A cosmopolitan metropolis offering glossy cityscapes juxtaposed with century old traditions and lifestyles, Malaysia is not a destination for the fainthearted. It is however a paradise of property investment opportunities for those looking to add a Far Eastern flavour to their portfolio.

Recent sweeping changes to taxation and legislation have made Malaysia an attractive prospect for both local and foreign investment. The economy is strong with outside investment flooding in and many western corporations setting up Asian outposts there.

In terms of types of property, Malaysia offers a wealth of options for both the casual and serious investor. From urban real estate overlooking the business hub of Kuala Lumpur to tropical holiday properties set on silky sands fringed by blue sea and palm trees, Malaysian real estate is considered to be a good long term investment option by many investment analysts.

For those looking for a serious investment, property in Kuala Lumpur is a safe bet for long term rental incomes. Demand is currently strong for both residential and commercial property. Existing or new builds are plentiful and are backed up by an excess of demand. In comparison with other young, vibrant cities Kuala Lumpur is a cost effective solution for property investors with prices significantly lower than those of comparable builds in other capitals.

As a typical example, a one bedroom new build in the city centre Kiara 1 development is currently on the market for $ 110,005. The epitome of modern living, the apartments are a triumph of comfort and modernity, with everything from lighting, glass walls and architecture specifically designed to give a sense of space and comfort. Luxury living, five star views and an abundance of recreational facilities, the avant-garde Kiara 1 development boasts excellent rental potential.

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Malaysia business and market overview including economy, industry, demography, infrastructure, retail trade and food culture. Provides an overview for those interested in conducting business in the country.

ECONOMY. Malaysia is a middle-income economy and has the third highest GDP per capita (US$4,625) among the Southeast Asian countries after Singapore and Brunei. The country was primarily a producer of raw materials but transformed its economy from the 1970s to the 1990s into a multi-sector economy. Malaysia’s economic growth is export driven mainly from exports of electrical and electronic products. Malaysia’s economy is relatively stable with healthy foreign exchange reserves and a GDP of US$118.3 billion in 2004. From 2000 to 2004, Malaysia’s real GDP grew by an annual average of 5.7% while inflation remained below 2.0% and unemployment below 4.0%. The Asian economic crisis of 1997 adversely affected Malaysia’s economy during the period. It is unlikely that the country will experience an economic crisis similar to 1997 with current healthy foreign exchange reserves, low inflation and small foreign debt. The manufacturing sector accounted for 48.5% of Malaysia’s GDP in 2004, services accounted for 42.4% and the agriculture sector accounted for 9.1%. Major industries include electronic & electrical products, textiles, clothing & footwear, chemicals, petroleum, wood and metal products. Major agriculture industries include palm oil, rubber, cocoa, rice, poultry and timber.

DEMOGRAPHY. Malaysia comprises of Peninsular Malaysia and East Malaysia (located on the northern half of the island of Borneo) with a population of 26 million. Malaysia is a multi-ethnic society comprising of the predominant indigenous Malays (50%) followed by the Chinese (24%) and Indians (7%). Other indigenous groups (11%) include the Ibans, Kadazans, Melanaus and Kelabits. Major religion practiced is Islam followed by Buddhism, Taoism, Hinduism and Christianity. Major languages used are Malay (national language), English (commonly used in business), Chinese (mainly Mandarin, Hokkien and Cantonese) and Tamil. Malaysia’s population is becoming increasingly urban. The country’s urban population increased from 54.7% to 62.8% of Malaysia’s total population from 1995 to 2004. Main reason is increasing employment opportunities in the major urban areas. Major urban areas include the nation’s capital Kuala Lumpur and the surrounding areas (known as the Klang Valley), Penang, Johor Bahru, Ipoh, Kuantan, Kuching and Kota Kinabalu. Households in the urban areas have an average income that is twice than those in the rural areas. An estimated 5% of Malaysian households live below the poverty level while 50% are low-income households. The proportion of medium income households is 33% while high-income households are 10%.

INFRASTRUCTURE. Malaysia has a well-served international and domestic telecommunication system. Cities and towns are well connected by roads including highways and public transport. Internet broadband services are available in the cities and major towns. Malaysia has an international airport situated near Kuala Lumpur and airports across the country serving mainly domestic travel.

INTERNATIONAL TRADE. Malaysia’s major trading partners include the United States, Japan, China, Singapore, Thailand, Taiwan and South Korea. Major exports from the country include electrical and electronic products, machineries, petroleum and liquefied natural gas (LNG), textiles, clothing & footwear, palm oil, furniture and sawn timber. High technology exports (mainly electrical and electronic products) account for more than 50% of Malaysia’s exports. Major imports include electrical and electronics, machineries and equipments, petroleum products, plastics, iron and steel products, chemicals and foods.

CONSUMER USAGE OF TECHNOLOGY. Nearly 75% of all homes have fixed line telephones and there are 15 million mobile phone subscribers for a population of nearly 26 million in 2004. Penetration of personal computers in homes was nearly 30% during the period with 3.5 million internet subscribers and 10 million internet users. More than 90% of all Malaysian homes have refrigerators and televisions. Nearly all middle and high-income homes have cars and most have more than one. The estimated penetration of cars in homes is between 75% and 80%. Thus, many low-income homes have cars but tend to be lower-end models or cheaper second hand cars. Furthermore, nearly all lower income homes have motorcycles for their travelling needs.

