PIM_2012

DISCOVER MORE ABOUT YOUR HOME AWAY FROM HOME
2012

MALAYSIA PROPERTY
INCORPORATED
Malaysia Property Incorporated
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Menara UAC, No 12
Jalan PJU 7/5, Mutiara Damansara
47800 Petaling Jaya
Selangor Darul Ehsan
Malaysia
Tel +603-7724 1878
Fax +603-7724 1877
info@malaysiapropertyinc.com
Malaysia Property Incorporated (MPI) is an initiative by the Government of Malaysia
to promote corporate & individual Foreign Direct Investment (FDI) into Malaysian real
estate. MPI is the first port-of-call for information related to retail and institutional
real estate queries and works to fast-track retail interest and commercial partnerships
by connecting prospective investors with Malaysian industry players and
government authorities.
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The Expat Property Guide 5
J. Andrew Davison
his guide is intended to help non-Malaysians have a better understanding of
the Malaysian property market as well as the rules and regulations governing
the purchase of property by foreigners.
There has been a steady growth in foreign buyers in Malaysia since the
market opened its doors to foreign purchasers some twenty years ago. The
continuing liberalisation of the market combined with attractive prices and
increasingly sophisticated developments have all helped encourage buyers.
Despite prices rising steadily in recent years, especially in the Kuala Lumpur
area, they are still very competitive when compared with other major cities in
the region. Regulations on foreign ownership continue to be attractive with
many properties being available to foreign purchasers.
It is also much easier for foreigners to get bank loans even if they do not live
in Malaysia. Even non-resident foreigners, who can show documentation to
In addition the Malaysia My Second Programme has encouraged many
people, particularly retirees to buy property and settle in Malaysia. The fact
the visa is valid for ten years and is relatively easy to renew has encouraged
people to take a long term view.
The economic outlook is fairly strong, aided by Government Transformation
and the Economic Transformation Programmes (see page 15). These
ambitious programmes aim to transform Malaysia into a high income
economy by 2020. Introduced just two years ago they are already producing
some impressive results.
Most foreigners will not be familiar with the big names in the Malaysian
property market, so we have created a section at the end of this guide to
you can be sure that it will be of an acceptable standard. All of them are
committed to building quality homes and developments because of the
impact it has on their corporate image and reputation.
A positive indicator is the increasing number of resident expats who have
bought property. We at The Expat Group conducted a survey of expat
subscribers to our magazine, The Expat (which has the largest number of
expat subscribers of any publication in the country) to gather their views on
the property market. You can read the results on page 48.
for foreign buyers so make sure you visit it for the latest news.
publisher’s note
T

Publisher
J. Andrew Davison
Consultant Director
Marybeth Ramey
Group Editor
William Citrin
milan sadhwani
Art Director
Chai Siew Kim
Senior Graphic Designer
Charles Lee
Rusli Arshad
IT
rozalin mahmood, mohamed azman
a. saiful safuan abu yazid
Online Content Editor
Sarah Rees
Marketing
Joanne Tan
Media Director
Timothy Mcvey
Bill Cooper
Nick Davison
Zareena Alwee
Advertising
Olivia Yap, Emily Tang,
Joey Tan, Jessy Lou
Events Manager
Antoinette Perera
Distribution Manager
Suriah Ali
Manager - MM2H
Farzana Ali
Khoo Poh Lian
Printer
Print Scope Sdn Bhd (596276-T)
No. 38 & 40 Jln PBS 14/3,
Taman Perindustrian Bukit Serdang,
43300 Seri Kembangan, Selangor
Borneo Vision Sdn Bhd (295020 P)
7th Floor, Tower Block
Syed Kechik Foundation Building
Jalan Kapas, Bangsar,
59100 Kuala Lumpur
Tel: 03.2093 9539 / 2094 9664
Fax: 03.2094 9690 / 2094 9670
expatmagazine@theexpatgroup.com
sales@theexpatgroup.com
editor@theexpatgroup.com
Malaysian Property Market
08 Investing in Malaysian
Real Estate
15 Government and Economic
Transformation Programme
16 Putting the “Great” into Greater KL
18 KL’s Great New Address
20 Economic Analysis
22 MPI: Malaysia’s Real Estate
Investment Matchmaker
24 Types of Property
27 Map of Malaysia
28 Where to Invest?
33 KL Hotspots
34 Positive Buzz Continues for
Commercial Real Estate
36 Mega Commercial Enclaves
Rules and Money Matters
37 State Guidelines
38 Rules and Regulations
39 Sourcing Financing
40 Renting vs. Buying
44 Advice for Renters
The Expat Experience
48 Property Survey
52 Why Choose Malaysia?
74 Useful Websites
55 Award Winning Developers
CONTENTS
8-13
28-29
52-53
44-45

8 The Expat Property Guide
Malaysia has been ranked one of the top ten real
estate investment destinations worldwide and
has since received investors from all over the
world, including UK, US, Hong Kong, China, India,
Singapore, Indonesia and others. Things that make Malaysia
attractive are:
Direct Foreign Ownership with No Capital
Controls
Non-residents are free to purchase residential and
commercial properties in Malaysia. All purchasers are subject
to restrictions on Malay Reserve Lands and properties
allocated for Bumiputras. There is a minimum investment
value of RM500,000 (approx. USD $150,000) for property
in Malaysia.
Across both residential and commercial sectors, an increasing
number of existing and new developments are CONQUAS
compliant and fast adopting the Green Building Index (GBI)
Transparent Torrens Land Administration
System
Malaysian land law is based on the Australian Torrens System.
The rights of foreign investors to own and possess property
and to seek legal redress in the courts are guaranteed under
these laws.
Real Estate Investor-friendly Tax Environment
property is 5%, subject to the provisions of the Real Property
property is disposed of after 5 years of ownership. There is
no withholding tax on property disposal and no inheritance
tax. Investors may have to pay tax on earnings depending on
their income tax band.
Repatriation of Income is Allowed
Bank Negara Malaysia, the national bank, does not impose
proceeds from divestment of investments in Malaysia by a
non-resident.
Investing in
Malaysian
Real Estate
rules and money matters
SOURCES: MALAYSIA PROPERTY INC. & NAPIC
Bandar Raya Developments Berhad

Economy in Brief
F a c t s & F i g u r e s
Population Data (as of 2011)
Total Area
Political Structure
System of Government
Head of State
Prime Minister
Population
Major Ethnic Groups
Major Languages
Major Religions
Time
Climate
Currency
Exchange Rate
Total population (million)
Population density (per sq. km.)
Percentage of population by age (million)
Annual population growth rate (%)
Urban population (%)
Adult literacy rate (%)
28.6
86
27.7 (Below 15), 67.7(15 – 64), 4.6 (65 & above)
1.3
71
92
330,000 square kilometres (127,000 square miles)
A federation with 13 states (11 in Peninsular Malaysia and 2 in
Malaysian Borneo) and 3 federal territories. As a federation, the
governance of the country is divided between the federal and
the state governments
Parliamentary democracy with a constitutional monarch
DYMM Yang di-Pertuan Agong Sultan Mizan Zainal Abidin
YAB Dato’ Sri Mohd Najib Bin Tun Hj Abd Razak
28.31 million (2009)
Malays, Chinese, Indians, Kadazans, Ibans
Islam, Buddhism, Christianity, Hinduism
GMT +8 hours
US Eastern Standard Time +13 hours
Tropical - warm and sunny throughout the year.
Daily temperatures range from 33°C (90°F) in the afternoon to
22°C (70°F) during the night.
Ringgit Malaysia (RM) which is divided into 100 sen.
against a trade-weighted basket of currencies.
Valencia (Gamuda Land)

Sources: Malaysian Economy in Figures 2010 (Economic Planning Unit), Social Statistics Bulletin Malaysia 2009
(Department of Statistics)
Mobile & Internet Subscriptions
Mobile telephone subscribers
(per 1000 inhabitants)
Broadband penetration (%)
Internet penetration (%)
1,026.0
21.0
63.5
Transport & Services
Visitor arrivals (million)
Hotel occupancy (%)
International passengers by air (millions)
Domestic passengers by air (millions)
International cargo handled (tonnes)
Domestic cargo handled (tonnes)
Aircraft movements
24.6
75
21.1
26.4
116,668
491,751
209,681
Key Economic Indicators
Population
GDP
GDP Growth
Per capita income
Labour force
Unemployment
Total export (f.o.b.)
Total import (c.i.f.)
Major exports
Major imports
2010
28.3 million
7.2%
2.25%
11.5 million
3.4%
2011f
28.6 million
5% to 6%
3.0%
12.6 million
3.3%
Leisure Farm

PROPERTY MARKET IN BRIEF
The property market performance has shown solid progress
6,909 new housing units to the market. A total of 1,449 units
were taken up, achieving sales performance of 21.0%. The
new housing units launched decreased by 43.3% from 12,189
units recorded in the previous quarter. However, the sales
performance increased from 9.2%. The past four quarters saw a
total of 46,014 houses launched into the market, registering a
total take up rate of 14.2% (6,555 units) for the year.
As at end of Q2 2011, the total number of new residential units
launched in the country for the past nine months was 33,723
units. From the total number of units launched within the past
nine months, 12,497 units were taken-up, representing a take-up
rate of 37.1%.
By property type, terraced houses continued to dominate the
new housing market. This property type represented 56.6%
(19,084 units) of the national total. Single storey terraced units
made up 27.7% (9,344 units) whilst 2-3 storey terrace formed
another 28.9% (9,740 units). The condominium/ apartments
constituted another 13.1% (4,410 units) of the total. The 2-3
storey semi-detach and single storey semi-detach formed 8.5%
(2,867 units) and 8.1% (2,743 units) respectively.
The number and value of property overhang (completed units
which have remained unsold after nine months of launching
for sales) decreased from the previous quarter. There were
29,003 completed units worth RM6.740 billion which remained
unsold in the market. These overhang units comprised 22,422
residential units, 5,931 shops and 650 industrial units.
Source: JPPH
Summary of New Launches from Q1 2010 to Q1 2011
Quarter
Units Launched
Units Sold
Sales Performance (%)
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
25
20
15
10
5
Q2 2010 Q3 2010 Q4 2010 Q5 2011 Q6 2011
Unit Launched
Unit Sold
Units
Q2 2010
15,574
2,412
15.5
Q4 2010
14,625
2,346
16.0
Q3 2010
12,291
1,637
13.3
Q1 2011
12,189
1,123
9.2
Q2 2011
6,909
1,449
21.0
Source: NAPIC
Summary of New Launches of
Residential Units As At Q2 2011
State Units
WP Kuala Lumpur 453
WP Putrajaya 0
WP Labuan 0
Selangor 619
Johor 99
Pulau Pinang 1,015
Perak 722
Negeri Sembilan 882
Melaka 537
Kedah 578
Pahang 567
Terengganu 139
Kelantan 184
Perlis 314
Sabah 0
Sarawak 800
MALAYSIA 6,909
Mah Sing

