Malaysia’s economic power to grow as integration with Asian economies progresses

MALAYSIA'S economic power is expected to grow as the country integrates more deeply with other asian economies in trade, innovation, culture, tourism and people flows, said Juwai.com executive chairman Georg Chmiel.

He said this is due to Malaysia's location at the heart of Asia, the world's largest regional economy, as revealed in a recent report by McKinsey Global Institute entitled “The Future of Asia”.

“Asia will fuel and shape the next phase of globalisation. This is the ‘Asian Century', and Malaysia is one of the four or five most important countries in Asia.

“The biggest opportunities for Malaysia are in other parts of Asia with 59% of foreign direct investment in Asia coming from other Asian countries,” he said in a statement yesterday.

Chmiel said three quarters of air travellers in Asia were travelling within the region, and 71% of investment in start-ups came from other Asian countries.

“There is so much potential in Asia in the digital economy, and even in these uncertain times, a smart budget can ensure Malaysia in 2020 sees more investment, more local employment and stable economic growth,” said Chmiel.

On the foreign property purchases, he lauded the government's call to sell the unsold residential units priced above RM1 million to foreigners, saying that it was a good move as there was steady demand from mainland Chinese and Hong Kong Chinese buyers wanting to invest in properties in Malaysia.

“Our data shows that Malaysia is the No 1 destination for buyers from Hong Kong. Data from the National Property Information Centre has shown that there are 4,213 unsold units priced above RM1 million, accounting for 12.8% of unsold supply,” he said.

“If we can showcase these properties for them to purchase and have a faster approval process on the scheme, the number of overhang properties can be reduced,” he added.

Chmiel also added that Malaysia was especially appealing to buyers from Hong Kong who were looking at retiring or even sending their children for education.

He noted that buyers from mainland China purchased RM9.5 billion worth of Malaysian residential and commercial properties last year.

“These buyers are a wealthy group of buyers eager to seek out opportunities across Asia. By buying in Malaysia, they create local economic growth and jobs for Malaysians.

They would open businesses, pay local taxes and fees, spend money in local stores and restaurants, and boost the tourism industry.

Juwai. com is a Chinese website for buyers of overseas property that takes advertising from international pro-perty marketers, including developers and agents.