RETAIL MARKET. Retail sales in Malaysia reached an estimated US$14 billion in 2004 and forecast to grow further to US$20 billion by 2010. The Klang Valley (Kuala Lumpur and the surrounding areas) contributes nearly 30% of the country’s total retail trade. The traditional “mom and pop” establishments dominate Malaysia’s retail industry while shopping at the modern retail establishments such as hypermarkets, supermarkets, departments, mini-markets and convenience stores is gaining popularity. These modern establishments account for nearly 25% of the total retail sales. Shopping at the traditional open-air markets remains popular among Malaysia’s low, medium and even high-income consumers because of their festivity atmosphere.

FOOD CULTURE. Malaysia has three major ethnic food cultures i.e. Malay, Chinese and Indian foods. Rice is the staple food followed by various types of noodles and Indian bread. Malay dishes tend to be hot and spicy, Indian foods are usually curry dishes while Chinese foods are salty. However, the various ethnic communities have adapted foods from other communities. Western baked bread and bakeries and fast foods are popular and affordable even among many in the lower income group.

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Malaysia’s capital city, Kuala Lumpur, and Singapore are very similar places, in terms of the booming economy and skyscrapers dominating the city area, but there are a few places still worth a visit here.

Petronas Twin Towers First and foremost is the Petronas Twin Towers, which was once the tallest building in the world, until Taiwan came up with their own 1O1, and now Dubai also in the picture with their still-under-construction tower building. Here, long queues are always forming from 8.30am onwards for the free passes up the tower viewing gallery. But be warned that they would only issue around 800 free passes per day for the guided tour, so make sure to reach there early. The guided tour will take visitors all the way up to the sky bridge on the 41st floor.

I was there early queuing in the morning but the timing for my guided tour was scheduled in the afternoon due to the high demand for the free passes. So a good way would be to shop at the mega Suria KLCC shopping mall just next to it while waiting for your scheduled timing up the tower. You can pay a visit to the Petrosains over there, a discovery centre about petroleum manufacturing. At Petrosains, visitors will start with a ride in the dark which covers details on oil manufacture and the science of it.

At a dizzying height of 458 meters, Petronas Twin Towers, a pair of 88-storey buildings, is the best place to take in the view of Kuala Lumpur. There is also the Philharmonic Theater, which surrounds one with wonderful music from the Malaysian Philharmonic Orchestra.

Menara Kuala Lumpur Another icon representative of KL is the Kuala Lumpur Tower (Menara Kuala Lumpur). Located on a hill called Bukit Nanas, this tower has an observatory platform which is easily accessible by high speed lifts. Taking the lifts up clocks less than a minute, and the view from the observatory tower is spectacular. You can get a bird’s eye view of the Twin Tower and other magnificent buildings nearby. There’s also a very cosy, revolving restaurant at the top of the tower, offering excellent buffet and great service for a reasonable price. Live music, excellent food, splendid views of the city, this is the place to be in. You might even be able to see Genting Highlands on a fine day!

Sunway Lagoon Sunway Lagoon is probably one the best integrated resorts in Malaysia. Within the holiday resort itself is a shopping complex with over 300 shops, an amazingly large lagoon, an Extreme park, Zoo, archery range, bowling alley and a water theme park. Alongside the shopping mall and the resort is a first-class hotel. Several restaurants offer excellent cuisine as well. It’s self sufficient, and indeed a well-worth trip to make.

Sultan Salahuddin Abdul Aziz Shah Mosque In Shah Alam (about 45 minutes from KL) lies one of the largest mosques in South-east Asia, the Sultan Salahuddin Abdul Aziz Shah Mosque (In Malay: Masjid Sultan Salahuddin Abdul Aziz). This impressive building is often nicknamed the “Blue Mosque”, for its blue aluminum dome covered with verses from the Quran. It is huge and magnificent, and surrounded by the great lake of Shah Alam in the center of Shah Alam town. It incorporates modern architectural style with Malay architecture in its design.

Batu Caves About 13 km north of KL is the Batu Caves, a place of worship for the Hindus. Large and imposing, it consists of three main caves and a number of smaller ones. The caves are made of limestone and discovered in 1892. You’ve got to climb up a long fairly steep flight of stairs to enter the caves. A comfortable pair of shoes will work wonders. The surreal carvings and paintings on the walls of the caves will impart a sense of spiritual feel to all who enters.

Merdeka Square, Central Market and Chinatown Back to KL city centre, the Merdeka Square houses the tallest flagpole and has an ancient fountain. It is always crowded with tourists and a visit at night would be much cooler. The Merdeka Square is between the majestic Court House and the Selangor Club. The Central Market and Chinatown are also a mere 10 minutes walk away. Chinatown, also known as Petaling Street is one of Kuala Lumpur’s most popular tourist destinations. In the evenings, a beehive of stalls comes alive on the streets.

You can easily find a large variety of food ranging from roadside stalls to restaurants in Chinatown, offering plentiful choices from dumpling noodles, claypot chicken rice, bbq chicken wing, seafood to steamboat and more. Though it might get a little difficult to move around due to the crowds, the historical shop houses add to the ambience. This is also the place to get cheap t-shirts, souvenirs and almost any other things, but prices haven risen considerably in recent years due to the tourism effect. Bargaining is highly recommended.

Hotels are considered cheap in this modern city, and good hotel deals can be found almost any time of the year. A holiday trip to this city can be a wonderful experience, not mentioning easy on the pockets.

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