MPI to attract RM20bil foreign investments

Source: The Star Online

PETALING JAYA: Malaysia Property Inc (MPI), a joint public-private sector initiative, is aiming to attract foreign investments worth RM20bil in the domestic real estate sector over the next 10 years.

The key players in MPI are the Economic Planning Unit, International Real Estate Federation (FIABCI) Malaysian Chapter, Real Estate Housing Developers’ Association (Rehda) and the Malaysian Institute of Estate Agents (MIEA).

MPI chairman Datuk Richard Fong said a budget of RM25mil would be set aside by property players in the private sector over the next five years to promote Malaysia as the preferred property investment destination.

“The Government has in principle agreed to match this amount contributed by players in the private sector, making the total pool of funds RM50mil,” he told reporters after the official launch of MPI here yesterday.

Fong said the funds would be used for promotional activities, including property exhibitions overseas in places like Britain, Hong Kong, Singapore and the Middle East.

“We want foreign investors to know more about the competitiveness of Malaysian properties in terms of price, against countries like Singapore and Hong Kong,” he said, adding that Malaysia was likely the only country in this region that allowed foreigners to buy freehold property, besides providing them with exemption from real estate property gains tax.

“If you take a residential property in Kuala Lumpur City Centre (KLCC), the price per square foot would be around US$600, against US$2,000 in a comparable residential location in Singapore or Hong Kong,” he noted.

Fong said MPI would not only act as a platform to create greater awareness of the attractiveness of Malaysian properties as an investment destination for foreigners but also support and assist the various players in the real estate sector, including providing feedback to the Government.

In his speech at MPI’s launching, which was read by Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop, Prime Minister Datuk Seri Najib Tun Razak said the Government would continue to facilitate investments in the Malaysian real estate sector given its key role in the country’s economy.

Najib noted that last year alone, the industry contributed close to RM11bil to the economy, representing a growth of nearly 10%, compared to 2007.

MPI would give specific focus on promoting the Malaysia My Second Home programme, in addition to marketing Malaysia as the preferred destination for multinational companies to have their offices here, the premier said.

Najib, who is also Finance Minister, said the current investment environment was especially inviting, with no restrictions on domestic funding for foreign investment in local properties, in addition to further deregulation in Foreign Investment Committee guidelines.

The Government spending provided for the two stimulus package worth RM67bil would further boost investors’ confidence, he said.