Malaysia Property Trend
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Malaysia - Truly Asia
Malaysia is a country located at Southeast Asia, with an equatorial climate and also a culturally diverse nation. It is also separated into two regions, the Peninsular (West) Malaysia and the Borneo East Malaysia region. The Peninsular shares its borders with Thailand up north and Singapore down south of it. The East Malaysia region is separated by the South China Sea and shares its border with Brunei and Indonesia. There are a total of 13 states and 3 Federal Territories (Kuala Lumpur (KL), Putrajaya and Labuan), where KL is the Capital City of the country and Putrajaya is the nation's administrative centre. The time zone is UTC +8. The national population is currently over 34 million (as of 2023), it consists of 3 main races - Malay (60%), Chinese (20%) and Indians (5%), and also the local indigenous people known as Bumiputera (15%) - percentage as approximation figure. Malaysia officially recognize Islam as the religion of the country, however, it allows the practice of other religions to non Malay / Muslim citizens. As such, there are various religious practices and festivals held throughout the country yearly to celebrate the culturally diverse country. Language wise, Bahasa Malaysia is the nation's official language, but majority are also able to communicate in English. Other popular languages spoken are Mandarin among the Chinese, and Tamil among the Indians. Malaysia practices parliamentary democracy with constitutional monarchy. The Yang di-Pertuan Agong (YDPA) is the Supreme Head of the country, which one will be elected once every 5 year term basis from the 9 Kings of the states in Malaysia. The YDPA's role has been largely ceremonial since changes to the constitution in 1994, picking ministers and members of the upper house, as well as being the Head of Religion (Islam) within the country. The country's law are governed by the Federal Constitution and the parliament system, which is headed by the Prime Minister of Malaysia. Malaysia has a total approximate 330, 000 km square land. The local climate is equatorial and characterized by the annual southwest (April to October) and northeast (October to February) monsoons. The temperature is moderated by the presence of the surrounding oceans. Averagely in Kuala Lumpur, temperature is between 26°C to 34°C. Humidity is usually high, and the average annual rainfall is 250 cm (98 in). There are little to no natural disasters occurring within the country besides landslides and floods usually, as the country is not located in any tectonic lines zone. Malaysia's economic ranking is the world's 36th-largest economy by nominal GDP and the 31st-largest by Purchasing Power Parity. In 2017, the large service sector contributed to 53.6% of total GDP, the industrial sector 37.6%, and the small agricultural sector roughly 8.8%. Malaysia has a low official unemployment rate of 3.9%. Its foreign exchange reserves are the world's 24th-largest. It has a labour force of about 15 million, which is the world's 34th-largest. Malaysia is an exporter of natural and agricultural resources, and petroleum is a major export. Malaysia has once been the largest producer of tin, rubber and palm oil in the world. Manufacturing has a large influence in the country's economy, although Malaysia's economic structure has been moving away from it. Malaysia remains one of the world's largest producers of palm oil today (2024). In 2020, Malaysia exported high-tech products worth USD92.1 billion, the second-highest in ASEAN, after Singapore. The country's infrastructure is well developed, with highways connecting to airports and seaports. Fresh water is easily sourced by tap, electricity is managed by Tenaga Nasional Bhd in the Peninsular, whereas the Borneo East Malaysia has another two operators, Sarawak Energy and Sabah Electricity respectively. Telecommunications wise, the country is operating with largely 4G connectivity with developing infrastructure to adopt 5G nationwide. Tourism is the third-largest contributor to Malaysia's GDP, after the manufacturing and commodities sectors. In 2019, the sector contributed about 15.9 per cent to the total GDP. According to the World Tourism Organization, Malaysia was the fourteenth-most visited country in the world, and the fourth-most visited country in Asia in 2019, with over 26.1 million visits. Malaysia was ranked 38th in the Travel and Tourism Competitiveness Report 2019. Its international tourism receipts in 2019 amounted to USD19.8 billion. Malaysia's healthcare system is considered to be among the most developed in Asia, which contributes to its thriving medical tourism industry. Revenue from medical tourism to Malaysia grew from RM 299 million in 2008 to RM 527 million in 2011 to RM 1.7 billion in 2019. Medical tourism in Malaysia was ranked by Nuwire as one of the top five destinations for health tourism in the world in 2008. Malaysia was also recognized as 2015 'Destination of the Year' by the International Medical Travel Journal (IMTJ). To have a further understanding of the country, view the recommended videos below.
