MAREC 2024: Going forward, it’s all about ESG

• KSI Strategic Institute For Asia Pacific economic adviser Dr Anthony Dass stated that 70% of Malaysia’s trading partners will be going to net zero by 2050. “So if the property sector is not going to go into the net zero situation, they are not in the game anymore”. 

PETALING JAYA (March 7): Sustainability is the way forward for the property sector as highlighted by KSI Strategic Institute For Asia Pacific economic adviser Dr Anthony Dass at the second day of Malaysian Annual Real Estate Convention (MAREC) 2024 today.

Presenting a paper titled ‘Innovative Foundations: Navigating the Future of Real Estate Economics for Sustainable Growth, he stated that 70% of Malaysia’s trading partners will be going to net zero by 2050. “So if the property sector is not going to go into the net zero situation, they are not in the game anymore”. 

“If you look at Malaysians today, they are no longer looking at cheap options. Instead, they prioritise quality and lifestyle considerations, and slowly embracing eco-friendly and green living choices. That’s the trend going forward, five to 10 years down the road. It’s something we have to take very seriously because that is how every single business will be positioned going forward,” he added.

This year, with improving investments in both manufacturing and services, Dass anticipates an upward trend in the property sector, signaling a more positive outlook. He expects that the implementation of FDI will increase to approximately 67%, which is promising news for the property sector.

“With inflation coming off, I don't foresee the central bank raising interest rates nor cutting it. We expect interest rates to remain at 3% this year. This would mean your mortgage rates would also hold on well, which is a plus point to consumer spending itself,” he noted. 

Dass also suggested looking into cross-border opportunities as the way forward. He emphasised that focusing on a Malaysian-centric approach would be very difficult. Hence, going international is imperative. 

ESG mentality should start from top down

When asked how real estate agencies could work on the S (social) and G (governance) parts of ESG, panelist ESG Association of Malaysia (ESGAM) president Adjunct Practice Prof Cheah Kok Hoong said that there’s no magic formula.

“First and foremost, in order for you to make a likeable and sellable product, you must know where you are at this moment. So in the ESG context, whether it’s public listed companies or property agencies, you will always need to do some self reflection and assessment,” he said at the ‘How Innovation Can Play A Significant Role In Promoting Sustainability Within The Framework Of Environmental, Social & Governance (ESG) Principles’ forum.

Cheah also liked the example given by moderator and immediate past MIEA president Chan Ai Cheng, which is to incorporate ESG into the company’s mission statement, as this will lead to ESG mentality and culture. He asserts that the mandate has to start from the top for the rest to follow. 

Additionally, Cheah believes that there is growing awareness of ESG among property investors, especially those interested in future-proof options. They prioritise properties with long-term relevance, resulting in increased focus on ESG factors moving forward.

A panel of 17 speakers shared a host of topics on real estate innovation applications, sustainability practices, true-to-life success stories and real-time leadership tips at this year’s MAREC, and EdgeProp.my is the media partner.

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