UNIQUE FEATURES
10th Malaysia Plan 2011 – 2015
Two strategic components from the 10MP will positively impact the real estate sector:
The Government’s 10th Malaysia Plan (10MP) sets
a robust development allocation to the tune of
RM230b (the same amount was previously allocated
for 9MP). Predictions pinpoint the services and
manufacturing sectors as the main drivers of
economic growth with a targeted growth rate of
6.0% per annum in 2011-15 vs. 4.2% per annum in 2006-
2011. The 10MP will move in tandem with the New
Economic Model’s plan to achieve higher per capita
income. Gross national income per capita is targeted
to increase to RM38,850 or US$12,140 by 2015.
Public-Private Partnerships
participation amongst the 52 projects worth RM62.7b,
led by government-linked companies (GLCs).
With major infrastructure and development projects
that include construction of new highways, logistics
and manufacturing plants, the key themes of the PPP
initiative center around:
Development of Greater Kuala Lumpur
within the area are likely to push up
property values in the city centre
fringe areas. Surrounding areas also
stand to gain in value appreciation.
improvements in the building
standards of properties, amenities
and accessibility.
LIVING IN MALAYSIA
Political Stability
Malaysia has enjoyed 52 years of uninterrupted political and
social stability since achieving independence in 1957.
Multilingual Advantage
With Malaysia’s multicultural environment, most of the
population is at least bilingual. English is widely spoken
along with vernaculars such as Bahasa Malaysia, Mandarin,
Tamil and others.
Young and Growing Population
Malaysia falls into the category of a young society with close
to one-third of its population below the age of 14.
Good Travel Infrastructure
extensive network of highways that link all major cities and
towns. The North-South Expressway is the major motorway
that spans from north to south of the peninsular and is part
and Singapore.
Sound Basic Infrastructure & Amenities
Electricity consumption is high and available with minimum
interruption. Water and sanitation facilities reach a large
percentage of households. Malaysia is globally connected
through a host of communication service providers from
internet and mobile to satellite technology.
International Events
The famed Monsoon Cup in the East Coast, Langkawi
amongst the many world-class events that draws both local and
international crowds by the thousands.
Summer All Year Round
Malaysia is located near the equator and enjoys a tropical
climate. The average temperature is 20°C - 30°C all year round.
On the west coast of the peninsular, the monsoon season lasts
from September to December while on the east coast, the
Religious Tolerance
Christianity, Buddhism, Hinduism and Sikhism among others, are
also practiced freely.
Golf Haven
Malaysia boasts close to 200 golf courses, some of which are
from USD$50.
Away from Natural Disaster Zones
Malaysia is strategically located away from the earthquake belt
Guocoland

malaysian property market
BY ANDY DAVISON
The GTP addresses social and other
issues of direct concern to the average
Malaysian. A total of seven National Key
initiatives established to improve them.
The areas include education, hard core
poverty, crime and corruption.
been made in implementing the various
improvement projects.
The ETP is focused on 12 national key
economic areas which have the ability
to materially contribute to future
economic growth. In order to achieve
this, the government set up study labs
consisting of senior private and public
sector employees who were tasked
with studying eleven key industries to
identify initiatives which would help
them grow faster. The outcome was a
accelerate economic growth in each of
these sectors.
In addition to the eleven economic
areas there was one geographic one.
That is the Greater Kuala Lumpur/
Klang Valley plan. Its ambitious aim is
to make the city into one of the top
twenty most liveable cities in the world
as well as receive a top twenty ranking
in economic growth. You can read more
Government and Economic
Transformation Programme
about this initiative in the next article.
The Transformation Programmes
include setting up several new bodies.
Two of them, which were set up in
2011, have a direct impact on the
international community.
Talent Corporation Malaysia is tasked
with helping the government meet
its future need for an appropriately
talented workforce. This includes
attracting talent from overseas, both
expats and Malaysians who have chosen
to live elsewhere, as well as improving
the skills of resident Malaysians.
Another entity, Invest KL, is tasked with
attracting major multinationals to set
up operations in Malaysia as part of the
Economic Transformation Programme.
The GTP and ETP are comprehensive
plans to transform Malaysia. They
are already showing positive results
and there are plenty of reasons to
believe they will be successful. As in
every country, when bold new plans
are introduced, there are those that
question their achievability, but that
has been the case for the last thirty
years in Malaysia. During that time, we
have seen the country undergo a major
transformation which has impressed the
many expats who have chosen to live
here long term. We remain optimistic.
Naturally, anyone buying
property in Malaysia would like
reassurance that the economic
outlook is rosy. There have been,
however, various articles expressing
concerns about the country’s longer
term outlook.
This is partly because the supplies of oil
and gas which have been a major source
of income are dwindling. Malaysia has
had a long running plan to reach fully
developed nation status by 2020. Called
“Vision 2020”, it consisted of a series of
5 year plans which would transform the
economy and improve life for Malaysian
people. So far, it has done an impressive
job of moving the country forward.
However, even the government now
recognises it has some major obstacles
ahead. They have therefore embarked
upon two major initiatives which they
call the Government Transformation
Programme (GTP) and Economic
Transformation Programme (ETP).
The GTP and ETP are being overseen
by a new ministry called PEMANDU
(Performance Management and
Delivery Unit). These two programmes
country’s Gross National Income from
its current US$7,000 per capita to
US$15,000 in 2020.
PHOTOBYHUGHUJHAZY
Putrajaya

BY PAT FAMA
Who could fault a plan which
aims to transform Kuala
Lumpur into one of the
world’s most economically vibrant
and liveable cities by the end of this
decade? Particularly not one which so
accurately diagnoses the city’s current
shortcomings, and proposes such a wide
range of measures to remedy them.
To describe the Greater KL Plan as
ambitious is a huge understatement. It
calls for the wholesale transformation of
not only metropolitan KL, but also nine
surrounding districts in the Klang Valley.
Together the area covers 2,900 square
kilometres, and has a population of 5.7
million people, predicted to rise to 10
million within a decade.
The Government’s overarching aim is
for Greater KL (like the rest of Malaysia)
to achieve developed status by 2020. In
numerical terms, that means boosting
the size of the conurbation’s economy
from 240 billion to 700 billion ringgit.
Estimated organic growth is put at
155 billion ringgit, leaving a massive
shortfall. The Greater KL Plan aims to
bridge that gap.
One thing Malaysia has not lacked
over the years is ambitious plans. The
problem has not been a lack of vision,
but at times a lack of delivery. So, why
should anyone believe this time will be
Greater KL Plan is being spearheaded by
Pemandu, a unit of the Prime Minister’s
rather than career civil servants. The
head of the team which is driving the
plan is Ahmad Suhaili Idrus:
“The way the Government does
things, it’s not to say they are not hard
working, but they are being bogged
down by all the bureaucracy. Everything
that they do, they need so many people
to approve. They follow the book.
They don’t exercise any discretion.
Even though common sense tells
them, they don’t. As far as Pemandu is
concerned, we are professionals, we are
Putting the “Great”
technocrats. We just recommend what’s
best for this country.”
Every year, The Economist compiles
a list of the world’s most liveable
cities. The latest rankings (2011), which
are based on stability, healthcare,
education, infrastructure, culture and
environment, put KL at 78. One of the
two key targets of the Greater KL Plan
is for the city to make The Economist’s
top 20 by 2020. Idrus explains the
importance of liveability:
“Today the competition is between
cities, not countries. The expectations
have risen especially for professionals
- people who are very mobile in their
careers. When they look around, they
look for the country. If we don’t improve
on liveability, then KL will lose out, and
Malaysia will lose out.”
A crucial area of transformation will
be in urban public transport. Major
programmes are underway to increase

into Greater KL
capacity on the Monorail and the LRT;
to boost the number of buses; and
in the longer term, to build the Mass
Rapid Transit railway system. If you
count walking as public transport, then
this is being made easier too, with
miles of new pedestrian walkways.
Although still at the early feasibility
study stage, another proposal is to build
a high speed rail link between KL and
Singapore.
In terms of the environment, various
schemes are underway to make KL
a greener place. They include tree
planting; boosting the number of
buildings with rooftop gardens; and
increasing connectivity between parks.
A major overhaul of the management
of solid waste, from raising recycling
sites, is also envisaged. Meanwhile,
the River of Life scheme aims to clean
up 110 kilometres of the Klang and
Gombak waterways; and to beautify
a 10 kilometre stretch of riverfront in
central KL.
Although many of these programmes
are aimed at improving life for
residents, they should help to
encourage tourism too. Apart from the
Petronas Twin Towers, KL is lacking
in truly iconic attractions. With this in
mind, the Greater KL Plan envisages a
new Heritage Trail, from the National
Museum to a revived Medan Pasar
(Market Square); as well a 66-acre
cultural tourism park, called the
Malaysia Truly Asia Centre, near the
Istana Selangor.
The liveability score is only one part of
the equation though. The plan’s second
principal target is for Greater KL to be
one of the world’s top 20 economic
growth areas by 2020. A key part of
that strategy is attracting more foreign
businesses, preferably multi-national
corporations. To that end, a new body
called Invest KL, is now up and running.
Idrus explains the challenge ahead:
“A city like Shanghai has 17,100 foreign
companies domiciled there, Singapore
has 6,000, Beijing has 4,100. KL has
only 1,600. We can do better. If you’re
objective about it, there are so many
multi-national corporations. It’s just
a question of focusing and working
on it.”
Attracting and retaining talented
individuals is also crucial to help boost
growth. Talent Corp is a new body
charged with increasing the number
of skilled foreign workers in Malaysia.
But as yet, its criteria are too restrictive
for Greater KL to be any serious rival
to Singapore. Another, perhaps more
important role for Talent Corp, is
encouraging Malaysians living abroad to
return home.
In a sense, it is wrong to see liveability
and economic growth as separate issues.
Without greater liveability, successful
companies and individuals, will not
relocate to Greater KL. But without a
rapidly growing economy, the projects to

BY ALI ZARA
Everything about Kuala Lumpur’s
new address – the River of Life
(ROL) – looks just great!
The competition-winning masterplan
for the Malaysian capital’s ROL
project – by internationally renowned
United States – reestablishes the lost
connections of the urban fabric with the
Klang and Gombak rivers as well as from
one district to another.
with local authorities and industry
stakeholders.
works worldwide similar to the ROL
project are Singapore River; Jinji Lake
River in New York; Fort Bonifacio in
masterplan designs such as the 2012
London Olympics and the 2016 Rio de
Janeiro Olympics in Brazil.
KL’s Great
New
Address
Another of its masterplan projects is the
construction-in-progress Saadiyat Island in
foundation for the ROL’s 11 precincts
economic solutions taking into account the
site’s natural and cultural opportunities.
The intention is to create a harmonious
environment that raises the quality of life
and creates a fresh address of KL.
to the key elements include potential
connection and circulation; river
activities and landscaping.
The other key elements are urban design
and adaptive reuse; and environmentally
sustainable development.
The ROL will involve four phases and
11 precincts.