Credits: Honest Opinions of Malaysia from Foreign Tourists! - Published Oct 2024 - Ben Fishermin
Credits: Visit Malaysia Official Video - Published 2020 - Malaysia Truly Asia
Malaysia's Real Estate Industry
Malaysia adopts the Torrens system in its real estate industry, where the registered name(s) on a property title are recognized as the rightful owner(s). Land titles in Malaysia are classified into three main categories based on usage: agricultural, building, and industrial. In Peninsular Malaysia, land planning and zoning are governed by the Town and Country Planning Act (TCPA) 1976, which establishes a legal framework for systematic development control and uniformity in zoning regulations.
Land ownership in Malaysia falls under freehold or leasehold titles. A freehold title grants permanent ownership with no expiry, whereas a leasehold title is limited to a fixed term—typically up to 99 years—after which the land reverts to the respective state authority. However, leasehold tenure can be extended upon renewal with a monetary payment. As land is a state matter, land titles and ownership regulations are managed by each state government (local authority).
Malaysia also enforces special land ownership policies, including Malay Reserved Land (MRL) and Bumiputera Land Lots. MRL can only be owned by Malays, and its transfer to non-Malays is nearly impossible unless an equivalent piece of land is provided as a replacement. Bumi Lots, on the other hand, are properties reserved for Bumiputeras, but they may be sold to non-Bumiputeras under specific conditions. It is essential for buyers to verify these restrictions before purchasing a property.
The Malaysian government actively supports and regulates the real estate sector through various policies to ensure affordability and project stability. Initiatives such as First Home Buyer Schemes and Affordable Housing Policies aim to help Malaysians achieve homeownership. Additionally, the government monitors the financial health of developers to mitigate risks associated with abandoned projects.
The push for green energy and sustainable building concepts is gaining momentum in Malaysia's industrial sector, with increasing emphasis on eco-friendly developments expected to grow further in 2024 and beyond
Foreigners (non-Malaysian citizens) face restrictions when purchasing residential properties, primarily through minimum price thresholds, ensuring that lower-cost properties remain accessible to local buyers. Since land regulations vary by state, potential foreign buyers must check the specific guidelines of the respective local authorities. To facilitate long-term stays and investment opportunities, the government offers the Malaysia My Second Home (MM2H) program, which provides a renewable 5-year multiple-entry visa for eligible foreigners. This program also allows participants to start businesses in Malaysia, making it an attractive option for expatriates and investors alike.
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Kuala Lumpur
Kuala Lumpur is the capital city of Malaysia and is also known as the heart of the country as it serves as the cultural, financial, tourism, political and economic centre of Malaysia. Its surrounding urban areas form the most industrialised and economically, the fastest-growing region in Malaysia. Greater Kuala Lumpur, also known as the Klang Valley, is among the fastest growing metropolitan regions in Southeast Asia, both in population and economic development.




Penang
Penang is also known as the Pearl of the Orient and has two parts: Penang Island, where its capital city, George Town, is located, and Seberang Perai on the Malay Peninsula. The Penang Bridge and the Second Penang Bridge connects these halves together. Despite its small size, Penang has one of the most robust economies in Malaysia.




Johor
Johor Bahru is the capital city and the economic centre of the state. Singapore, its neighboring country, lies across a 1km Causeway Bridge. Johor Bahru is also one of the anchor cities of the Iskandar Malaysia development corridor that covers much of southern Johor, which is the country's first and largest special economic zone by investment value.