Just some positive news for Malaysia #3

Just some positive news for Malaysia #3

3rd edition now… 🙂

Revival of the Klang Valley office sector?

“The Klang Valley office market is beginning to show signs of recovery after more than ten years of oversupply and weak demand, with anecdotal indications of stronger take-up in higher-quality developments.

Hong Leong Investment Bank Bhd (HLIB) said there are early signs of improved demand for high-quality office spaces, citing that Sunway’s V2 Tower achieved near full occupancy within just a year of its completion.”

Read here for full info: Article in nst.com.my

Comment: Note that the above says demand for high-quality office and used an example of an office tower as the reason. I am of the opinion that office space will continue to be in demand because if we are running a business, we need an office. No one will sign a big contract with you at the local mamak restaurant or at the guest lobby of your condominium. Sorry, if I am giving you business and you cannot even have a proper office, I am not too sure what you (business owner) wants to imply?

Thus, a good sign would be when more businesses realize that if they are serious enough, they will need office space. Drive around, and if we start seeing the office space around the neighborhood has new signboards and the car parks are full, then that’s a real sign that the growth is really moving down to even the SME level.

Lower Rates means More Money to Spend

Bank Negara Malaysia has cut the Overnight Policy Rate (OPR) by 25 basis points to 2.75 per cent to support economic growth amid global uncertainty. The central bank said the move is a pre-emptive step to preserve the country’s steady growth path as inflation remains moderate.

“While the domestic economy is on a strong footing, uncertainties surrounding external developments could affect Malaysia’s growth prospects,” Bank Negara said in a statement.

Read here for full article: malaymail.com

Comment: Mortgage rates will drop and people would have more money in their pockets every month. If they spend this money instead of keeping it somewhere (like under the bed), then we will see multiplier economic effects. When one spends at a shop, this shop spends on buying new products and hire more people, this new people will have salary to then continue spending. The typical multiplier effect is 4 times. This is good for the economy because it will then continue to move.

Manufacturing Malaysia: As long as it’s growing, it’s positive. It’s not an amazing environment now, okay?

Malaysia’s manufacturing sector recorded a sales value of RM158.7 billion in May 2025, marking a 2.4% increase year-on-year, according to the latest data from the Department of Statistics Malaysia (DOSM).

Export-oriented industries, which constitute a significant 71.1% of total manufacturing sales, grew by 2.7% in May 2025, albeit a moderation from the 5.1% growth in April.

Read here for the full article: business today.com.my

Comment: Sometimes, I have no idea why some writers just want to spin something negative about whatever data. Then I remembered that every time I write about negative stuffs, more people clicks to read. It’s the other way when I write about positive news. Perhaps that’s why. Anyway, manufacturing is huge for Malaysia and we are an exporting country. So, when the environment’s not so amazing and yet we are still resilient in our exports, it’s best to say things as it is. Nothing wrong with some feel good factor in the market too. Keep it up!

Happy reading!

Please feel free to share this article too. (links are all below) Thank you!

 Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER). 

Alternatively, Follow me on Telegram here.

Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles.

Else, follow me on Twitter here.