KFH boost for 'Malaysia, My Second Home' scheme
By BUSINESS TIMES
KUWAIT Finance House (Malaysia) Bhd (KFH) and the Tourism Ministry have introduced a financing programme aimed at "Malaysia, My Second Home" (MM2H) participants.
"The KFH MM2H Hijrah-I programme is designed to provide participants full access to all banking and other financial facilities required during their stay in Malaysia," KFH managing director K. Salman Younis said at the launch of the new programme by Tourism Minister Datuk Seri Tengku Adnan Tengku Mansor in Kuala Lumpur yesterday.
External products and services including accommodation, education, medical as well as vehicle services will also be packaged into this programme.
"MM2H Hijrah-I's participants will benefit from the hassle-free services, before and after their application have been approved," Salman said.
Apart from the Tourism Ministry, KFH is collaborating with other local and foreign companies especially for education and property under this programme.
"We have established a joint venture with a South Korean property developer to sell two en-bloc condominiums to South Korean tourists in Malaysia. We also plan to promote this programme in other foreign countries where we have opened our KFH branches," Salman said.
KFH will help MM2H participants to expedite the process of obtaining visas.
"The Government will try to approve the visa application (of MM2H participants) within a month as we know that they need to do various security check-ups in order to stay in this country," Tengku Adnan.
He said last year, 1,728 foreign nationals have been accepted to participate under the MM2H programme, mainly from China, Bangladesh and the UK.
The ministry's target is to attract 100,000 under the MM2H programme by 2010.
There are two categories under the programme: Participants aged below 50 years and those above 50 years. A foreign national is required to provide a deposit of between US$75,000 and US$150,000 (RM257,250 and RM514,500) to participate.
"They can withdraw their money after a year's stay in Malaysia with approval from the ministry," Tengku Adnan said.
Wednesday, July 11, 2007
Race on to draw foreign investors
Race on to draw foreign investors
By THE STAR
Malaysia has the potential to attract more foreign investors to its real estate sector and plans are already in the pipeline to do just that
MALAYSIA will be on track to become one of the favourite real estate investment destinations if further liberalisation measures and conducive conditions are in place to raise its ranking in the international market.
Faced with strong competition from other major cities around the world to attract foreign real estate investors, Malaysia has to raise its ratings in various aspects, including quality of life index and international-standard property offerings.
Globally, real estate investment markets are experiencing unprecedented growth and many countries are opening up their markets to bring in investors to their shores. From Singapore to Hanoi and Manila, the race to bring in the foreign dollars is on.
The recent relaxation of Foreign Investment Committee rulings for foreign buyers and the exemption of real property gains tax augur well for Malaysia as a destination for property investments.
Malaysia's comparative advantages include having one of the lowest property prices in the region and a relatively low cost of living, good infrastructure and its transparent land and property ownership laws.
To kick-start efforts to draw foreigners to our shores, a joint public-private sector initiative is expected to be implemented soon to make Malaysia an international property destination.
Under the plan, Malaysia's premier properties will be showcased at exhibitions overseas, with target markets in the Middle East, South Korea and Japan.
The plan to attract RM20bil worth of investment will definitely help stimulate the property industry and 140 other industries which are directly related to the industry.
Welcoming the latest public-private initiative to set up a centralised coordinating body to plan and coordinate international property promotions and road shows as timely, developers are eager to throw in their full support behind the latest initiative.
SP Setia Bhd group managing director Tan Sri Liew Kee Sin said collectively, the package of incentives had sent a strong message to the international community that the Government was “pulling out all stops” to woo them to invest in the country's properties.
“Developers should take the cue from the Government’s actions to step up marketing and promotion efforts to capture a bigger share of the global real estate market which is forecast to reach US$450bil next year,” Liew said.
To ensure sustained demand from the foreigners, Liew said, greater efforts were needed to create a sizeable expatriate community in the country.
“This can only be achieved through policies that welcome foreign talent to live and work here and if the country continues to attract significant foreign direct investment in various sectors of the economy.
“The Government also needs to accelerate efforts to create a more favourable business climate with investment-friendly policies in place. The corporate tax regime plays a part – at 27% (2008: 26%), our corporate tax rate is still higher than Singapore (2007: 20%, 2008: 18%) and Hong Kong (2007: 17.5%),” he said.
