Malaysia Reviews Rules for Foreign Investment
In an attempt to protect the country’s lucrative property market, the government of Malaysia has agreed to review the rules governing foreign investment. The move is welcomed by the country’s property professionals.
Although the announcement was triggered by concerns over the recent credit crunch, members of the property industry have been calling for the move for some time. The relaxation of restrictions on property investment by foreigners is largely seen as a way to increase Malaysia’s attractiveness as an overseas property investment destination.
According to Datuk Richard Fong, the Malaysian president of the International Real Estate Federation, the current foreign investment guidelines for the property market were introduced in 2006 and have been successful in attracting interest from investors from Asia, the UK and the United States. However, the restrictions that still remain are preventing the country from attracting higher levels of foreign investment.
James Gonzalez, Market Analyst at Obelisk, believes that these obstacles need to be lifted to maintain competitiveness in an increasingly tight market. “Malaysia is ready to launch a public-private sector initiative to attract €2.25 billion of foreign investment over the next 5 years. If they hope to reach that goal, they will need to remove unnecessary restrictions on investment. If not, investors will look elsewhere.”
These restrictions include the fact that each state authority has the discretion to assess every purchase made by a foreigner based on its location, type of property and the percentage of the total number of properties in the complex. If the state chooses, the purchase can then be blocked.
At the very least, this system causes unnecessary delays in the purchase process. Property professionals are looking toward a system where the federal and state levels will be integrated and the wishes of one level of government will not be counteracted by the other.
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).
Email: info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com.
For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com.
Although the announcement was triggered by concerns over the recent credit crunch, members of the property industry have been calling for the move for some time. The relaxation of restrictions on property investment by foreigners is largely seen as a way to increase Malaysia’s attractiveness as an overseas property investment destination.
According to Datuk Richard Fong, the Malaysian president of the International Real Estate Federation, the current foreign investment guidelines for the property market were introduced in 2006 and have been successful in attracting interest from investors from Asia, the UK and the United States. However, the restrictions that still remain are preventing the country from attracting higher levels of foreign investment.
James Gonzalez, Market Analyst at Obelisk, believes that these obstacles need to be lifted to maintain competitiveness in an increasingly tight market. “Malaysia is ready to launch a public-private sector initiative to attract €2.25 billion of foreign investment over the next 5 years. If they hope to reach that goal, they will need to remove unnecessary restrictions on investment. If not, investors will look elsewhere.”
These restrictions include the fact that each state authority has the discretion to assess every purchase made by a foreigner based on its location, type of property and the percentage of the total number of properties in the complex. If the state chooses, the purchase can then be blocked.
At the very least, this system causes unnecessary delays in the purchase process. Property professionals are looking toward a system where the federal and state levels will be integrated and the wishes of one level of government will not be counteracted by the other.
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).
Email: info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com.
For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com.
Labels: credit crunch, foreign investment, Malaysia, property, real estate
posted by Alison Kane at 9:54 am
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