meaning “play well”.

Legoland parks are based on the popular Lego toy construction game.

The first Legoland Park was opened in Billund, Denmark, in 1968 with three more parks in London, California and Germany.

Legoland Parks managing director John Jakobsen said Legoland Malaysia Park would be the only one to operate throughout the year, unlike the others which close for winter.

The RM750mil park, on a 930ha site in Medini Iskandar, will have more than 40 interactive rides, shows and attractions when it opens in 2013. Another Legoland is expected to open in Dubai in 2011.

Property in Malaysia

Reasons to invest or live in Malaysia
One of the main advantages of investing in Malaysia property is the fact that real estate laws protect Malaysians and foreigners in equal measure. Foreigners may purchase properties with a minimum value of RM250,000 (USD75,000) and may own multiple properties in freehold or leasehold, depending on the land tenure in question. Property laws are based on British law.

With the introduction of the Malaysia My Second Home (MM2H) programme, the decision to invest in Malaysia is effortless, and is open to all non Malaysians looking to live permanently in Malaysia or simply come for well deserved holidays.

Applying to invest or live in Malaysia
MM2H applicants must first apply for a conditional approval letter which is issued by the country’s Immigration Department. Documentation proving your financial situation is also required.

Financial requirements for those BELOW 50 years of age

• Open a fixed deposit account of RM300,000
• After one year, you may withdraw up to RM150,000 for approved expenses such as purchasing property, medical expenses or your children’s education in Malaysia.
• From the second year, you must maintain a minimum balance of RM150,000 in the account, which must be maintained throughout your stay in the country.

Financial requirements for those ABOVE 50 years of age

• A choice of either putting RM150,000 into a fixed deposit account or show proof of a government-approved monthly off-shore income of a minimum of RM10,000.
• After one year, you may withdraw up to RM50,000 for approved expenses such as purchasing property, medical expenses or your children’s education in Malaysia.
• From the second year, you must maintain a minimum balance of RM100,000 in the account, which must be maintained throughout your stay in the country.

Living in Malaysia
Great weather. Malaysia enjoys a truly tropical climate with warm days and cooler nights. The average temperature during the day is 27°C.

Political stability. Malaysia is a constitutional monarchy with a system of parliamentary democracy, and has enjoyed political stability since independence in 1957. The rule of law follows the British system of justice with an independent judiciary.

Low crime rate. With a relatively low crime rate, Malaysia is considered to be one of the safest countries in the region, making it ideal to raise children.

High standard of living. While the cost of living well in Malaysia is comparatively lower than most developing countries, the standard of living is high. Overall, spending power has progressively improved.

Medical facilities. World class medical facilities and care is available at a reasonable cost and the country is gaining a reputation for being the top healthcare hub in the region.

Accessibility and infrastructure. Every major city has an airport and train station. Islands can be flown to or have regular ferry / boat services. Landmark developments include KLIA (Kuala Lumpur International Airport), Cyberjaya, Putrajaya and the MSC (Multimedia Super Corridor).

English speaking. The national language is Malay (Bahasa Melayu) and English is widely spoken and considered to be the country’s second language.

Education. Pre-school through to university with a choice of either public or private, are available. There is a variety of international schools including British, Australian, American and French amongst others, systems of education.

Property transactions expected to increase

The recent relaxation of the FIC rules is expected to spur demand for residential and commercial property financing.

PETALING JAYA: Bank earnings and loans growth are likely to improve towards the end of the year, bolstered by the recent deregulation of the Foreign Investment Committee (FIC) guidelines on properties as well as easing conditions for new listings and fund-raising activities.

According to a foreign brokerage, property transactions, both residential and commercial, are expected to increase following the relaxation of the FIC rules, which should spur demand for property financing.

Higher property financing would lead to a turnaround in loans growth by year’s end or early next year, it said, noting that property financing comprised 36.4% of total loans in the banking system.

“The policy changes will create more revenue streams for Malaysia’s financial sector and reduce dependency on pure interest income,” the foreign research house said, adding that loans growth in May was underpinned by the relatively stable household loans segment, which grew 8.4% year-on-year.

In addition, the liberalisation would also encourage more mergers and acquisitions (M&As), as well as more capital and equity market activities, which would benefit investment banks, it said. With greater foreign ownership allowed in stockbrokers, product innovation – such as the roll-out of more varied derivative products – is likely to improve.

The foreign research house added that Malaysia’s capital market was expected to gain better access to capital and investments with the removal of the 30% bumiputra equity requirement, making it more attractive for foreign listings while supporting existing listed companies seeking to raise funds.

A local bank-backed brokerage said residential mortgages showed “no signs of weakening” as they sustained 10% growth from December 2008 to May 2009 despite the gloomy economic landscape.

This was due to progressive release of housing loans approved in the past one to two years, high savings rate of Malaysians, sustainable property transactions thanks to limited speculation, low interest rates and attractive schemes by developers, it said.

Moreover, there could be more corporate deals in the pipeline, including new listings and M&A transactions on the back of improved average daily trading value on Bursa Malaysia, it said.

This would augur well for investment banking income, including brokerage and corporate advisory fees, the research house added.

HwangDBS Vickers Research, meanwhile, said the liberalisation was “very bold measures” to improve the competitiveness of Malaysia’s properties internationally.

“The biggest winners will be developers with large exposure to the more ‘open’ districts like the Federal Territory and Penang, where the authorities would likely be supportive,” it said.