Sunway City Bhd senior managing director Datuk C.K. Wong said that to raise Malaysia's competitiveness, the local councils and state agencies must be prepared to change their mindsets and move towards a more efficient delivery system.
“There is also a need to overhaul the restrictive regulations, which make it difficult for foreigners to buy properties, especially at the state level.
“It takes about four to five months to register a property transaction, while countries like Singapore can have this done in seven days. The proper implementation of the public delivery system will improve our competitiveness with the more efficient countries,” Wong said.
Zerin Properties chief executive officer Previndran Singhe said although a recent Real Estate Transparency Index study by JLL Research listed Malaysia as one of the most “real estate transparent” countries in the world, a lot still needed to be done to enhance its position in terms of regional attractiveness, based on the Quality of Life Index (see tables).
“We are ranked rather low in the globally accepted Quality of Life Index, which attracts private wealth. Singapore and Hong Kong, which are high in the ranking, attract huge amounts of private wealth.
“This private wealth indirectly translates into real estate investments. The future financial markets will be private wealth and private equity, and Malaysia needs to position itself to attract such funds,” Previn said.
The liberalisation of the financial markets has contributed to the boom in the commercial real estate market and will be driving the market for 2007. “These institutions and funds are flushed with cash and are looking for exposure to Malaysia's commercial and residential property sectors,” Previn said.
By THE STAR
Malaysia has the potential to attract more foreign investors to its real estate sector and plans are already in the pipeline to do just that
MALAYSIA will be on track to become one of the favourite real estate investment destinations if further liberalisation measures and conducive conditions are in place to raise its ranking in the international market.
Faced with strong competition from other major cities around the world to attract foreign real estate investors, Malaysia has to raise its ratings in various aspects, including quality of life index and international-standard property offerings.
Globally, real estate investment markets are experiencing unprecedented growth and many countries are opening up their markets to bring in investors to their shores. From Singapore to Hanoi and Manila, the race to bring in the foreign dollars is on.
The recent relaxation of Foreign Investment Committee rulings for foreign buyers and the exemption of real property gains tax augur well for Malaysia as a destination for property investments.
Malaysia's comparative advantages include having one of the lowest property prices in the region and a relatively low cost of living, good infrastructure and its transparent land and property ownership laws.
To kick-start efforts to draw foreigners to our shores, a joint public-private sector initiative is expected to be implemented soon to make Malaysia an international property destination.
Under the plan, Malaysia's premier properties will be showcased at exhibitions overseas, with target markets in the Middle East, South Korea and Japan.
The plan to attract RM20bil worth of investment will definitely help stimulate the property industry and 140 other industries which are directly related to the industry.
Welcoming the latest public-private initiative to set up a centralised coordinating body to plan and coordinate international property promotions and road shows as timely, developers are eager to throw in their full support behind the latest initiative.
SP Setia Bhd group managing director Tan Sri Liew Kee Sin said collectively, the package of incentives had sent a strong message to the international community that the Government was “pulling out all stops” to woo them to invest in the country's properties.
“Developers should take the cue from the Government’s actions to step up marketing and promotion efforts to capture a bigger share of the global real estate market which is forecast to reach US$450bil next year,” Liew said.
To ensure sustained demand from the foreigners, Liew said, greater efforts were needed to create a sizeable expatriate community in the country.
“This can only be achieved through policies that welcome foreign talent to live and work here and if the country continues to attract significant foreign direct investment in various sectors of the economy.
“The Government also needs to accelerate efforts to create a more favourable business climate with investment-friendly policies in place. The corporate tax regime plays a part – at 27% (2008: 26%), our corporate tax rate is still higher than Singapore (2007: 20%, 2008: 18%) and Hong Kong (2007: 17.5%),” he said.
Sunway City Bhd senior managing director Datuk C.K. Wong said that to raise Malaysia's competitiveness, the local councils and state agencies must be prepared to change their mindsets and move towards a more efficient delivery system.
“There is also a need to overhaul the restrictive regulations, which make it difficult for foreigners to buy properties, especially at the state level.
“It takes about four to five months to register a property transaction, while countries like Singapore can have this done in seven days. The proper implementation of the public delivery system will improve our competitiveness with the more efficient countries,” Wong said.
