Rebecca Foster | Jan 18, 2013 | Comments 1
After a slow start to the year, investment activity in Kuala Lumpur is expected to increase in Q3.
Growing investor interest, the completion of mega-projects and government programmes are set to boost Kuala Lumpur's position as a global investment destination, according to property expert Gavin Tee. Tee predicts that a property super cycle will experience upward growth after Malaysia's general election in April, reports the New Straits Times.
Tee stated, "After the election when confidence returns especially in the third quarter, expect a surge in interest from foreigners especially from China, Singapore, Germany, Japan, the Middle East and Australia… The region itself is emerging as the most compelling growth story in 2013."
According to Tee, a combination of relatively low costs and a world class infrastructure provide enormous upsides for investors.
The integration of the Asean Economic Community (AEC) in 2015 will drive investors towards Kuala Lumpur, according to The New Straits Times. The opening up of Myanmar has also attracted investors to Southeast Asia and generated benefits for Kuala Lumpur.
Singapore's status as a wealth magnet is predicted to attract investors to neighbouring Malaysia, particularly the Iskandar region. Property prices in Iskandar have already reached the same level as prices in Kuala Lumpur, and investors are expected to flock to the region upon the completion of projects like LEGOLAND and Pinewood Studios. The Iskandar Regional Development Authority reported that total foreign investment in the area grew from RM22 billion (US$7.3 billion) in 2008 to RM37 billion (US$12.28 billion) in 2012.
Tee predicts that Kuala Lumpur will begin to show increased levels of investment activity in Q3 2013, after a slow start to the year while investors focus on Iskandar. Singaporeans particularly are expected to hone in on investment opportunities in Kuala Lumpur as ties between the two countries become stronger as a result of plans to introduce a high-speed rail link between Singapore and Kuala Lumpur.
The Times predicts that Kuala Lumpur will continue on its upward trajectory for the next 12 years, after achieving various recent affirmations including being ranked Southeast Asia's second most liveable city by The Economist Intelligence Unit Global Liveability Survey 2012.
"The government has allocated a lot of development funds to Greater KL such as the MRT (My Rapid Transit), River of Life, TRX (Tun Razak Exchange) and four proposed expressways which will have a huge economic impact and transform this city into a world class city," said Tee.
The TRX is set to be an international financial hub and is expected to attract over 250 global companies to set up shop. Construction of the 26 building project began in July 2012, with phase one of the process scheduled for completion in 2016. Other ongoing developments include Menara Warisan Merdeka and the Kuala Lumpur Metropolis, both scheduled for completion in 2015.
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Filed Under: Country News • Malaysia • News
Article source: http://www.thethailandlinks.com/2013/01/20/boom-times-ahead-for-kuala-lumpur/
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