In order to have higher transaction numbers, besides just improving the sentiment, we need to also focus on the economic fundamentals; new investments to create new businesses and thus more new jobs. Without more people earning a fixed salary, the demand for property cannot continue to go up. Thus, I think the below news is a medium term positive news for the Malaysian property market. Too bad,I did not see anyone sharing this in their Facebook at all. Well, positive news are always forgotten anyway. Haha.
Within H1 2016, Malaysia attracted RM88.4 billion in investments. This information was given by the Malaysian Investment Development Authority (MIDA). From this, an estimated total of 76,000 jobs would be created. These new approved investments are in the services, manufacturing and primary sectors. Where Foreign Direct Investments (FDI) are concerned, a total of RM28.2 billion was approved during the same period. Oil and gas industry may not be attractive but they continue to be big. Two big petrochemical projects have been approved, one for Pengerang project in Johor and LNG9 project in Sarawak.
As per my sharing in my talk just a few days ago, I remain positive with the longer term fundamental for property investing. Besides just the economy, we also have the demographics which is still on the younger side. Take look at the image to understand. Today, the transactions would mostly be due to the people within the age brackets highlighted in a blue box. In the future, demand would be healthy because we still have a huge chunk of Malaysians within the red box. Happy believing.
written on 25 Sept 2016
Next suggested article: Malaysia – Ageing population – Stats and Steps