MALAYSIA is continuing its trend of steady growth and the real estate sector is emerging as one of the key sectors that significantly boost the foreign direct investment (FDI) in the country. The Malaysian market offers a wide range of investment opportunities for international investors seeking affordable properties with sustainable growth potential in the residential and tourism sectors.

Experts predict a wave of foreign direct investment into the real estate sector this year as the profile of property is raised as a viable and attractive investment commodity. The country allows for the foreign freehold ownership of real estate with an excellent legislative framework in place that is conducive for the attraction of FDI, the Central Bank of Malaysia said recently.
Malaysia is considered as Asia’s hidden gem for investors particularly from the Middle East. Investors are attracted to Malaysian property because the country offers them impressive investment growth potential, an opportunity to dominate the luxury property development landscape, a location where infrastructure is improving, where the investment climate is transparent, and more importantly, where there is access to competitive fund options including Shariah-compliant Islamic finance solutions.
Tourists from the Middle East especially the Arab Gulf countries have long favoured Malaysia as a popular holiday destination and now the investors are flocking to the ‘land of true Asia’ to buy a dream home, invest in a hotel or resort or get a slice of share in the emerging property market.
Meanwhile, the Prime Minister’s office said that foreigners will be allowed to buy residential properties worth more than RM250,000 without approval from the Foreign Investment Committee and there will be no restrictions on usage and the number of units purchased.
The move was aimed at providing a business-friendly environment with speedier approvals.
The next 12 to 18 months should see many projects coming onstream. “The momentum and spillover should be good for 2007 and beyond,” said Second Finance Minister Tan Sri Nor Mohd Yakcop.
Developers welcome the government’s move to relax the rules for foreigners to purchase high-end residential properties in the country.
Real Estate and Housing Developers’ Association Malaysia president Ng Seing Liong said the association appreciated the government’s efforts in encouraging foreign investment in Malaysian residential properties.
“Property developers would also find it easier to market their products outside the country. We hope this move would encourage more foreigners to take up Malaysian homes,” he said.

Brighter outlook

The deputy prime minister advised property developers not to be too materialistic and profit-driven, as they must be able to win the hearts of buyers who are more selective now. He said house buyers now are very particular about the theme and packages. Malaysian contractors expect a brighter year as the government pledged effective project rollouts. The Master Builders Association of Malaysia, representing about 600 contractors nationwide, hopes that the government is keeping a close watch on projects awarded under the 9MP to ensure that they are properly implemented. Construction companies can forecast for better times as the list of 9MP development projects is expected to generate quite a number of opportunities during the next five years.
Malaysia has recently unveiled a $105 billion blueprint to turn the area around its second-largest city, Johor Baru, into a prosperous Asian metropolis, Reuters reported.
Prime Minister Abdullah Ahmad Badawi said the government would set up a central planning body to oversee 20 years worth of projects to transform Johor Baru and its surrounds.
“We mean business,” he told a crowd on city’s foreshore in November last year. “Our vision is to make south Johor the new international address for business, investment, leisure and culture.”
The 2,200-square kilometre development area is to boast a high-tech park, logistics and industrial precincts, educational park, regional hospitals, marina, waterside villas, theme parks and exclusive, gated residential communities.
The government will also create free access zones in certain areas in Johor where visitors from Singapore can live and work. There will be no immigration and customs check for entry into these zones, which will be guarded by surveillance systems and barriers.
Abdullah said investment of $13 billion would be needed in the first five years from 2006-2010 to build roads, rail and other infrastructure required to set the stage for an influx of private investment.
The government estimates $105 billion of investment will be required over 20 years to meet the projected growth target of 8 per cent per annum for the region.

PROJECTS IN 35 COUNTRIES

THE Malaysian construction industry has made remarkable progress in venturing overseas in a wide range of projects such as roads, highways, bridges, buildings, housings, water supply systems, power plants, ports, airports, telecommunication and  transportation systems.
With Malaysia’s vast experience in developing many of its world class infrastructures, the country is now ready to share its success with other countries.
Malaysian companies have ventured abroad, mainly to India and the Middle East, where they have secured projects mainly to construct roads, highways and buildings. They also made their presence felt in many other countries including Bahrain, Bosnia, Cambodia, China, Indonesia, Iran, Myanmar, Philippines, Singapore, Sri Lanka, South Africa, Sudan, Thailand and Vietnam.
Data from the Construction Industry Development Board (CIDB) indicated that Malaysian contractors are currently undertaking 48 projects worth RM15.3 billion in 35 countries, with 293 projects valued at RM18.5 billion already completed.
The rapid economic development in the Middle East particularly in the Gulf countries have spearheaded the growth of promising and exciting opportunities for the Malaysian construction companies. 
According to Dato’ Mubin Razali, Ambassador of Malaysia to the UAE, 40 Malaysian companies are operating in the UAE and several more firms are in the process of registration. They are involved in various sectors of industries, mainly from construction and engineering to services and hotel management.
Some of the major Malaysian companies based in the UAE include KLCC Projeks, IJM Corporation, Peremba Bhd, Sunway Engineering, Tidalmarine Engineering, Eversendai Engineering, Zelan, LFE, PECD, Ranhill, MRCB, LCL Interiors and Alam Flora.
Some of the leading firms are involved in the iconic and signature projects in Dubai and Abu Dhabi which include Burj Dubai, Dubai Marina,  Emirates Flight Catering Centre, Fortune Executive Tower, Dubai International Financial Centre and hotels in Palm Jumeirah.
KLCC Projeks, the company behind the development of the famous Petronas Twin Towers and the Federal Administrative Capital in Putrajaya, is now actively involved in the Middle East mega projects including the Najmat Abu Dhabi and Burj Dubai developments in the UAE, said Country Manager Feisal Ahmad Noor. The comany provides a wide range of services from conception to completion of the project, Noor added.
LCL Interiors has won a major contract to design the interior of The Atlantis Hotel in Palm Jumeirah, Dubai. In Abu Dhabi, a consortium of four Malaysian construction companies won Dh1.33 billion worth of contracts to construct five tower blocks of mix development concept for Tamouh Investment Company on Al Reem |sland. Others are involved in construction sector in Sharjah, Fujairah and Ras Al Khaimah.