Malaysia Tourism and Real Estate Industry to Heat Up in July
Kuala Lumpur: The MH370 incident has impacted Malaysia’s tourism and real estate industry negatively, but the highly diversified market of Malaysia, strong development fundamentals, and decades of bilateral ties with China and the rest of ASEAN will help Malaysia overcome these challenges. Renowned Malaysia real estate consultant Dato’ Sri Gavin Tee believes that the market will pick up speed once again in July this year, continue to gain steam towards a historical high in 2015, and onwards to become the hottest investment destination in Asia in 2018.
To further defuse the negative impact of MH370 on the bilateral ties between China and Malaysia, SwhengTee International Real Estate Investment Club founder Dato’ Sri Gavin Tee and Real Estate Malaysia Magazine has co-organized a talk titled Impact of MH370 on Tourism and Real Estate in Malaysia as the first salvo in a series of activities by the Malaysian-Chinese MH370 Support Group. In order to better reflect the group’s aim to stimulate the positive development between the two nations, Tee also announced the rename of the support group to Malaysia-China Friendship Action Group.
According to Tee, who is also the Deputy Chairman of Fiscal & Economic Research Committee of the Malaysia-China Chamber of Commerce (MCCC) and the Chairman of International Film Development Committee founded by the Malaysian Chinese Cultural Society (MCCS), this event is held with the support of various parties including, amongst others, the MCCC, MCCS, MCA, China Student Federation Malaysia, M101, iProperty, and SKT Entertainment Group.
Tee pointed out that 2014 is not only Visit Malaysia Year, but also the 40th anniversary of diplomatic ties between Malaysia and China, and this year should have been a historical high note of trade between the China and Malaysia. It is truly unfortunate that the MH370 incident has resulted in a missed opportunity between the two nations which is a major loss for the people across both shores, much to the joys of those countries that do not wish to see the closer ties between the China and Malaysia.
Founding of Malaysia-China Friendship Action Group to strengthen bilateral relationship
During the seminar, Tee highlighted that China is Malaysia’s largest trading partner while Malaysia is China’s biggest trading partner in ASEAN with bilateral trade exceeding 100 billion U.S. dollars in 2013. Bilateral trade volume is expected to exceed 160 billion U.S. dollars by 2020.
Moreover, according to data from Savills Research, institution and retail investors from China invested some 1.9 billion U.S. dollars (about RM 6.22 billion) in Malaysia last year; far more than in Hong Kong, Singapore, and Australia. Many developers from China have also invested in Malaysia, including many of the biggest developers in China such as developers currently with projects in Malaysia include Country Garden, Agile Property，R&F Properties，Vanke Property，Greenland Group，New Hualian Property, Carson Property Development, Beijing Urban Construction Properties Co., Ltd, Beijing Construction Engineering Group, Zhuoda Property, and more. Most of these developers are undertaking large scale development in Malaysia and have committed to projects worth some RM 30 billion, making Malaysia the largest overseas development market for China developers.
In any case, Tee believes that the friendship and trust built over 40 years and the strong investment fundamentals of Malaysia will help overcome any negative impacts caused by the sentiments, and any impacts will be short term in nature.
Diversified Market Ensure a Continuous Growth in Property Sector
Tee is convinced that the diversified market of Malaysia can reduce the impact to a minimum, and this is evident from the fact that investors from Singapore, Indonesia, Hong Kong, Taiwan, Germany, Japan, South Korean and many other countries have become more active in investing in Malaysia recently. Tee cited the example of Singaporeans’ recent frenzy purchase of commercial properties in Iskandar Johor and the influx of Taiwanese snapping up residential properties. Investors have proven their confidence in Malaysia’s economy development through concrete actions by continuing to invest into the country. Tee recalled how he has advised many developers some years ago, on the back of the 2009 Middle East Crisis, to increase their reach and not to solely focus on investors from a single country or group. He has also taken steps to diversify his own property portfolio to reduce the risks should there be issues with any single group.
He added that the short term adjustment period is going to prove to be an even better investment opportunity and investors will not only have more choices, but also the chance to pick up properties at a very attractive package. This is why he believes that 2014 will continue to be an outstanding year for investment.
During today’s seminar, Tee also held the initiation ceremony for the series of activities lined up for the Malaysia-China Friendship Action Group including
holding talks in various locations across China and the distribution of China movies in Malaysia and to set up the International Film Development Committee to foster
greater understanding between the peoples through movies. He hopes that these practical actions can help show concern for the incident, highlight the seriousness that Malaysia is viewing this incident, and to promote bilateral relationship. Tee will also reinitiate the SwhengTee World Tour in May this year to promote Malaysia internationally.
In addition, Tee also chaired the 2014 Malaysia-China Development in Politics, Economy, Culture, and Education discussion that saw MCCC Vice President Dato’ Joseph Lim, MCA Youth President YB Chong Sin Woon, Dato’ Seth Yap from M101, and local celebrity Chris Tong discuss the various effects arising from the MH370 incident. All parties shared their interesting takes on the issue, and express confidence about the future of Malaysia. They agree that things will improve from here and that the relationship between Malaysia and China will set new heights.
All said, Tee feels that citizens of both sides must view the damage caused in a move positive light but should not pretend that issues do not exist by not discussing them. Some of the negative misconceptions of a number of China celebrities on Malaysia should be addressed, and outstanding Malaysians all around the world should not be discriminated against. Malaysians who have stood up for various global issues should be respected, and these are the reasons that inspired Tee to launch a series of activities. After all, establishing positive long term bilateral relationship is a long term project and requires continual efforts.
Storey credit: iproperty.com
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