The precincts cover river corridors in
Titiwangsa, Pekeliling, Putra World Trade
Centre, Sime Darby loop, Dang Wangi,
Raja Laut, Masjid Jamek, KL Railway
Seputeh.
Phase 1 (comprising precincts 1 and 7)
will involve development of eco-parks
and mixed-use eco-villages, commercial
improvements.
Phase 2 (precincts 2, 9, 10) will include
transit oriented development around
light rail transit and the river, and public
housing.
Phase 3 (precincts 3, 8) will involve
Putra World Trade Centre and river
improvements, and adaptive reuse of the
KL Railway Station.
And Phase 4 (precincts 4, 5, 6, 11) will
cover development of New Canal@
Quayside, East Gateway, New City
Centre, South Gateway Festival Plaza and
public housing.
KL City Hall plans to commence
construction in precinct 7 by December
2012. It is expected to cover the Masjid
Jamek area where the Klang and
Gombak rivers converge and which is
important heritage-wise.
AECOM will work with the River of Life
Joint Development Committee to draw
up a comprehensive masterplan for the
10.7km stretch of the river as well as a
detailed proposal for precinct 7.
The overall design will involve
connecting historic places from where
the entire KL started, from tin mining
to British colonial times to the Japanese
Occupation and to how the city grew.
It will connect people such as communities
Kampung Baru. At the same time, the
connectivity will provide recreation
opportunities such as jogging, biking,
festivals and food fairs along river banks.
The idea is also to activate heritage
related to the birth of KL. This will
involve providing places and buildings,
which are currently not connected, with
continuous and conducive pathways.
Among these are Pasar Seni, Bangunan
Sultan Abdul Samad court building,
Dataran Merdeka and Masjid Jamek.
To connect, AECOM aims to achieve 60
per cent use of public transport compared
to 10 per cent at present by encouraging
residents to park-and-ride to work.
It also intends to make the ROL 100 per
cent transit accessible.
to many historic places and buildings,
AECOM wants people to remember the
city’s rich historical, cultural and heritage
values.
In addition, it will consider economic
aspects such as tourist attractions,
food and beverage and entertainment
outlets, employment opportunities
and enhancement of property values
riverside and in the vicinity.
To regenerate and unlock real estate
values, there are plans to reprogramme
and reuse empty land parcels and
dilapidated buildings to make the place a
lively address.
There will also be iconic waterfront
developments to rejuvenate the city, all
the way from Gombak in the north down
to Mid Valley City in the south.
Such waterfront developments will
be similar to those in global cities like
Melbourne, Paris, London, New York and
Singapore.
Other proposals include river cruises
time can cruise from one end of the
river to the other end to get to know
the city’s history and culture and the
people of Malaysia.
Artist’s impression of the River of Life developmentArtist’s impression of the River of Life development

BY ALI ZARA
The Malaysian economy is in a
relatively sound position to
say economists, citing several
key fundamentals supporting it.
These include high savings, strong
current account surplus, healthy foreign
Economic Transformation Programme to
stimulate private sector-led growth and
private investments.
Central Bank Negara Malaysia governor
Tan Sri Dr Zeti Akhtar Aziz said the
volatilities of the deepening European
sovereign debt crisis, adding that while
markets, it is now in a better position.
She pointed out Malaysia’s markets
institutions much stronger and the
noting its reserves are very high and
it can intermediate the volatilities
much better.
Economic Analysis: Malaysia
Ready for Global Volatilities
The country enjoys continuous access
system to Europe’s debt crisis is very low
At the same time, domestic demand,
which is the anchor of growth, is
underpinned by strong domestic
investments and consumption, although
the challenging external environment.
Furthermore, Malaysia’s corporate
and household sectors are not
overleveraged.
Zeti added that the government
is implementing several projects
announced earlier while foreign direct
growth areas.
According to global management
consultants A.T. Kearney, Malaysia is
among the world’s top 10 most attractive
destinations for FDI.
The country’s 2012 ranking jumped to
10th spot compared to 2010’s 21st – the

higher position driven by wealthier
consumer markets and abundant
natural resources and suggesting
the government’s transformation
programmes are producing results.
Meanwhile, data from the Ministry of
International Trade and Industry (Miti)
show Malaysia’s total trade reached
of 2011 despite the global slowdown.
Exports rose 15.8 per cent, beating
market expectations, while imports
grew 4.6 per cent.
Nonetheless, Miti Minister Datuk Seri
Mustapa Mohamed cautioned Malaysian
manufacturers and exporters to be
alert and be prepared for the challenges
Eurozone and United States woes.
On the regional front, a recent Asian
Development Bank report said trade
between regional nations and rising
domestic consumption fuelled by fast
growing middle classes would shield
the region from the worst of the global
the credit markets and are keeping the
investment pipeline liquid.
position is alarming, a World Bank senior
country economist, Frederico Gil Sander,
told a local business daily that it may be
high but is not at an alarming level given
the high level of government assets.
He explained that government-linked
corporations such as Petroliam Nasional
Bhd (Petronas) and Malayan Banking
Bhd (Maybank) have invested heavily
abroad and this has strengthened the
government’s balance sheet in terms
of assets.
He said while the government has plans
be good is the subsidy rationalisation
programme, which as a strategic reform
initiative could pave the way for higher
private consumption growth.
In its Malaysia Economic Monitor, the
World Bank expects the federal debt-to-
GDP ratio to come in at close to 55 per
cent in 2011 compared to 53 per cent in
2010 before increasing to 56 per cent
in 2012.
Sander said these are above the
government’s stated targets but
committing to credible long-term
important than keeping debt below a
given preset level.
Meanwhile, the World Bank has revised
downwards the growth outlook for
Malaysia to 4.3 per cent in 2011 to 4.9
per cent in 2012, expecting external
demand to stay subdued for the
remainder of 2011 and recover in the
It feels that while the country’s
projected growth is slowing down due
to external factors, improvements
can be made on the domestic front,
including investing in smart cities which
will require improving higher education
and quality of life in cities to retain local
talents and attract foreign skilled labour
that can contribute to innovation.
In recent World Bank rankings, Malaysia
global ranking to become one of the
doing business.

Malaysia Property Incorporated
organization formed under the
public-private partnership to promote
the Malaysian property industry and to
opportunity to invest in Malaysia. MPI
helps connect interested parties through
an extensive network of government
agencies, private sector companies, real
estate related associations.
There are two key functions to which
MPI subscribes:
with Malaysian real estate
organizations, developers and
governmental agencies to identify and
source opportunities
and requirements, MPI will identify,
match and present the best candidates
MPI thus provides for a credible
platform upon which Malaysian
developers can leverage to showcase
their products and for international
investors to enhance their investment
portfolios with Malaysian opportunities.
“There is our extended partner network,
our roadshows, seminars and facilities
such as the Malaysia Property Gallery
in Singapore that allows developers
Tharmalingam.
organised in partnership with the
relevant government agencies, both
developers and global investors will
support network and Government to
Government connectivity. The Economic
Planning Unit (EPU), Ministry of
International Trade and Industry (MITI),
Malaysian Investment Development
partner agencies.
government agencies thus provides
investors with less bureaucracy and red
tape, making the investment process
smoother and faster for both parties,”
In providing a more comprehensive and
attractive proposition for Malaysian real
estate, MPI will also feature supporting
sectors such as Malaysia My Second
and medical tourism.
Why Invest in Malaysia?
Despite three global downturns including
the worst global recession in the post-
the US (40).
Malaysia maintains its foreign exchange
of capital into and out of the country
economic stability.
For foreign investors, they are free to
repatriate any amount of their own
funds in Malaysia at any time, including
dividends, rental, fees and interest
arising from investments in Malaysia.
Malaysia’s Real
Estate Investment
Matchmaker
Kumar Tharmalingam, CEO of MPI

Real Estate
an agency under Ministry of Finance,
total property transactions recorded last
led by growth in the residential sector
followed by agriculture, commercial,
industrial and development sectors.
resilient throughout the past decade and
well. Property values have seen an
year due to the strong domestic demand
driven by its growing young population,
deregulation and liberalization of
is contributed by local purchasers while
coming from Singapore, Europe and the
Middle East.
square feet and is able to produce about
and low volatility investment climate.
Study in Malaysia
more than 100 countries pursuing courses ranging from English language courses,
universities and foreign university branch campuses in Malaysia. Many international
Mont’ Kiara skyline
Kuala Lumpur City Centre
Healthcare Destination
developed nations. Internationally accredited hospitals of Malaysia are capable of
handling the latest techniques and procedures with cost considerably less than similar
ones in neighbouring countries.
United States and many others as well as in local universities.
Procedure USA UK Germany Singapore Malaysia
Heart Bypass (CABG) 30,000 27,395 14,310 9,643 9,220
Hip Replacement 44,816 21,335 10,856 8,359 5,000
Cataract 5,510 5,296 2,159 1,433 895
Rhinoplasty 6,000 8,264 6,168 4,478 2,500
Eye Tuck (Both eyes) 5,500 8,401 3,454 2,388 1,425
Tummy Tuck 8,000 10,227 4,318 4,500 3,395
Source: KPJ Healthcare
Cost Comparison in USD by Selected Medical Procedures
Pre-University Studiess Es mated Tui on Fee Dura on
GCE ‘A’ Level, UK
RM15,000 - RM25,000
(USD4,690 - USD7,810)
15-18 months
Western Australian Matricula on (AUSMAT), Australia
RM11,000 - RM21,000
(USD3,440 – USD6,560)
10 months
South Australian Matricula on (SAM), Australia
RM21,000 - RM25,000
(USD6,560 - USD7,810)
10 months
Canadian Pre-U, Canada
RM19,000 - RM29,000
(USD5,940 - USD9,060)
2 months
University of New South Wales (UNSW) Founda on Year
RM14,000 - RM23,000
USD4,375 - USD7,190)
12 months
Interna onal Baccalaureate Diploma RM79,000.00 (USD9,062) 24 months
University Founda on Studies / Matricula on
RM9,000 - RM15,000
(USD2,810 - USD4,690)
10 - 12 months
Source: StudyMalaysia
Es mated Tui on Fees for University Founda on or Pre-University Studies (in RM/USD) at PHEIs
External Qualifications
Internal Qualifications

