Malaysian Property Sector and Malaysia’s Budget 2008

Malaysian 2008 pre-budget information is being analyzed and theorized over in local and international press at the moment, and because the budget’s theme is ‘Enhancing Competitiveness and Sharing Economic Prosperity’, you can quite clearly see that this could bode exceptionally well for the international property investor climate in Malaysia going forward throughout 2008 and beyond...and you would be perfectly correct in your assumption!

Word has it that the government is wholly committed to its positive investment encouraging strategies and is even contemplating actively enhancing Malaysia’s competitive edge – not just in the region but globally; so, in terms of the Malaysian property sector and Malaysia’s budget 2008, there is plenty to be positive about for at least the medium term.

Already as we have discussed on this website, Malaysia is doing all it can to promote foreign direct investment into all economic driving industries and sectors – real estate is just one sector, albeit an incredibly important one.  To date the government has slashed taxes and made investing easier and therefore more attractive. 

On top of this, the positive development of the Malaysian economy in general has boosted investor interest in the nation – and you can add to this the positively developing tourism market, the increasing affluence of local people, the as yet affordable property prices and enhancements to make the Malaysia My Second Home Programme even more appealing, and you have every reason possible to invest in property in Malaysia…

Examining the 2008 pre-budget data and there is even more to support market entry at this point.

The government is about to fall just slightly short of the Ninth Malaysia Plan expectations for private FDI encouragement, (private FDI grew by 7% in 2006, it’s on target for 8.5% this year and now predicted to expand by 10.5% next year, but 9MP has a target growth rate of 11.2% set per annum), therefore it is widely anticipated that the budget will address the challenge of stimulating both domestic and foreign investments into the nation.

It is expected that the government will specifically target the property market and encourage growth therein in the following ways in the 2008 budget – initially it is expected to ease Foreign Investment Committee regulations on foreign purchases of residential real estate in Malaysia that is valued over RM 250,000 and possibly even remove the limit of three residential or commercial property loans being available to non-resident investors.

On top of this, real property gains tax should be scrapped in 2008 and the government may even go so far as getting rid of stamp duty on residential property costing no more than RM 250,000 and providing relief on interest expense incurred by first time buyers on housings loan not exceeding RM 250,000.

If the government does go as far as many are predicting to boost investor levels in Malaysia, 2008 could very well mark the beginning of an extremely exciting and affluent period in the property investment marketplace – you heard it here first!

Special Reports: Property News for Malaysia

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

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