Quick facts about Malaysia
- Do you know that Ipoh is the third largest city in Malaysia and also the 'City of Millionaires'? There are around 700,000 people living in Ipoh.
- Forbes has also named KL at No. 6 in its list of 10 best cities to retire abroad, and the best in Asia, with factors include world class healthcare, affordable cost of living and widely spoken English.
Why invest in Malaysia?
Malaysia is an industralised market economy. From 1957 to 2005, the country has consistently been one of the best performing economies in the region, reporting an average GDP growth of 6.5% per year. As it matures, inevitably growth slowed down too, like all other matured nations. Read on to find why Malaysia is a destination to consider for property investments.
- The World Bank listed Malaysia as the sixth easiest country in the world to do business and the sixth most active country for foreign investment. We all know that ease of doing business is one important factor to decide if a company should invest in a country. Policies that welcome foreign investors tend to attract more FDI, resulting in creationg of jobs and increase in spending power.
- An educated, sizeable and relative young population, coupled with it's vast natural resources ranging from palm oil, rice to petroleum and natural gas sets Malaysia apart from her neighbours in Asean. A skilled workforce helps to ensure the sustainability of a knowledge based economy.
- High speed rail and Kuala Lumpur's transformation. Malaysia is considered one of the key strategic countries along the modern silk road. These transformation includes the high speed rail that links to Bangkok and then to China and other parts of South East Asia. As a result of the transformation, land cost is also increasing.
- Kuala Lumpur is a global city, and the only global city in Malaysia. The property market is supported by a steady pool of foreign and local expats who come from other parts of Malaysia. Many branded residences are already in the country. Why are the branded residences there?
- Malaysia is also one of the top destination for the middle eastern tourists who visit for leisure, as well as medical needs. The luxurious hotel chain from Dubai, Jumeirah Group will debut in KL in 2021. Not just that, Islamic-compliant real estate investing is well-established and relatively straight forward. Investors can fully leverage the comprehensive Islamic financial infrastructure and this is a further reason why Middle Eastern investors are attracted to this market.
What a buyer should know
- Foreigners are eligible to buy Kuala Lumpur or JB properties in excess of RM$1 million, and in excess of RM$2 million in Penang
- Foreigners are eligible to buy the property in their own name or under company's name
- All purchases made by foreigners are subjected to state consent
- Real Property Gain tax is at it's highest if you dispose the property within 5 years. It drops to 5% if you dispose from the 6th year