BY ANDY DAVISON
There are two broad categories of
property sale: sales by a developer
of newly constructed properties
and sales by individual owners of existing
properties.
New Developments:
In Malaysia it is common for developers
means you purchase the property before
it is built. Under the Housing Developers
Act, property developers are required
to complete the construction of these
properties within three years of the
purchaser signing the Sale and
Purchase agreement. Purchasers are
required to make periodic progress
payments throughout the three year
progress has been made on the overall
project construction. Usually 5% of the
price is held by solicitors for up to 18
months after completion to cover any
defect claims.
Different
Types of
Property
The Malaysian government is
encouraging developers to change to a
they will complete construction before
making the sale.
The suggestion is that the purchaser
then pays a 10% payment to secure the
property and the balance is only payable
when the property is completed.
Existing Properties
Purchase of existing properties usually
involves a down payment of 10% of the
purchase price (this may be made in two
7% within two weeks). The remaining 90%
is payable within three months. After
that period, then interest would become
payable on the outstanding balance.
Before buying an existing property you
should ensure there will be no problems
in obtaining the necessary State approval
to acquire it as a foreigner.
Condominiums

another property. Two homes make up
one building.
Bungalows
This is a detached standalone house
on its own land. Unlike some countries
where the term means a single story,
smaller dwelling, a bungalow can be any
size in Malaysia. Some are extremely
large with built up areas exceeding
10,000 square feet.
There are a great variety of apartments
available in nearly all major towns
and cities. They vary from small and
very cheap to extremely large and
correspondingly expensive. Many are
priced below the RM500,000 minimum
purchase limit for foreigners which
applies in most states in Malaysia.
Newer, more expensive apartment
various facilities like a pool, squash and
tennis courts and a gym.
Condominiums
Unlike some countries, where there is a
legal distinction between a condominium
terms can be interchangeable. Usually
using the term condominium means the
development has more facilities.
Gated Community
This generally refers to developments
which have controlled access with a
guard house and fencing surrounding
the whole development. This usually
means security will be better but it is
advisable to check exactly what security
access, ask how often guards patrol the
development and what system they have
to let visitors enter.
Freehold/Leasehold Land
Foreigners can acquire both freehold
and leasehold land in Malaysia. Most
leasehold land is owned by the state and
leases are usually for 60 or 99 years.
At the end of the lease it is fairly easy to
renew the lease for a further 99 years
upon payment of a premium which is
based on the current market value of the
property. It is also possible to arrange
for a new lease during the period of the
existing lease.
This involves cancelling the existing lease
types of land cannot be purchased by
foreigners. See page 38)
Property Types -
Local terminology
Malaysians use the following terms to
describe the types of residential
property available:
Terraced Houses
These houses usually share a wall with
the adjoining property on both sides.
They are typically one or two stories
high but occasionally they consist of
major cities like Kuala Lumpur are being
renovated.
Some of the end units which often
have extra land with them are often
reconstructed to substantially increase
their built up area with a corresponding
reduction in their garden space.
Town Houses
These are essentially the same as
terraced houses except they tend to be
more up market and expensive. Some
may have an internal patio.
Semi D
This is short for semi detached and refers
to a house which is joined on one side to
Gated comunnity
Apartments and bungalows in Bangsar

map of malaysia
Indonesia
Brunei
Singapore
Thailand
Penang
Perak
Selangor
Putrajaya
Melaka
Johor
SabahLabuan
Sarawak
Negeri Sembilan
Kuala Lumpur
Kelantan
Pahang
Terengganu
Perlis
Kedah
Malaysia is a federation of 13 states and three
federal territories and has a total landmass
of 329,847 square kilometres. The country
is divided by the South China Sea into two
regions: Peninsular Malaysia and Malaysian
Borneo (also known as East Malaysia).
The map below shows the various states
and federal territories of Malaysia, with the
property hotspots marked in red.

Where to Invest?
From the modern, urban metropolis of KL to the jungles of Sabah there are
no shortage of options when it comes to deciding where to live in Malaysia
Many expats prefer to settle
down in Malaysia as they
appreciate the proximity
between its cities, glorious beaches and
verdant jungles. Whether you are looking
at the suburbs of the city or further
outside the capital, here is a rundown of
properties in some favourite destinations
in Malaysia:
Kuala Lumpur
Population: 1.8 million
of Malaysia, KL is at the centre of the
action and the forefront of fashion. A
city of approximately 1.8 million people
(surrounded by a ring of satellite cities),
home. There are thriving commercial
centres throughout the city with ample
opportunity for shoppers and an
endless string of world-class restaurants
as well as humble hawker stalls.
Homes in KL vary from Semi-D
bungalows along quiet residential streets
to sky-high condominiums in the city’s
‘Golden Triangle’ district.
Living near Putrajaya, the administrative
capital, makes dealing with government
services a bit easier, and with KLIA only
an hour’s drive away, it makes home feel
a lot closer.
Hotspots: Mon’t Kiara, Bangsar,
Damansara Heights, Sri Hartamas.
Taman Tun, Ampang, Golden Triangle.
Prices:
(4,000 sq ft built-up area) in Bangsar’s
Telawi area – RM1.9 million;
(4,000 sq ft built-up area) in Bangsar
(3,600 sq ft built-up area) in Changkat
(2,800 sq ft built-up area) on Jalan
(3,200 sq ft built-up area) on Jalan
Setiakasih in Damansara Heights –
RM3.1 million;
sq ft built-up area) in Putrajaya –
RM899,000.
If you’re coming from any urban centre,
you’ll feel right at home. However, if KL
isn’t what you’re looking for or if you
prefer something outside the hustle and
bustle of the city, here’s an overview of
properties in other states. You should
also bear in mind the further you’re
out of KL, property prices are relatively
cheaper.
Selangor
Population:
Selangor is also the richest state in
Malaysia in terms of gross domestic
product (GDP) and second richest in
Malaysia by the then state government.
Petaling Jaya is the prosperous region in
terms of property development.
The Klang-Shah Alam corridor has also
seen potential growth for residential
addresses with the launch of projects
such as Bandar Bukit Tinggi, Setia Alam,
Setia Eco Park.
Hotspots: Tropicana, Kota Damansara,
Bandar Utama, Puchong, Serdang in
Seri Kembangan, Ampang.
Prices:
ft built-up area) in Tropicana, PJ –
RM3 million;
sq ft built-up area) in Bandar Kinrara,
ft built-up area) in Kota Damansara –
RM1.6 million.
Penang
Population:
The government recently revealed
plans to develop the Northern Corridor
Economic Region (NCER) – an economic
and social development initiative aimed at
increasing the potential and income levels
of Malaysia’s four northern states of
Penang, northern Perak, Kedah and Perlis.
Penang will be heavily involved in the
NCER and it is learnt that many high-
earmarked for the state. A second
estimated to be fully operational by
congestion on the current bridge to
the mainland. The property market in
NCER structural growth extention,
according to a recent report released
by Deutsche Bank. The developers too
have high hopes of Penang competing
for foreign investment under the MM2H
programme, especially those high-end
projects on the seafront.
Putrajaya

Hotspots: Gelugor, Tanjung Bungah, Batu
Ferringhi, Gurney Drive.
Prices:
built-up area) in Gelugor and Tanjung
built-up area) in Batu Ferringhi –
ft built-up area) in Batu Ferringhi –
RM400,000;
built-up area) in Tanjung Bungah
RM2.0 million;
RM2.1 million.
Johor
The third largest state in Peninsular
Malaysia, Johor neighbours Singapore
and is a mix of modern culture, island life,
urban settings, and ancient biodiversity.
Iskandar Malaysia, formerly known as
Iskandar Development Region (IDR) and
South Johor Economic Region (SJER)
is the new main southern development
kilometre enclave of IDR is 48 times the
size of Putrajaya and three times the size
of Singapore.
The Iskandar Region is a major
government initiative to attract foreign
investment. Larger than Singapore,
the area has residential, commercial,
education and entertainment zones.
Legoland is currently building one of
their theme parks in Iskandar region and
it should be completed in 2012.
The residential area is called Nusajaya
and there are several new property
developments completed or under
construction which are attracting
foreign buyers.
Taman Laguna is also said to be the rising
star in Johor Bahru’s property market. The
development will be completed in stages
and is scheduled to be completed in 2013.
Hotspots: Johor Bahru, Danga Bay Area,
Leisure Farm Resort, Taman Laguna,
Bandar Nusa Jaya, Horizon Hills.
Prices:
(1,038 sq ft built-up area)
ft, 2,863 sq ft, 3,206 sq ft, 3,220 sq ft
built-up area) in Taman Laguna –
RM400,000, respectively;
built-up area) in Bandar Baru UDA
8000sq ft) in Horizon Hills – starts at
RM2.3 million.
Sabah
Abundant in lush rainforests, sub-
mountains and colourful cultures,
Sabah is a rugged place for adventurers,
playground for divers and a paradise for
anyone with the adventure to explore.
As such, many expats have chosen to
retire here.
Property developers have responded
to demand by launching new projects
for foreigners who are looking for
exotic products under MM2H for
investment purposes. Kota Kinabalu
and Karambunai Peninsular are the top
areas for people looking to invest.
Sabah has one of the highest tourism
that the demand for holiday property is
expected to soar.
Hotspots: Kota Kinabalu, Karambunai,
Bandar Sierra.
Prices:
built-up area) – RM620,000;
built-up area) – RM448,000;
built-up area) in Nexus Residences
Melaka
Population:
Melaka is a beautiful, historic town, listed
since July 2008. Schools such as a the
Melaka International School and the
Melaka Expatriate School cater to
expatriate students, and hospitals such
as Hospital Melaka and Putra Specialist
services for those in need.
The tourism and manufacturing sectors
are the two most important sectors in
the state economy. Melaka has adopted
as its slogan, “Visiting Melaka Means
Visiting Malaysia”. It is rich in cultural
heritage and has several places of
historical interest.
Hotspots: A Famosa, Batu Gajah, Bukit
Baru, Tanjung Kling, Melaka Raya.
Prices:
RM390,000
Perak
Population: 2,393,000
The second largest state in Peninsular
Malaysia, the state of Perak (which
means “silver” in Malay) derives its
name from the silvery colour of tin, a
once abundant resource there in the late
nineteenth century.
Ipoh, the capital of Perak, was renowned
throughout the world in the 1800s for
its tin mining industry. The city still
maintains much of its quaint, classic,
colonial charm and the surrounding
environment is breathtakingly lush.
With several high-end developments
in and around Ipoh, this area is rapidly
becoming a popular place to invest in
property.
Hotspots: Ipoh and its surrounding areas,
The Haven, Meru Valley, The Enclave.
Prices:
(1600 sq ft) – RM300,000
(6,200 sq feet) – RM2,000,000
Melaka Penang

