I think most of us would agree that China should now be easily the biggest investor in Malaysia. From Iskandar in Johor to Bandar Malaysia in KL and even the East Coast Rail Link (ECRL), they are everywhere. Well, except Carey Island perhaps which may be by India. Read here: APSEZ and Carey Island with MMC Port Holdings, Sime Darby China has overtaken Singapore to become the top foreign investor in Malaysia’s property market. Reported in a few medias. Here’s one of them. todayonline.com Some facts from the article.
Between 2014 to 2016, Chinese companies invested an estimated S$2.6 billion (RM8.21 billion) in Malaysia, compared to Singapore’s S$1.6 billion (RM5.05 billion). This is as per a report by property consultancy Cushman & Wakefield published on March 27 2017. Ms Sigrid Zialcita, managing director, Asia Pacific Research at Cushman & Wakefield shared that since 2016, there are notable shift of Chinese investments into economic projects that will deliver longer-term benefits to the Malaysian economy. A few examples were shared. For example, China Railway together with Johor-based Iskandar Waterfront Holdings has jointly acquired a 60 per cent stake in the Bandar Malaysia project from state-owned 1Malaysia Development Berhad for S$2.3 billion. This is for the development of the world’s largest underground city. The project includes residential and commercial complexes and Bandar Malaysia is where the high speed rail into Singapore would start. Huawei Technologies has also opened its regional headquarters in Kuala Lumpur while Alibaba Group has been reported to be opening a regional distribution hub within KLIA Aeropolis as well as a logistics centre in Iskandar. One article here: Kuala Lumpur Internet City within Bandar Malaysia Chinese nationals under the Malaysia My Second Home programme totalled 8,000.
Some of these developments are on a longer term and is not expected to be providing a boost to the employment market immediately apart from construction sector. However this was what my friend who’s a human resource professional in a major construction company told me today. “It’s tough. The number of available workers are insufficient for the amount of construction happening today. That’s why we even give many special benefits to the people working at the site. For example site allowances.” On a longer term, as long as all these new developments happen, we can be quite assured that the investments from outside Malaysia would also continue and as usual with more demand means the real estate prices would also appreciate. As for question of whether this will only benefit these hotspots but not on a larger scale; further away areas, that’s already answered by all the more advanced property markets today. For example Singapore. Prices in further away areas like Punggol or even Chua Chua Kang will continue to increase because prices nearer to the CBD in Singapore is already increasing. When choices becomes too expensive, acceptance of new choices emerge. Simple equation. Happy following.
written on 7 April 2017
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