Malaysia is set to become the next possible destination for investors from Singapore, according to a government official from the middle-income economy while citing actions taken to strengthen the business environment.
“With housing prices in Singapore escalating, Singapore-based investors are looking for neighbouring investments that offer strong alternatives with less entry barriers,” said Chris Tan, Director of Performance Management and Delivery Unit (PEMANDU), who was quoted by Singapore Business Review.
“Kuala Lumpur has recently been experiencing a spike in transaction volumes that are reflected by a 10 percent increase in residential property prices. This is a strong point the Malaysian government is vouching for its promising property sector.”
The forum, “Invest in Malaysia, Invest in Kuala Lumpur”, invited leaders across the real estate sector to talk about growth opportunities in Malaysia.
According to Singapore Business Review, the Malaysian government launched the “Government Economic Transformation Program” (ETP) in its attempt to shift its economy from middle-income to high-income. It emphasises robust partnership with the private sector to improve the delivery system and build a healthier environment for investments.
The programme comprises three major initiatives, including strong privatisation and public-private partnerships (PPPs), setting up a facilitation fund that will provide support to private sector of high strategic importance and striking a balance between the government, government-linked companies and the private sector.
Mr. Tan noted that the government requested the private sector to handle the majority of its infrastructure projects. Currently, around 92 percent of the projects are dependent on private companies but are still monitored by the government to ascertain wise allocation of resources.
“In building stronger economic atmosphere, the government of Malaysia does not merely talk about vision, mission and strategic plans. We have programmes, instead of plans,” Mr. Tan said
Malaysia, considered one of the “four tigers” along with Singapore, Korea, and Taiwan in the early ‘80s, aims to achieve a high-income status by 2020, which is defined by the World Bank as a country that enjoys a high income per capita of S$15,000.
Mr. Tan believed that Malaysia is halfway towards this goal, with the current income per capita of S$7,500 expected to double in the next 10 years.
“Every part of the country urban or rural, regardless of race needs to have sustainable businesses,” Mr. Tan noted.
Source : PropertyGuru – 11 May 2011