BY ALI ZARA
Notwithstanding the largely
negative global economic
conditions, Malaysia managed to
register 4.4 per cent economic growth
for Q3 2011.
Likewise, the country’s property market
has been experiencing growth to date.
According to CB Richard Ellis (Malaysia)
Sdn Bhd, capital values of high-end
condominiums are expected to hold
at the current price levels, supported
mainly by local investors.
packages and continuing low borrowing
between 4.20 per cent and 4.40 per
cent) are still supporting developer
sales. The recent quarter witnessed
several launches of high- end
condominiums.
Among these, phase 1 of Verdana
Condominium at Kiara North is priced
at an average of RM580psf, Mirage
and The Face at KLCC at an average of
RM1,200psf and RM1,300psf respectively,
serviced apartments at Sunway Velocity
at an average of RM700psf, and The
Greens at Taman Tun Dr Ismail at
RM720psf.
Take-up rates of units priced below RM1
million have been encouraging. Phase 1
of Verdana Condominium reportedly sold
over 60 per cent of the total 298 units
while The Greens’ 165 launched units
were fully sold.
Meanwhile, the subsale market has
recorded marginal price increases while
the rent of high-end residences remained
stable since early 2011, averaging
RM3.50psf in KL.
Selling prices of the units are between
RM3.3 million and RM4.4 million, or
RM900psf.
The average monthly rental value of
high-end condominiums in KL is stable
at RM3.50psf but new completions are
expected to keep the rate competitive.
The DTZ Fair Value Index, published in
where well over 80 per cent of the
markets remain at or above fair value,
A more recent report by Knight
Frank’s Global House Price Index
maintained its confidence on KL,
predicting a modest growth (less than
five per cent) despite the backdrop
of mounting pressures on the global
economy with no clear solutions to
resolve the Eurozone debt crisis.
Malaysia is ranked 11th ahead of
neighbours Singapore at 13th and
Exciting Residential
Projects in the Pipeline
Verdana Condominium
Indonesia at 16th, with a 6.6 per cent
year-on-year increase. Hong Kong, which
ranks at the top of house price increases,
registered 19.3 per cent growth.
These numbers are expected to see a
weaker phase of growth, but luxury
properties are envisaged to be better
insulated throughout the phase as
affluent purchasers continue to take
advantage of the low mortgage
rates introduced earlier as a stimulus
measure against the late 2008 global
financial crisis.
There’s also expectation that the latest
measure introduced by Singapore – the
imposition of additional buyer’s stamp
duty on foreigners and permanent
residents buying properties there –
Malaysia, Johor.
Foreigners and companies will now have
to pay an extra 10 per cent stamp duty
on residential property purchases in the
island republic.
Johor Real Estate and Housing
Developers’ Association branch chairman
Simon Heng said foreigners buying
properties in Singapore for investment
might look elsewhere in the region.
It looks like the Malaysian property

Capital Square Sdn Bhd (6234-P) Level 10 Menara BRDB, 285 Jalan Maarof, Bukit Bandaraya, 59000 Kuala Lumpur. T: +603 2688 2888
A subsidiary of Bandar Raya Developments Berhad
’
6 CapSquare is one of Kuala Lumpur’s premium lifestyle residences, designed for the ultimate in city living. 176 units sized between 1,119 and
4,338 sq ft, have kitchens fully-fitted with branded appliances and built-in wardrobes in each bedroom. They offer the discerning resident
a variety of space options.
Its strategic central city location, nearby LRT and Monorail stations, doorstep access to retail, commercial, entertainment and dining choices and
competitively-priced real estate make sound economic sense. Sweetening the deal is a neighbourhood that embraces a protected rainforest
sanctuary and 6 CapSquare’s proximity to KLCC and KL Tower.
Take that first step into your new reality. Visit our sales gallery today.
6 CapSquare Sales Gallery | Open 10am – 5pm Daily | +603 2697 8787 | www.6capsquare.com.my

Contact us at 03-2093 9539 or email
zana@theexpatgroup.com for more information.
THE MALAYSIA
MY SECOND HOME PROGRAMME
RETIRE IN MALAYSIA AND ENJOY
A ten year renewable visa Tax free car
Tax free overseas income No inheritance tax Low cost of living
Sun, smiles, sea and sand Good infrastructure
Friendly people Much more
Find out more at
WWW.MM2H.COM

BY PREVINDRAN SINGHE, CEO OF ZERIN PROPERTIES
Bangsar
Ampang
Ukay Heights
Taman TAR
Taman Melawati
Cheras
Mont Kiara
Kuala Lumpur
Petaling
Subang/USJ
Taman Tun Dr. Ismail
Damansara/
Bandar Utama
Tropicana
Bandar Sri Damanasara/
Desa Park
City
Where is the best location to invest in residential
properties in Klang Valley? This article answers the
question based on our analysis and projections of the
market and also on current trends and lifestyle needs.
The Usual Suspects
These locations are for those who prefer to invest in proven
locations i.e. conservative investors. They include:
1. Bangsar Baru, Bangsar Park & Bukit Bandaraya
2. Damansara Heights
3. Taman U Thant/Ampang Hilir
4. Mont Kiara
5. Taman Tun Dr Ismail
6. Bandar Utama
7. Petaling Jaya especially Sections 5, 14, 16 and 17
8. SS2, Damansara Utama and Damansara Jaya
9. Subang Jaya and USJ
10. Taman TAR & Ukay Heights
11. Taman Melawati
12. Bandar Sri Damansara
13. Cheras (especially Taman Midah, Taman Cheras,
Bandar Sg Long, Bandar Tun Hussein Onn)
14. Tropicana
15. Desa Park City
to limited supply. The properties are sizeable compared to newer
products in the market. Despite their steep prices, we anticipate
their prices to appreciate further in the mid to long term.
The Underdogs
The following are underrated but, based on location, potential
growth in and around the vicinity, quality of the product and
upside in the long term.
1. Medan Damansara. Just next to Bangsara and within the
Damansara Heights vicinity, this practically forgotten
neighbourhood is a sure winner in the long run.
Valley, this is the most underrated location in Klang Valley.
3. Taman Desa. Well-connected by highways and public
transport, the homes here are very nice, spacious and have
ample amenities and facilities.
4. OUG, Taman Yarl and Taman Kanagapuram. These
established, mature neighbourhoods now are also well
connected by highways.
5. Serdang. Serdang is easily accessible to both Putrajaya
and KLCC. It has two universities in the locality and history
has shown universities are growth centres to the locale
they are in.
Residential
Hotspots in
Kuala Lumpur
6. Puchong. Tesco and Jaya Jusco are here. Just stick to
good developers.
7. Jalan Ipoh 3rd Mile – 4th Mile. There are beautiful bungalows
in this location as well as some beautiful old single and
The Upstarts
give you some good returns as an investment.
1. Balakong/Seri Kembangan. The location and its commercial
and industrial content makes this area a nucleus for growth.
We foresee this neighborhood to accommodate some very
nice developments in the near future.
2. Sentul Raya. A hands down winner, developers YTL
have surpassed themselves in reviving the project into a
lifestyle project community. Unfortunately there are no
landed properties.
3. Mutiara Damansara. A very nice neighborhood development
and also very well connected to Sprint, LDP and NKVE.
The Curve, Ikea and Tesco are a strong pull here. All its
launches have been runaway successes.
4. Damansara Perdana and Damansara Damai. Damansara
Perdana is about to launch their terraced houses whilst
Damansara Damai’s duplex apartments are truly trend-
setting at reasonable prices. Both are developed by
reputable developers and in a good growth area.
5. Putrajaya. This is a long-term investment but a sure one. With
and around here, the upside is very obvious.
6. Desa Park City.
Take a visit and be
blown away!
Whatever you decide,
be sure to back up
your decisions with
ample information, a
structured decision-
making process and
reliable advice.
Previn is the Principal
of Zerin Properties, a
Licensed and Registered
Estate Agency Service
Provider.
For feedback please
email previn@
zerinproperties.com
or visit www.
zerinproperties.com

BY ALI ZARA
G
So would the euro crisis halt the
Positive Buzz Continues for
Commercial Real Estate

BY ALI ZARA
The government has earmarked
eight mega projects in the Klang
Valley alone that will each create
commercial enclaves with the vision
of uplifting Malaysia’s capital, Kuala
Lumpur, to the next level in the global
marketplace, according to CH Williams
Talhar & Wong (WTW), a leading real
of Greater KL into a world class city on
par with Seoul, Tokyo, Hong Kong, New
York, London or Singapore is one the
mega projects, collectively, are expected
to create thousands of jobs, cause
fundamental changes to lifestyles and
aspirations, and shift the local economic
In terms of real estate, the capital values
of various localities in the Klang Valley
are expected to experience marked
appreciation while more properties in
the vicinity of these projects and the
mass rapid transit (MRT) will become
viable for commercial and residential
Places such as Sungei Buloh, Kota
Damansara, Mutiara Damansara, Bandar
Utama, Taman Tun Dr Ismail, Phileo
Damansara, Pusat Bandar Damansara,
Warisan Merdeka, KL International
Financial District or KLIFD, Cheras and
Kajang will be well connected KL-wide
In an overview of the commercial market
segments, WTW said 10 buildings in the
Klang Valley were completed in 2010,
Prima 10, Menara Kencana, TRW
space in the Klang Valley is expected to
Mega Commercial
Enclaves for a
World-Class KL
years with the bulk of the new supply
towards a very competitive market
environment, pointing out the outlook
will depend on the success of the
government in implementing the
Economic Transformation Programme
and on the ability of government-
market their mega projects to more
“The market is expected to have an
immense contribution to new supply
in 2011 if several massive projects are
WTW also observed that more
developers are constructing Green
they use as a popular marketing
thereby establishing a new higher class
of Grade A buildings more aligned to
On the retail market, it said the overall
occupancy rate of purpose-built retail
total of 120 retail centre developments
New malls completed in suburban
locations are Carrefour Hypermarket
Kota Damansara, Axis Atrium, Subang
Avenue Promenade, Harbour Place,
Empire Subang Gallery, Kepong Mall
Sunway Pyramid Shopping Mall
These include One Mont’Kiara, 1
Shamelin Mall, First Subang, Citta
Mall, Setia City Mall and Jusco Bandar
Plaza on Jalan Bukit Bintang underwent a
RM100 million facelift and was renamed
In the industrial market segment,
WTW said industrial premises
transactions are active in Petaling Jaya,
Shah Alam, Subang, Glenmarie, Rawang,
These areas also evolved to
activities with certain sections in Shah
Alam and Port Klang known for logistics,
Rawang for manufacturing, Glenmarie
for motoring related industries and
parts of Petaling Jaya for showrooms
With the logistics industry an important
link in enhancing the country’s progress
in industrialisation, WTW expects
demand for warehouses and storage
space to increase in areas well served by
a good network of roads and highways
and which are easily accessible to
Meanwhile, DTZ Research said prime
continued to stay under pressure in view
It expects the retail market to remain
On the investment market, DTZ
Research said it enjoyed an active
trust deals with focus on retail and

Malaysia has some of the most liberal regulations in the region when it
Unfortunately the rules have been changed a number of times over the
last few years and there is still some confusion over the current policies particularly
The latest decision, by the Federal Government, was to raise the minimum property
purchased by foreigners were in the RM250,000 to RM500,000 bracket so this hit the
Many foreign property buyers found this out the hard way when they read that the
Initially several States decided not to follow the Federal Policy and retained the lower
And the Minimum Price is...
BY ANDY DAVISON

