Construction & Real Estate
From The Report: Malaysia 2016
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Over the years, large-scale public and private projects have dominated the activities of the Malaysian construction sector, driven by governmental and investor efforts to implement successive five-year plans aimed at becoming a developed nation. The 11th Malaysia Plan (11MP), covering 2016-20, focuses on transforming the construction sector, among other economic areas. Detailed under four main strategies, its goals for the sector include the continuation of a separate Construction Industry Transformation Programme, covering the same five-year period, which is meant to help the sector meet market demand and propel the industry into the international arena. Although 2016 is forecast to be a flat year for the real estate sector, there are excellent deals to be had for forward-looking investors and those able to invest without a bank loan. This chapter contains an interview with Mohamad Salim, Group Managing Director, Malaysia Resources Corporation.

Articles from this Chapter

Overview

Transforming the build: Infrastructure and residential developments bolster growth
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Over the years, large-scale public and private projects have dominated the activities of the Malaysian construction sector, driven by governmental and investor efforts to implement successive five-year plans aimed at becoming a developed nation. Transformation The five-year 11th Malaysia Plan (11MP), covering 2016-20, focuses on transforming the construction sector, among other economic areas. Detailed under four main strategies, its goals for the sector include the continuation of a separate Construction…

Analysis

Slowing down: A weaker ringgit has impacted cement firms’ balance sheets
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In 2015 the Malaysia Investment Development Authority approved investments totalling RM3.7bn ($915.9m) in 25 projects in the non-metallic mineral products industry. Of the investments and projects in this subsector, 10 projects involved cement and concrete, with an investment value of RM253.9m ($62.8m), or 7% of the total for the non-metallic mineral products industry. The cement and concrete industry makes up around 4% of GDP as well as supporting the country’s trade balance with exports to Australia,…

Analysis

Greener standards: A new push for sustainable practices and environmentally friendly facilities
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As the government aims to drive the internationalisation of the domestic construction sector, it is also evaluating how the quality of construction in Malaysia stacks up. With more and more countries fixated on green growth and development, it is increasingly clear that the construction industry needs to up its game in order to compete globally. According to the UN Environment Programme, buildings emit a third of global greenhouse gas (GHG) emissions. Altering construction activity towards green…

Overview

Bright spots: Although sector investments are down, investors can take advantage of lower prices
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A combination of a sluggish economy, a slump in commodity prices, an increase in the cost of living and a shaky domestic political landscape has had a neutralising effect on Malaysia’s real estate sector. Although 2016 is forecast to be a flat year, there are excellent deals to be had for forward-looking investors and those able to invest without a bank loan. Shrinking Values On February 29, 2016, the Malaysian Investment Development Authority (MIDA) disclosed that approved investments in the…

Interview

Transit-oriented designs: OBG talks to Mohamad Salim, Group Managing Director, Malaysian Resources Corporation Berhad (MRCB)
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Interview: Mohamad Salim How crucial is public transport to ensuring the sustainable expansion of Kuala Lumpur? MOHAMAD SALIM: The Malaysian government now emphasises mass rapid transit (MRT), light rail transit and monorail in order to stimulate the opening-up and growth of new areas of development. For example, from the area of Sungei Buloh, a subdistrict of Petaling, the public can now access downtown Kuala Lumpur’s Central Business Direct (CBD) in 15 minutes, and the area is no doubt…

Analysis

Luxury on sale: The apartment segment has seen a slowdown in transactions
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The residential property sector has been affected by Bank Negara Malaysia’s cooling measures and poor consumer sentiment, creating a slowdown in transactions across the board. But the outlook for 2016 and 2017 is especially difficult for the condominiums and apartments segment, which has become an increasingly popular slice of the property market. In the second half of 2015, sales of apartments and condominiums rose by 120% on the same period a year earlier, from 779 to 1844, according to the…