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Malaysia, one of the fastest growing economies in the South East Asia
region, we believe the following factors make Malaysian real estate an
exceptional opportunity for investment:
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Malaysia's strong and stable economy: In the heart of an emerging Asia,
GDP is expected to grow around 6% per annum in 2008.
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The likely appreciation of the Ringgit: The Malaysian currency is the
third most undervalued currency in the world and is 51% undervalued
relative to the US Dollar, according to the latest "Big Mac Index"
published by 'The Economist'. The Ringgit is widely expected to
strengthen as government controls are gradually eased.
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Recent abolishment of property gains tax in Malaysia property gains tax
has been abolished from 1st of April 2007.
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Liberal investment rules relative to other emerging markets make
Malaysia property some of the most attractive in the world: Malaysia has
amongst the most liberal property-ownership regulations for foreigners
in Asia, with the process of liberalisation continuing.
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High development margins: Development margins are strong due to the
increasing real estate requirements of a rapidly growing and
increasingly-wealthy population.
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Growing competition between banks driving down lending margins:
Decreasing lending margins have a favorable impact on Malaysian property
valuations Increasing international interest in Malaysian real estate,
particularly from the Middle East.
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Malaysia is the only country in South East Asia which offers both
conventional and Islamic financing.
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Unlike some of its neighboring countries, it is fairly easy to buy
property in Malaysia. Thailand, the Philippines, Indonesia and even
Singapore all prevent foreigners from owning land, restricting them to
buying apartments or to using leasehold arrangements.
It is expected that many
smart investors will take this opportunity to invest intensively in the
real estate market before the next property shoot up cycle begin. The
number of such investors may not be substantial however they will become
of the most profitable ones.
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