BY ANDY DAVISON
Legal Issues
The following article is intended to give
a general overview of some common
legal issues regarding the purchase of
property. We strongly recommend you
obtain the services of a good lawyer
when you buy property.
Property comes under the control of
the various State Governments, so
rules can vary depending on which part
of Malaysia you buy in. Although the
Federal Government passes national
regulations, the States have the option
of implementing these or not when it
comes to property matters. One example
is setting the minimum price at which
foreigners can buy property, where the
Federal Government raised the price and
initially some States chose not to follow.
Title
There are two categories of title in
Malaysia available for non-Malaysians.
Freehold (which gives the owner
full, permanent ownership of the
property) and leasehold (which allows
the owner to stay in possession for a
limited period). Most leaseholds titles
are originally for 99 years and can be
extended on paying a further sum.
A house receives a “title” once
completed and an apartment or
condominium is given a “strata title”. In
the case of new apartment buildings, the
strata title may not be issued for some
time after the building is completed.
Rules and Regulations
Sale & Purchase agreement
The purchase agreement for a
property is called the “Sale & Purchase
Agreement” (SPA or S&P). These are
fairly standard, but it is best to have
a lawyer representing your interests
before signing any agreements.
A memorandum of transfer also has to
be signed to transfer the title from the
seller to the purchaser. In the case of a
new development where the developer
does not yet have full title, the seller will
state in the SPA that this will be given as
soon as they have proper title.
Special Note for Malaysia My Second
Home visa holders: If you are planning
to move here under the Malaysia My
Second Home programme, you will be
eligible to make a lower Fixed Deposit
if you have already (before applying for
the MM2H visa) purchased a property
in Malaysia over RM1 million and do not
have any outstanding loan on it. If you
make a purchase after getting the visa,
then you can have your Fixed Deposit
reduced after 12 months on showing
evidence that you have bought and paid
for a house in Malaysia. In this latter case,
the value of the property is not a factor
relevant and you can have a loan on the
property as long as the cash amount you
have paid exceeds the amount you wish
to withdraw from your FD.
Approvals
For most property purchases, foreigners
are no longer required to obtain Foreign
Investment Committee (FIC) approval.
Foreign purchasers are still required
to obtain approval from the State
Authorities who will consider factors
such as the location of the property,
the type of property and in new
developments the percentage of total
units sold owned by foreigners. State
consent can often take six months and in
some cases longer.
Property Gains Tax
rate on disposal of real property is 5%,
subject to the provisions of the Real
Property Gains Tax Act 1976. No tax
property is disposed of after 5 or more
years of ownership.
In the 2012 Budget the tax was
increased to 10% if the property is sold in
Legal Fees
Value of property Rate
1st RM150,000 1.00%
Next RM850,000 0.70%
Next RM2,000,000 0.60%
Next RM2,000,000 0.50%
Next RM2,000,000 0.40%
Over RM7,500,000 (negotiable) >0.40%

The process of selecting your home can be an enjoyable yet
tiresome experience – especially if you are new to Malaysia
and its cities. But the question at the back of your mind
much am I eligible to borrow (for the purchase of the property)?”
business and as soon as you have made your purchase, you may
begin “hunting” for the best package. This process may take
several weeks as you search for the best rate, highest margin
and the most convenient way to bank. Applying for a Mortgage in
home country.
But how do you go about the whole thing and what do you
look for?
For Malaysians, the maximum MOF is 90% (and Bank Negara
Malaysia has imposed a cap of 70% from the 3rd loan onwards).
For expats, the MOF is divided into 2 categories – those residing
in Malaysia (with a Work Permit, MM2H Visa, Spouse Visa, etc)
and those who reside abroad. For those who reside in Malaysia,
the MOF starts at 70% and may go up to 90% depending on
income documentation and the location of property. For those
who don’t reside in Malaysia (no Visa status) the maximum
However, it is important to know that all loans come with
a bank valuation of the property. The MOF is based on the
Purchase Price or the Valuation – whichever is lower.
The MOF for Commercial Properties is normally 10% lower
compared to Residential Properties. The next thing to look into
is the Interest Rate. For many, this is the most important feature
of the Mortgage. However, there are many other features that
should be taken into account before deciding.
Interest rates in banks are computed on a Daily Rest Basis
(interest is calculated on the outstanding amount of the
Principal at the end of that day – as the loan amortizes over
time) as opposed to a Monthly Rest Basis calculation.
Interest Rates are determined by the Base Lending Rate (BLR);
which is set by Bank Negara Malaysia as the cost of funds plus
administrative charges for the bank. Due to the competition,
interest charged for mortgages, for the moment, is below the
BLR. Loans with Fixed Rates are also available should you prefer
not to depend on the BLR. The current BLR is 6.6%.
There are, of course, other features of a Mortgage to consider
such as the Lock-In Period (the minimum period of the loan
one would have to service), Facility Type (Term Loan, Flexible
Loan, or Overdraft Facility), Repayment Terms and so forth.
These features vary from bank to bank and make up an
important part of the Mortgage selection process.
The key criteria (from a Bank’s point of view) to approving a
Mortgage is the Income of the borrower(s). Income can be
derived from various sources and is divided into two categories;
self-employed. Deriving income for salary-earners is normally
quite straight forward. For those who are self-employed, though,
would require company documents along with bank statements
to “derive” income; as in businesses, income varies from
month to month, year to year. Additional income like Tenancy
Agreements (stamped), Fixed Deposits, Dividends from Equity,
Yields from Bonds and Pensions can be used to justify income.
The approval of the Mortgage by the bank takes anywhere
from 3 to 10 days, depending on the documents and
complexity of the application. Upon approval, a Letter of
conditions will be issued. Upon acceptance (the signing of the
lawyer to sign the Facilities Agreement (a contract between
the borrowers and Bank). The disbursement of the funds
would normally take from 10 to 12 weeks after signing the
Facilities Agreement.
First Capital Solution Sdn Bhd is a Mortgage Broking company
Mortgages among others. With our alliances to several banks,
from which to choose, without having to trouble themselves
shopping around. We also provide value-added services for our
clients. Our services are au gratis.
For more information, call 03-7722 2211 of email hareshvh@
BY HARESH HASSARAM, FIRST CAPITAL SOLUTION SDN BHD
Financing your
Property

BUYING
As an individual, the purchase of a home
is the ultimate satisfaction. A place we go
home to. A place our children will grow
up in and a place that they will always
have a roof over their heads.
Affordability
banker to determine what range of
or joint current incomes sustain a
loan (Do not forget the small amount
you would like for improvements and
renovations).
as there are a variety of schemes that
are available and you will have to
Location
(As I always advise my friends, buying
a home is buying a lifestyle and
lifestyle). Make sure the location
to amenities, schools and public
transport.
Type of Property
a fair bit, and require security,
condominiums are an excellent choice
with the security, facilities and, of
course, the beautiful views some of
enjoy having pets and a big garden,
I guess landed properties will be your
preference.
Sourcing for properties
newspapers or online.
Important Questions to ask
your friendly agent
(if leasehold, how many years left on
the lease?)
Renting vs. Buying

include?
cabinets?
Arrange for viewing
bit of natural lighting.
inquire if approvals
were obtained.
done to the wiring and plumbing
(for homes more than 15 years).
for termite infestation, how recent
was the roof changed and quality
change to suit your lifestyle.
and is the price negotiable?
After each viewing, determine whether
the micro location suits you, whether
you like the property and how much
it will cost you to do it up to suit your
liking. Also remember you might not be
able to do all the renovations at one go,
so focus on the main ones (i.e. wiring,
plumbing, painting, built ins). Make
sure the decision is based on what is
your liking and compatibility with your
lifestyle. The decision is yours and your
good to back up your decisions with
ample information, a structured decision
making process and reliable advice.
RENTING
furniture. The latter usually comes with
standard facilities such as ceiling fans,
air conditioners, hobs, hoods, hot water
reticulation, washing machine, dryers
good areas boast excellent facilities such
service, adequate parking, convenience
stores and landscaped gardens. In line
with recent global changes, security is
very important, thus, the security in most
do you start?
Location
recreational facilities is important.
of Jalan Ampang where many
areas include Mont Kiara, Ampang,
These upmarket suburbs have long
equipped with plenty of amenities.
landscapes.
Facilities
so it is best to secure a school before
could face a long journey each day
Type / Price of rentals
Rental procedures
Deposit.
(this could vary from property
to property).
stamped as a form of tax imposed
by the Government of Malaysia. It is
necessary for a tenancy agreeement
to be stamped so that it can be used
The amount is then multiplied by the
payable by the tenant.
Utilities
electricity consumption, telephone
usage, internet subscription, satellite
common areas for condos is already
factored into the rental. (If there are
changes in quit rent and assessment
by the authorities, tenants are liable to
top up their deposits).
Termination of tenancy before
agreed term
the injured party be compensated
for the remainder of the tenancy,
but depending on the landlord there
might be an exit clause that will see
the injured party compensated at least
and covering losses.
Malaysian rental rates are cheap.
yearly renewal.
Previn is the CEO of Zerin Properties,
a Licensed and Registered
Estate Agency Service Provider.
For feedback and inquiries, e-mail
previn@zerinproperties.com

FOR
SALE
04 953 3108
100% Available to Foreign Buyers
Completion May 2012
SEAFRONT LUXURY APARTMENTS

advertorial
Langkawi is often referred to as Asia’s most livable island.
It’s nestled in the Andaman Sea just a short north-
and strong governmental emphasis is placed on nature
conservation. The island is abundant with stunning beaches
upmarket infrastructure and interesting excursions are
abundant.
It served as the luxurious backdrop of the recent launching
features tropical landscaping with sweeping views across the
from the Langkawi International Airport.
Edwin Jenkins.
“The units started selling a year ago through word of mouth.
Langkawi condo an excellent investment.
Laguna Langkawi Launches Freehold
Luxury Condos for Sale
laudable observations.
curvaceous deck area.
internet connections deliver comfort and convenience in
Langkawi’s abundant sunshine flows into all condo living
areas and natural light is abundant. Open floor plans offer
the discerning international buyer.
unmatched environment both natural and man-made as
buyer combine to make living at The Laguna Langkawi truly a
For more information, email edwin@lagunalangkawi,
call 006049533108, or visit www.lagunalangkawi.info.