Zerin Properties chief executive officer Previndran Singhe said although a recent Real Estate Transparency Index study by JLL Research listed Malaysia as one of the most “real estate transparent” countries in the world, a lot still needed to be done to enhance its position in terms of regional attractiveness, based on the Quality of Life Index (see tables).
“We are ranked rather low in the globally accepted Quality of Life Index, which attracts private wealth. Singapore and Hong Kong, which are high in the ranking, attract huge amounts of private wealth.
“This private wealth indirectly translates into real estate investments. The future financial markets will be private wealth and private equity, and Malaysia needs to position itself to attract such funds,” Previn said.
The liberalisation of the financial markets has contributed to the boom in the commercial real estate market and will be driving the market for 2007. “These institutions and funds are flushed with cash and are looking for exposure to Malaysia's commercial and residential property sectors,” Previn said.
Time could be right for bargain-hunting
Time could be right for bargain-hunting
Smart buyers will anticipate turnaround
NINA SUEBSUKCHAROEN
Philips: 'Rdtail' approach should work well in Thailand
The lagging Thai real estate market could present a great opportunity for bargain hunters, says Martin Philips, managing partner of Engel & Volkers (Thailand) Ltd.
While markets in Hong Kong, Singapore and Malaysia have soared, the Thai market remains flat, although industry executives lately have noticed a pickup as people grow more confident of a peaceful return to an elected government.
According to Mr Philips, the Thai market could be poised for a turnaround, which could mean impressive gains for buyers. He points to Singapore, where he saw one property he sold two years ago appreciate by S$1 million.
Singapore's market is supported by foreign investors buying luxury projects that are integrated with resorts.
Although Mr Philips is confident in the Thai property market's long-term potential, he cautions that the strong baht has made Thai property expensive to new foreign buyers, while benefiting earlier investors.
Amid the upbeat projection of the Thai market's long-term potential, he acknowledged that the market, be it Bangkok, Hua Hin or Phuket, is lacklustre at the moment.
''There is no doubt, the market is telling us that political uncertainty is keeping investors on the sidelines. There is also the underlying influence of the potential amendment of the Foreign Business Act, which is not helping.''
Engel & Volkers sees opportunities to market high-end real estate throughout Thailand. Among its current listings is a villa located in Surin, Phuket that comes with a 30-metre infinity pool _ and an asking price of around 250 million baht.
Globally, he says, buyers are increasingly gravitating toward condominiums.
''I think that if you're living in the city, you're pretty much forced into a condo situation _ the absence of inner-city space makes it difficult for people to have landed property, so convenience, affordability, facilities and services can all be delivered through condo projects.''
He added that while condos have an edge, a lot depends on the project and unit one chooses.
''Every project has certain characteristics against other projects and it's whatever suits the buyer's needs,'' he said. ''Whether it's because it's closer to the road, the right way to take kids to school or affordability or size or location, there are many factors contributing to a purchase of any property for personal use.''
Similar to other Asian countries, there is demand in Thailand for older units, which offer more space at a lower price.
Mr Philips observed that cities worldwide tend to go through stages in which old neighbourhoods or buildings undergo major renovation and redevelopment, London being a prime example.
''You look at the docklands in London, warehouses were converted and they created lofts _ the space that you can get from some of the properties offers a good opportunity for people with flair to convert these properties.''
Engel & Volkers has put down roots and is expanding in Thailand in order to tap the markets longer-term potential. The company is moving to expand in Bangkok after establishing itself in Phuket and recently opening an office in Hua Hin together with a licensed partner.
Even though the market is slow at the moment, Mr Philips said this was a good opportunity for buyers to position themselves for a turnaround and for real estate agencies to respond.
''We think there is a good opportunity to establish a retail concept here for the sub-markets, so in other words not just one office in Bangkok but upwards of 15 offices in Bangkok,'' he said.
Each office would specialise in a certain district and together they would form a city-wide network.
The key difference of the Engel & Volkers network is that it appeals to the high-end market. Potential partners have to invest in the location, likely 2-3 million baht. They would then have to invest in the staff and obtain a licence costing about 50,000 euros, or 2.25 million baht.
''Royalties stand at 17.5% of the office's gross revenue. And for that they get an established brand and they become a part of the international network.''
As it expands, Engel & Volkers is also trying to stretch its reach and obtain Thai buyers rather than solely foreigners.
