Positive Developments for Property in Malaysia

The general news from the property market in Malaysia at this time is very positive indeed; it points towards a sector whose participants are geared and committed toward the positive development of property in Malaysia as an internationally attractive investment commodity.

The first positive development for property in Malaysia could result from the fact that there is wide speculation locally that the forthcoming budget in Malaysia will strip down the withholding tax currently imposed upon foreign investors into Malaysian based Real Estate Investment Trusts which would likely create a resurgence of interest in the investment commodities from overseas. 

Currently withholding tax in Malaysia for foreign REITs investors is 28% - this is seen as restricting interest and being a direct contributor to the fact that there are many housing and commercial units in Malaysia that remain unsold.  Certain analysts have an incredibly positive outlook and believe that the withholding tax for foreigners will be abolished which would make Malaysia an even more attractive REITs country than Singapore – others believe that the tax will be reduced to make the market at least as competitive as Singapore’s.

REITs are key to the attraction of sustained and significant foreign direct investment interest to the property market in Malaysia.

The next piece of positive news from Malaysia is that Dubai has aligned itself strategically with Malaysia in the arena of Islamic funding for property.  Yesterday in Kuala Lumpur the Chief Executive of the Dubai Financial Services Authority signed what’s known as a ‘memorandum of understanding’ with his associates in Malaysia that will see the initiation of a project to develop broad channels between the two nations for the removal of barriers for Islamic funding and for the cross development and promotion of the co-countries’ property markets as a whole.

The signing of the memorandum of understanding is just the very first step in what is hoped to be a long and profitable strategic venture between Malaysia and Dubai as both nations seek to expand their property markets, property derivatives, Islamic finance bases and overall economic benefits from property as a commodity.

Finally the winners of the 2006 Malaysia Property Awards are about to be announced and since their inception back in 1992 the awards have resulted in greater industry awareness relating to design and construction and development standards so that today the state of the property market in Malaysia is so far advanced of that in neighboring countries that it is ever increasing as a nation to consider from a property investor’s perspective.

Overall local industry, global expert and international property investor feelings relating to property in Malaysia as a tangible investment commodity are positive.

Special Reports: Property News for Malaysia

Malaysia Property Buying Process
The Malaysia property buying process is relatively straightforward, but raising local finance to buy Malaysian real estate is time consuming

Malaysia Property Buyer’s Country Guide
Luxury real estate developments across Malaysia are attracting international interest from property buyers attracted to the scope in the market.

Malaysia Property Investment Potential
Property investment opportunities in Malaysia offer strong rental yield potential and real estate investors draw confidence from Malaysia's strong economy