Most expats coming to work here
for two years or more choose to
rent property. Most leases’
terms are for a minimum of two years
with an option to renew.
There has been a transformation of the
rental market in the last ten years with
many very attractive, modern apartment
developments coming on the market.
an apartment over 2000 square feet, it is
that size.
Unlike some countries, short term rentals
of apartments are not that common in
a few places on the internet. For those
who are here for shorter assignments,
then a serviced apartment is usually the
best option. There are some excellent
choices in Kuala Lumpur but in other
In some cases, negotiating a long term
Advice for those
Looking to Rent Property
rate at a hotel may be your only option.
If you are looking to rent an apartment
for two or more years, then its best
to use a real estate agent rather than
trying to do it through newspaper
advertisements. You should be very clear
with them about what type of place you
are looking for as some have a tendency
to take you to places which are outside
your budget or which do not meet your
you want, make sure you emphasise
at the beginning that you have no
interest in viewing anything outside your
expectations is the quality of “furnished”
apartments. Often these have the barest
minimum of furniture and frequently it
is of poor quality. If you are looking for a
furnished place, then you will either have
to lower your expectations or make it
very clear to your agent that you will only
take a place which is furnished up to a
high standard. Naturally, this will mean a
BY ANDY DAVISON

smaller selection and higher rentals.
If you want to know about an
apartment building you are going to
view then it is worth visiting a website
called www.propwall.my. It provides
good write-ups about most of the
apartments in the KL area as well as
an indication of the current rental and
selling prices.
Make sure you allow enough time to
see several places so that you have
some basis for comparison. Most expats
choose to live reasonably close to the
place they work and if they have children
somewhere near their school makes
good sense. Most international schools
start early, so if the distance is too far,
your little darlings will be leaving home
before it gets light.
If you are going to be working in a major
city like Kuala Lumpur or Penang, be
hour and considerably worse when it
rains, so check the travel time during
normal commuting hours.
Most expats choose to rent apartments
and some of the newer ones have
excellent facilities. This will usually
include a swimming pool (sometimes
more than one), tennis court,
badminton court, gym and even squash
courts. Barbecue areas and children’s
playgrounds are also quite common.
For those who want a landed property
with a garden and possibly a pool, then
a gated community is probably your best
bet. House break-ins are quite common
in larger cities in Malaysia and if you are
living outside a gated community then
you will need a good alarm system and
will need to follow some basic common
sense rules to avoid getting robbed.
Procedure for Renting
After agreeing on the terms and
conditions of the lease, you will be
required to pay one month’s rent as
“earnest deposit”. This should be done
which will include the basic conditions
of the lease. This will eventually be used
what additional payments are due and
when they should be paid.
Within seven days you will be expected
to pay a further two months rental as
“security deposit” and half a month’s
rent as “utility deposit”. These amounts
will be held by the Landlord until the
lease expires at which time it will be
refunded less the cost of any damages
made to the premises or to settle any
unpaid bills relating to the period of
the tenancy.
Early Termination
“Diplomatic Clause”
In Malaysia, it is common for company
rental agreements to include a clause
which allows early termination of the
lease in the event the occupant is
reassigned out of Malaysia or the State
where he is leasing the property.
This is often referred to as the
“diplomatic clause”. It is sometimes
required that the tenant show evidence
he is leaving such as cancellation of the
work permit before the deposits are
returned. Usually the lease agreement
stipulates that this clause cannot take
of the lease. In addition, it is usually
necessary for the tenant to give two
months written notice or pay two
months rental in lieu of notice.
Obtaining a Refund of your
Deposit.
Unfortunately, there some landlords in
Malaysia who are very reluctant to return
deposits. Once you leave the country, it
is very hard to resolve this.
One way to minimise the risk of losing
your deposit even though you have
looked after the house carefully is to ask
months before your lease expires and say
you would like to agree how much of the
deposit he wants to keep subject to any
damage incurred after his visit.
This will give you a good idea of whether
their visit, you are convinced the landlord
is being unreasonable then you have the
option to hold back or slow down rental
payments for the last two months.
Your lease will almost certainly say you
the deposit so strictly speaking this will
be against the terms of the contract.
For this reason, it is best to involve a
third party (like your real estate agent,
friend). If they share your view that
the landlord is being unreasonable,
then slowing down or stopping the
option. An independent witness will
strengthen your argument and in the
case of the real estate agent they may
be willing to hold your last two months’
rent until negotiations are concluded
with your landlord.
You should also be aware of what your
contract says about the circumstances
under which the deposit can be
withheld. It’s a good idea to check this
before signing the contract. Generally
there cannot be any deduction for
normal wear and tear. However, if you
have put up paintings then you must
repair the damage to the wall and this
may involve some repainting.
…Make sure you
allow enough time
to see several
places so that you
have some basis
for comparison...

Background
The Expat Group conducts regular
surveys of the resident expat community
to gain a better understanding of the
lives they lead and their views about
various aspects of living in Malaysia.
As the leading company reaching the
international community, we have the
largest database of resident English-
speaking expats.
In October 2010, we conducted a survey
among some 200 expat families covering
their views on Malaysian property and
their experiences. The survey included
information on the type of property they
currently occupy, their rent or purchase
price, their experiences buying or renting
and their views on the property market.
The survey included working expats
and people who have chosen to retire
here, most of the latter group living here
under the Malaysia My Second Home
(MM2H) programme. In many cases,
their responses were the same but in a
As can be seen from the charts on this
page, the majority of respondents were
Western expats and it is possible if more
Asian expats were included the results
For example, we know, from other
research, that although some Japanese
expats have bought property in Malaysia,
most choose not to do so.
It should also be noted that this survey
was sent out by e-mail so only included
those expats who have submitted their
e-mail addresses to us – around 3500 or
60% of the total subscription base.
Finally, since participation was voluntary
it is less statistically valid than a survey
where we randomly picked expats
living here. However, it is not clear
that this would have produced very
Property Survey
Key Findings
is the large number of expats who
choose to buy property or are thinking
about buying property. Despite recent
much cheaper property prices than
surrounding countries. Prohibitive prices
in popular expat cities like Singapore,
Hong Kong and Tokyo mean the vast
majority of expats living in those cities
choose to rent.
Most expats choose to rent or buy
apartments. This is true all over Asia
often because there is a limited supply
of houses in major cities. Malaysia
relatively easy to rent or buy a house
here. Apartments are also popular
because they often provide better
security, there is less maintenance
involved, and more modern
range of facilities.
The respondents’ views on property as
an investment varied although among
those who have chosen to buy houses
there is clearly a lot of interest.
Respondent Details
Total participating 200
Reason Here
Working 63%
Retired /MM2H 37%
Location
KL / Selangor 73%
Penang 14%
Sabah / Sarawak 6%
Other Peninsular Malaysia 7%
Time in Malaysia
Up to one year 6%
From 1 to 5 years 44%
From 5 to 10 years 21%
Over 10 years 29%
Top 10 Nationalities
Responding
1 UK
2 Australia
3 India
4 United States
5 Germany
6 Canada
7 Netherlands
8 Switzerland
9 Singapore
10 Sweden
Total Countries - 26
the expat experience
BY ANDY DAVISON

Where do Expats Live?
Most expats and retirees choose to live
in apartments with three quarters of
Malaysia My Second Homers (MM2Hers)
living in apartments and almost two
thirds of working expats. Many MM2Hers
tell us they prefer apartments because
they like to travel and it’s easier to lock
them up and leave.
Working expats also prefer apartments.
not to rent houses because of the higher
risk of burglaries and it is true that house
break-ins are quite common in Malaysia,
particularly in the large cities.
Expats who choose to live in houses
often choose gated communities or
install modern security systems.
The average rent paid by expats overall
was RM5,000 with the majority of
expats paying under RM4,000 a month.
However, those retirees who chose to
rent paid nearly 30% less on average.
One reason is that working expats are
more likely to have children living with
them and often need larger places.
Another reason is that there are still a
large number of working expats who
have their rents fully paid or at least
subsidised by their companies.
By Malaysian standards, RM8,000 is
quite a high rent but if you compare it
to rentals paid in Singapore or Hong, it
would be considered on the low side.
We also asked expats who rented what
they thought of their landlords. We
often hear stories about expats having
problems with getting landlords to
attend to things or recovering deposits
at the end of their lease.
Generally, the survey showed expats
were happy with their landlords with
20% giving an average rating. Only 10%
said they were not happy with their
property owner.
Expats and Real Estate Agents
Most expats (nine out of ten) used
rent or buy. Overall, it showed that
service they received than were not.
However, there were some respondents
who expressed dissatisfaction with
the service and took the time to write
comments detailing their frustrations.
It’s probably true to say that this is a
profession which comes under a fair
amount of criticism whichever country
you happen to be in.
The most frequent criticism was that
agents showed places which did not
expats. One expat wrote, “I had 13
agents and none of them were able
to listen and to show me the types
of property I requested.” Another
complained that, “he wasted a lot of
time going to places of no interest
at all”. Others felt the agents did not
do a good job of representing their
interests. Clearly since most agents earn
their commission from the property
owner they will primarily focus on their
interests. It’s important for people using
real estate agents to recognise this.
Monthly
Rental
Under RM4,000
RM4,000 to
RM8,000
Over RM8,000
Average Rental
MM2H
71%
17%
12%
3,800
Non
MM2H
56%
21%
23%
5,350
Market knowledge
Understanding your needs
General service level
23%
32%
27%
50%
42%
48%
27%
26%
25%
5.7
5.3
5.6
Real Estate
Agent Evaluation
Below
Average
Average Above Score
Out of
10
Type of
Residence
Apartment /
Condominium
Terraced House
House
MM2H
75%
9%
16%
Non
MM2H
62%
11%
27%
Sunway South Quay

Expats Planning to Buy
When asked what type of property they
A home to live in 53%
An investment property 33%
A holiday home 14%
Apartment / Condominium 47%
Terraced House 14%
House/Bungalow 28%
Land Only 11%
Existing Property 36%
New Development 31%
Build My Own 5%
Undecided 28%
Expats Who Have Purchased
Property
Price Paid MM2H

We then asked what features were
considered important to the buyers.
We suggested various facilities and
asked respondents to rate their
importance or suggest other features
which we had omitted.
The next chart shows how they ranked
the various features but the clear
winner was pleasant views. This is one
area where a buyer has to beware. The
Malaysian property boom has meant
the construction of many new high rise
buildings and a number of buyers have
been shocked when a piece of land they
were advised would not be developed
suddenly becomes the site of a new
high rise completely blocking their
beautiful view.
Both landscaping and balconies were
not on the list of “must haves” for
most developers although that is now
changing. Large balconies are very rare
as Malaysians generally don’t look for
them when buying apartments.
this was an important feature to attract
foreigners, particularly Westerners,
who enjoy sitting outside, many of
them looked sceptical and some clearly
doubted our opinion. Most upmarket
high rises now include a reasonably
sized balcony and the developers of
apartments and landed homes usually
complete the landscaping before
handing over the properties. Swimming
pools are very popular, particularly with
Western expats.
The proximity of international schools
ranks high for expats with kids but
since many respondents do not have
children in Malaysia, it received a lower
overall ranking.
In addition to the ones we listed, expats
said they were concerned about security
and maintenance. Both of these can vary
dramatically from apartment building
to apartment building and prospective
buyers should always check this out.
Is Property A Good Investment?
The general view among the
respondents was that property is a good
investment with only 19% of respondents
feeling it was not. However, there was a
sizeable number who were not sure. The
biggest concern was the oversupply of
property in Malaysia particularly when
it comes to apartments. Several expats
felt that landed property was a better
Is Property A Good Buy
Yes 45%
No 18%
Not Sure 37%
investment and much more likely to
appreciate in the future.
A number of expats felt that buying new
property from an established developer
was probably good value particularly in
some of the gated communities. Most
property and location was important if
you were looking for a reasonable return.
Others were concerned about the
quality of some property companies.
V. Page, who lives in Penang, felt there
is “gross oversupply and poor quality
workmanship” in many places in Penang
and was not keen to buy.
Linda Robinson, who lives in Sabah, said
she bought from a bad developer and is
because of the increase in the minimum
price at which foreigners can buy.
Gudrun Neinaber felt property was a good
investment “because of the low prices
and the ease of getting a mortgage”.
The fact that so many expats have
decided to buy property makes it clear
that those that are planning to stay
here longer term feel it makes sense to
purchase rather than rent.
Important features
When Buying
1 Pleasant view
2 Attractive Landscaping
3 Balconies
4 Swimming pool
5 Shopping close by
6 Gym
7 International school nearby
8 Sea close by
9 Golf course close by