The company, which currently has 205 shops worldwide and has sold more than 250 licences, is also opening a booth at Phuket airport. ''It's a serviced booth to provide information to arriving passengers on the Phuket property market and opportunities to meet and greet our own clients who are coming in to view properties as well.''
The next step after Bangkok is not Samui as some might have thought, but Pattaya and Chiang Mai.
''There are some super properties up there (in Chiang Mai) and compared to Phuket they are certainly cheap,'' said Mr Philips.
Smart buyers will anticipate turnaround
NINA SUEBSUKCHAROEN
Philips: 'Rdtail' approach should work well in Thailand
The lagging Thai real estate market could present a great opportunity for bargain hunters, says Martin Philips, managing partner of Engel & Volkers (Thailand) Ltd.
While markets in Hong Kong, Singapore and Malaysia have soared, the Thai market remains flat, although industry executives lately have noticed a pickup as people grow more confident of a peaceful return to an elected government.
According to Mr Philips, the Thai market could be poised for a turnaround, which could mean impressive gains for buyers. He points to Singapore, where he saw one property he sold two years ago appreciate by S$1 million.
Singapore's market is supported by foreign investors buying luxury projects that are integrated with resorts.
Although Mr Philips is confident in the Thai property market's long-term potential, he cautions that the strong baht has made Thai property expensive to new foreign buyers, while benefiting earlier investors.
Amid the upbeat projection of the Thai market's long-term potential, he acknowledged that the market, be it Bangkok, Hua Hin or Phuket, is lacklustre at the moment.
''There is no doubt, the market is telling us that political uncertainty is keeping investors on the sidelines. There is also the underlying influence of the potential amendment of the Foreign Business Act, which is not helping.''
Engel & Volkers sees opportunities to market high-end real estate throughout Thailand. Among its current listings is a villa located in Surin, Phuket that comes with a 30-metre infinity pool _ and an asking price of around 250 million baht.
Globally, he says, buyers are increasingly gravitating toward condominiums.
''I think that if you're living in the city, you're pretty much forced into a condo situation _ the absence of inner-city space makes it difficult for people to have landed property, so convenience, affordability, facilities and services can all be delivered through condo projects.''
He added that while condos have an edge, a lot depends on the project and unit one chooses.
''Every project has certain characteristics against other projects and it's whatever suits the buyer's needs,'' he said. ''Whether it's because it's closer to the road, the right way to take kids to school or affordability or size or location, there are many factors contributing to a purchase of any property for personal use.''
Similar to other Asian countries, there is demand in Thailand for older units, which offer more space at a lower price.
Mr Philips observed that cities worldwide tend to go through stages in which old neighbourhoods or buildings undergo major renovation and redevelopment, London being a prime example.
''You look at the docklands in London, warehouses were converted and they created lofts _ the space that you can get from some of the properties offers a good opportunity for people with flair to convert these properties.''
Engel & Volkers has put down roots and is expanding in Thailand in order to tap the markets longer-term potential. The company is moving to expand in Bangkok after establishing itself in Phuket and recently opening an office in Hua Hin together with a licensed partner.
Even though the market is slow at the moment, Mr Philips said this was a good opportunity for buyers to position themselves for a turnaround and for real estate agencies to respond.
''We think there is a good opportunity to establish a retail concept here for the sub-markets, so in other words not just one office in Bangkok but upwards of 15 offices in Bangkok,'' he said.
Each office would specialise in a certain district and together they would form a city-wide network.
The key difference of the Engel & Volkers network is that it appeals to the high-end market. Potential partners have to invest in the location, likely 2-3 million baht. They would then have to invest in the staff and obtain a licence costing about 50,000 euros, or 2.25 million baht.
''Royalties stand at 17.5% of the office's gross revenue. And for that they get an established brand and they become a part of the international network.''
As it expands, Engel & Volkers is also trying to stretch its reach and obtain Thai buyers rather than solely foreigners.
The company, which currently has 205 shops worldwide and has sold more than 250 licences, is also opening a booth at Phuket airport. ''It's a serviced booth to provide information to arriving passengers on the Phuket property market and opportunities to meet and greet our own clients who are coming in to view properties as well.''
The next step after Bangkok is not Samui as some might have thought, but Pattaya and Chiang Mai.
''There are some super properties up there (in Chiang Mai) and compared to Phuket they are certainly cheap,'' said Mr Philips.
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