KUALA LUMPUR: The government’s liberalisation measures carried out last year on the property sector and abolishing the 30% bumiputra equity requirement in certain sectors of the economy will have a far reaching impact on the local property sector, according to a special report by CB Richard Ellis Research, Asia on Malaysia’s Market Prospects.

The new measures are expected to have a positive medium-term impact and spur interest on the part of foreign and local institutional property funds and Real Estate Investment Trust Funds in entering the Malaysian real estate market the report said.

The report also added that the removal of the 30% bumiputra equity condition in certain sectors of the economy is significant and rolling this policy back puts Malaysia on an even footing with Hong Kong and Singapore and sets Malaysia apart from some of the still emerging economies elsewhere in Southeast Asia.

CB Richard Ellis (CBRE) (Malaysia) Sdn Bhd's executive director, Paul Khong said: “We have seen growing interest from overseas institutions in Malaysia’s commercial real estate. These are canny investors with wide experience in the region and when the right opportunity appears, they are keen to buy.” CBRE (Malaysia) today (Jan 27) renamed itself from Regroup Associates Sdn Bhd.

“With further relaxation of the requirements for local equity, Malaysia will continue to attract foreign capital from a variety of sources, including sovereign funds and some of the major names in the industry,” he added.

The government through the Foreign Investment Committee last year removed the 30% bumiputra requirement for some key industries of the economy, abolished most restrictions on the purchase of properties by foreign investors and relaxed shareholding restrictions on stakes that a foreign investor can hold in some parts of the local finance industry.

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