BY ALI ZARA
Our latest survey asking expats
what they like about living in
Malaysia was a repeat of the
one we did in 2003, when we asked
they liked about Malaysia. We did not
suggest any replies so expats were free
to give any answer they wished. For the
meant we had to group the responses
into several broad categories.
In order to retain comparability with
the last survey, we used the same
methodology in assigning categories. In
the following paragraphs, we will explain
how we grouped the answers.
The chart on the next page gives a
breakdown of the 353 expats who
responded to our latest survey. The
expat retirees living here with just over
a quarter of the respondents being over
the age of 60 and most are not working.
However, this did not make much
a number of them made references
to the Malaysia My Second Home
programme and less references to issues
relating to business.
As can be seen from the chart, the top
ten was very similar to the ranking
for the last survey which shows that
Malaysia continues to maintain its
attractive qualities. There were a few
changes which I will go on to clarify.
For “likes” about Malaysia, “people”
continued to rank the highest. A number
of expats referred positively to the rich
cultural diversity, which is almost unique
to Malaysia. The friendliness of most
Malaysians and the widespread spoken
Why Choose
Malaysia?
English were other positive factors. Both
longer term working expats and Malaysia
My Second Homers often tell us they
have many local friends. This is one thing
other countries, particularly in Asia.
Weather continues to rank highly and
a bit unpleasant, there was widespread
agreement that year round warmth and
sunshine is a major plus. This is ironic
because many global surveys penalise
Malaysia because of the climate. The
Economist Intelligence Unit gave it a
very low score in a survey of the best
places for working expats to live. When I
told them expats liked the weather they
insisted the high humidity made it very
unpleasant! Even the popular website
“International Living”, which ranked
Malaysia the best place to retire in Asia,
gave a miserable 40 points out of 100
for the climate. By comparison the UK
received 60 and Australia – which at
times can top Malaysian temperatures
– got 87! Food was also an important
plus factor with people mentioning the
wonderful variety and great restaurant
prices. Others commented on the
increased selection of international
cuisines. Malaysia is certainly fortunate to
have three such wonderful local cuisines
as Chinese, Malay and Indian. I have not
met many expats who don’t like any of
them and most seem to enjoy all three.
Not surprisingly the cost of living was
on most people’s list. Some people
commented on recent price increases
excellent value. The availability of so
many holiday options was mentioned

on the list of likes. Malaysia’s excellent
central location makes it easy to visit
many surrounding countries and a
few respondents mentioned Air Asia’s
contribution to low cost connectivity.
Quite a few people found the quality of
life in Malaysia to be a very attractive
factor. Expats generally enjoy the
lifestyle here, particularly in KL and
many referred to the “ease of living” in
Malaysia. The country’s natural beauty
and abundant wildlife were a factor
for many expats who enjoyed living in
a country with such a rich landscape.
wonderful beaches on the east coast,
the many beautiful islands, the jungles
and rainforests, the underwater beauty,
as the historic sites. A few people made
and eco systems of Sabah and Sarawak.
The infrastructure ranked eighth but
was mentioned by quite a few people.
In 2003, most of the comments which
comments about the road system.
This time many people just wrote
“infrastructure” and there were more
general comments, although there
were still frequent references to the
good road systems. Certainly Malaysia
has done an impressive job of building
highways across the country, which are
superior to those available in many other
Asian countries.
Shopping was mentioned by a number
of expats and if more women had
responded I think it’s safe to assume
this would have received a higher score.
Anyone who has been living here for the
last twenty years could not have missed
the explosion of shopping malls not to
mention up-market boutiques. Kevin
Livesey said: “General living conditions
have improved tremendously these last
15 years with international food and
class”. Property ranked 10th on the
list replacing the “economy”. In 2003,
many people mentioned the stable
economy but this was hardly likely to
get much mention this time, given the
recent global upheaval. Comments
regarding property covered a range of
topics from the value for money to the
spaciousness of apartments. I recall
80s with a generous rental allowance
and asked to see apartment of around
3000 square feet.
The real estate agent said she wasn’t
sure if there were any that size in KL!
Now there are even apartment buildings
where the units start at that size.
The Malaysia My Second Home
programme was liked by many
people who carried that visa. Others
commented the private health care
system and quality of international
schools in Malaysia. A few liked the low
taxes – zero for MM2Hers on foreign
income! Anita Murray from South
America enjoys “local kopi susu from a
Chinese kopi shop” and “meandering
around the kampongs”.
Perhaps Zoltan Kitka summed up the
positive comments best by writing
“overall, this is one of the best places in
the world to live in. A good standard of
living with beautiful scenery, great food
and nice people.”
The Things Expats Like
Most about Malaysia
Likes – Weighted
Replies
The above chart shows the responses
based on the frequency of mention plus
a weighting for the position in which
2010 Survey 2003 Survey
Shopping 2%
Property 1%
Infrastructure 3%
Nature 6%
Quality of
life 6%
Location /
Holidays 9%
Respondents
Total 353
Nationality
Years in Malaysia
Gender
Marital Status
Age
European 55%
Asia 11%
Rest of the world 5%
Up to 1 year 8%
1 to 4 years 43%
5 to 10 years 21%
Over 10 years 28%
Male 73%
Female 27%
Married 79%
Single 12%
20 to 30 5%
31 to 40 21%
41 to 50 21%
51 to 60 26%
Over 60 27%
Other
8%
People
21%
Weather
15%
Food
15%
Cost of
Living
14%

Kuala Lumpur has become one of Southeast Asia’s
neighbourhoods of Kuala Lumpur such as Mont Kiara and
and the Kuala Lumpur International Airport (KLIA). Apart from
Kuala Lumpur’s best golf courses.
recreational space. Kenny Heights Sanctuary commissioned the
playground.
Heights Sanctuary emanate a natural atmosphere of tranquility
For more information, visit www.kennyheights.com.my
Pool Pavilion, Kenny Heights Sanctuary Bedroom
Living Lounge

Glomac Berhad
Bandar Raya Developments Bhd (BRDB)
A W A R D
W I N N I N G
DEVELOPERS
There are tons of property
developers in Malaysia,
and it is sometimes hard
for expats to decide which
companies they can trust.
In this section, we highlight
some of the established names
in the property industry. These
property developers have
all been recognised and won
awards for the quality and
ingenuity of their work.
GuocoLand (M) Berhad
Sime Darby Property Berhad
Sunway Integrated Properties
Mulpha International Bhd
Gamuda Land (Valencia)

award winning developers
Bandar Raya Developments
Berhad (BRDB), is a developer
that is more than familiar with
the expat communities in Malaysia,
and most expats are well-acquainted
with the neighbourhood BRDB calls
BRDB’s core businesses are the
development of residential and
commercial properties, property
With more than 45 years of experience
in developing the landscape of Malaysia,
BRDB is one of the country’s oldest and
incorporated in 1964, and in 1968 was
have allowed it to experience a long list
The eclectic neighbourhood of Bukit
Bandaraya in Bangsar, the integration
of tradition and modernism in the
midtown KL, and the transformation
of a mature township that is Permas
Jaya in Malaysia’s southern peninsular,
from and added to BRDB’s wealth of
that BRDB created, is a prime example of
the developer’s capability, dedication and
visit to one of BRDB’s many residential
developments in the area all attest to
that which BRDB strives for, and has
consistently achieved, the cultivation of a
Penaga, Palmyra, Inara and now One
Menerung, BRDB has been consistent
in delivering ever-better luxury
residences for those living in what is
design in each of its developments,
Bandar Raya
Developments Berhad
(BRDB)
KLCC seen from The Troika pooldeck

the implementation of innovative
features, and strict attention paid to
the most minute of details, BRDB has
managed to build a reputation in the
industry and attract customers and
,
neighbourhood mall, a recent
boutique fashion and some of the best
the entertainment scene with patrons
It is these tenets of a cosmopolitan
lifestyle, intelligent design and lasting
this commitment, BRDB has consistently
been placed in The Edge’s Top Property
While Bangsar will always be the
home of BRDB, it is now spreading its
wings to new areas and new markets,
with the aim of recreating the unique
The Troika
The location is undeniably attractive
and already imbued with an
atmosphere that is suited to a BRDB
development – cosmopolitan, stylish
and functional – it was an easy choice
as the site for a truly remarkable
The Kuala Lumpur City Centre is
now considered the capital’s most
twin towers in the world, the Petronas
Twin Towers, leading conglomerates
and international companies have
headquartered here and share prime
real estate with 5-star hotels and
exquisite dining and entertainment
shopping options that can be found
within the vicinity of The Troika, with
more than enough to sate the most
In between The Troika and the Petronas
Twin Towers lies the KLCC Park; a
20-hectare oasis of greenery that once a
year bursts into a symphony of light on
Sales gallery, The TroikaCourtyard, The Troika
Bangsar Shopping CentreOne Menerung
For symphonies throughout the rest of
the year, the Malaysian Philharmonic
Orchestra display their skill at their home
With The Troika, BRDB’s dream was
to create the city’s most elegant and
desirable condominium, right in the
heart of the capital’s most prized
Foster & Partners, were the chosen
artists, the perfect ones to breathe
life into the new residential icon, and
they were keen on an opportunity to
for their reputation and impressive
portfolio, but because they place great
emphasis on the social dimension of
concrete, each building is designed to
of land, The Troika has a range of
creating a well-rounded development,
commercial and retail spaces have
have been taken up by F&B tenants,

award winning developers
and the commercial spaces are being
environment.
the same year.
6 CapSquare
distinguishes it as a unique and distinctive
the olden days are ever present in the
modern architecture may sit beside
gorgeous colonial buildings. And these
its midst.
6 CapSquare
6 CapSquare master bathroom

Verdana
as international schools such as the
the land is dedicated to landscaping and
Tennis court, Verdana
FUTURE PROJECTS
Medang Serai
its piece de resistance
the neighbourhood.
Seri Kembangan
landed residential development. The
aim is to create a neighbourhood
Puteri Harbour
southern peninsular is a marina

A young resident teeing off at Valencia.
Pathways on undulating terrain,
surrounded by ample green.

PIM_2012

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