Direct Foreign Ownership with No Capital Controls
Non-residents are free to buy residential and commercial properties in Malaysia but all purchases are subjected to a minimum of RM500,000.
Transparent Torrens Land Administration System – same as Australia
Real Estate Investor-Friendly Tax Environment
– In Budget 2012 Malaysia a new structure of RPGT, Real Property Gain Tax, was introduced as follows:
1st year 10%
2nd year 10%
3rd year 5%
4th year 5%
5th year 5%
6th year 5%
Repatriation of Income is allowed
– Bank Negara Malaysia does not impose any restriction on the repatriation of profits, rental or proceeds fromdivestment of investments in Malayisa by a non-resident.
Foreign Investment Protection in Malaysia
– Investment Guarantee Agreements (IGA). Malaysia has entered into an IGA with South East Asian Nations (ASEAN) countries, the Organisation of Islamic Countries (OIC) and more than 50 other countries to increase the confidence of foreign investments in Malaysia.
Investment Guarantee Agreement will:
– Protect against nationalisation and expropriation
– Ensure prompt and adequate compensation in the event of nationalisation or expropriation
– Provide free transfer of profits, capital amd other fees
– Ensure settlement of investment disputes under the Convention on the Settlement of Investment Disputes.
Development of Iskandar Malaysia is on track has exceeded Phase 1 target set.
Johor is an upcoming real estate growth, playing catch up vis-a-vis hot spots in Klang Valley, KL & Penang.
Demand for housing of corporate staff & growing student population.
Economic outlook for Johor is compelling due to national and state government’s intense commitments. ITs property market cycle is largely seemed to be in its inception stage now.
Investments from Singapore firms/developers are growing and expected to reach record high in 2012 and beyond.