Investment in Malaysia Property Sector (Photo : Getty Images)
Many Chinese investors are attracted to invest into Malaysia property sector mainly because of the good ties between the two countries and also as encouraged by China's "One Belt One Road initiative," according to Yong Ruobing, managing director of MCC Overseas, a subsidiary of China Metallurgical Group Corporation.
In an article by nationmultimedia.com, Roubing cited seven reasons why Chinese investors are lured to invest into the property sector in the Southeast Asian country.
Ruobing bared these seven main reasons as low prices, natural environment, similarities in culture and language, quality education, the Malaysia My Second Home program, and freehold properties.
The director added that in Malaysia, the weather is good, air is fresh, and it is located near Singapore. He also praised the food as he enjoyed playing golf and there is no prohibition on social media.
"Malaysia has a good education standard and the Chinese education is complete here. Education fees are affordable. Students can further their studies in other countries after studying in Malaysia. There are also medical services which are world class," Ruobing said.
In addition, Ruobing said that unlike in Beijing, properties in Malaysia are freehold and they offer lease properties of 99 years in the country. Compared to Singapore, the property prices in Malaysia are only 20 percent to 30 percent of that in Singapore.
But investment funds from China also face some disadvantages investing in Malaysia.
Ruobing said that one of the drawbacks is security issues. He also enumerated the other problems which include traffic congestion, difficulty in finding tenants, low rental income, lack of huge projects, slow construction and exchange rate fluctuations. Foreigners also find difficulty in applying for loans.
According to the report, Chinese investors interested in mega projects are looking into making investments in the golden triangle of Kuala Lumpur, Mount Kiara and areas along the route of the mass rail transit. They are also considering investments in high-end residential areas in Penang, Johor and Kota Kinabalu in Sabah.
Ruobing urged for a review of the restrictions imposed on foreigners buying properties in the country such the one imposed by the Selangor State Government on foreigners which entitle them to buy properties worth above 2 million yuan.
In terms of business culture and style, Zeng Fei Teng, the deputy managing director of MCC, said Malaysia and China are not so far different from each other, which is the reason Chinese funds feel at home in Malaysia.
"Malaysians have better command of the Chinese language. This is also a key factor in drawing investment funds from China," Zeng said.
Country Garden Malaysia region president Jason Fu Jinling said that the company has four property projects in Malaysia. Some of them are built for local buyers while the others are for foreigners.
