ASEAN Must Lead Real Estate Sector Reform Amid Global Challenges
KUALA LUMPUR, July 23 (Bernama) -- ASEAN must take the lead in transforming its real estate sector amid rising geoeconomic volatility, irreversible structural shifts and rapid urbanisation, said Housing and Local Government Minister Nga Kor Ming.
Delivering his keynote address at the ASEAN Real Estate Conference (AREC) 2025 here today, Nga warned that the region is facing a 'perfect storm' of challenges, including supply chain disruptions, currency fluctuations and surging demand for urban housing.
'We stand at a pivotal moment where real estate is no longer just about buildings, but about building futures — where every citizen, from Kuala Lumpur to rural Cambodia, finds not just shelter, but dignity and opportunity,' he said.
Citing data from the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP), he said ASEAN's urban population is projected to increase by 90 million by 2030, necessitating the construction of 10 to 12 million new housing units annually.
At the same time, he said global uncertainties have dampened property sales, with luxury condominium prices in Ho Chi Minh City falling by eight per cent due to oversupply, while industrial real estate surged by 22 per cent, driven by shifts in regional manufacturing.
Nga said the construction sector is also grappling with material price volatility, citing steel prices which saw fluctuations of up to 30 per cent, while the Malaysian ringgit fell to RM4.80 against the US dollar in April 2024, before recovering to RM4.20.
'These uncertainties complicate supply chain planning by altering the price of both imports and exports,' he noted.
Beyond short-term shocks, Nga outlined what he described as 'three irreversible shifts' impacting the region's real estate sector — the sustainability imperative, urbanisation paradox and geopolitical repricing of global capital.
'Green features were once premium options, they are now minimum requirements from both regulators and consumers,' he said, adding that sustainable building materials now add up to 15 per cent to overall construction costs.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
Malaysia secured reduced US tariff through strong leadership, says Anwar
KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim says that Malaysia's success in reducing the US tariff rate is due to effective leadership. He said the previous 25% tariff was a serious concern due to its potential economic impact. "The 25% tariff that worried us has been reduced to just 19%. If it had remained high, the impact on our economy would have been substantial. "We are a hub for semiconductors and electrical and electronics (E&E) in Southeast Asia. "Our exports to the United States alone make up 60% of total E&E exports – how much is that? Over RM200bil a year in exports to the US from E&E and semiconductors alone," he said on Saturday (Aug 2) at the National Felda Settlers' Day Celebration and Rural Entrepreneurs' Carnival He added that Malaysian semiconductor exports will continue to enjoy zero tariffs. "Semiconductors – once again – are not included in this tariff. Zero. We can export." Anwar said the achievement was due to leadership capable of navigating domestic and international complexities. "This is why leadership must have the ability to manage not just within the country but also internationally. "Some people ask what does it have to do with the US? It has to do with saving tens of thousands of our workers. It has to do with securing high tax revenues so they can be returned to the people," he said. He explained that the government had been engaged in months of negotiations because the 25% rate was simply too high. "We negotiated for months because the 25% tariff imposed on us was too high. There were conditions that were imposed." Anwar said that Malaysia's position is as a trading nation with broad global ties. "We trade with the US, with China, with India, with Australia, with the Arab world." He also highlighted Malaysia's leadership in organising key international forums, including a recent historic summit involving Asean, wealthy Arab Gulf nations, and China. "Two months ago, for the first time, we brought together Asean, the Gulf countries – rich Arab nations like Kuwait, Saudi Arabia, UAE, Qatar, Bahrain – together with China. "This is a record. It was not done by me alone; Malaysia did it through the strength of the Malaysian people," Anwar said. He said Asean leaders acknowledged Malaysia's effectiveness, including the region's most senior figure. "A senior leader in Asean – the Sultan of Brunei – told me that although dozens of Asean summits have been held, he is proud because the Asean-Gulf-China summit in Kuala Lumpur was the largest and the most efficiently organised by our friends." Anwar concluded by stating that while Malaysia does not always agree with the policies of its partners, it remains firm and principled. "We do not agree with all policies, but we are a trading nation. We are friends with everyone, but we still dare to state our stance with courage."
Borneo Post
an hour ago
- Borneo Post
Sarawak's silent roar: Charting a sustainable maritime future
The gentle lapping of waves against the shores of Sarawak has long been a familiar sound, a backdrop to a land rich in natural resources and vibrant culture. But lately, that quiet hum has taken on a new resonance, a deeper, more purposeful vibration that echoes far beyond the South China Sea. It's the sound of innovation, of ambition, and of a nation declaring its intent to lead the global maritime and energy transition. This declaration found its most striking embodiment at the International Energy Week (IEW) 2025 in Kuching last week, with the grand unveiling of the SKG 520. This isn't just another vessel; it's a testament to bold Malaysian ingenuity, a marvel of engineering that redefines what a ship can be. Conceived and meticulously crafted by the Nam Cheong Group, Malaysia's foremost offshore support vessel (OSV) builder, the SKG 520 stands as both a flagship and a beacon. Its sleek lines and advanced capabilities have captured the imagination of industry leaders worldwide, signaling Sarawak's ascent not merely as a regional energy hub but as a vital, proactive contributor to a sustainable maritime future. What truly sets the SKG 520 apart, distinguishing it from its predecessors and contemporaries, is its foundational principle: unparalleled versatility. For decades, the maritime industry has operated on a model of specialization. Vessels were purpose-built, designed for a singular task – be it drilling support, anchor handling, or crew transfer. While effective in their niche, these traditional ships often become costly and inflexible assets in an industry that demands constant adaptation. The rapid shifts in energy demands, the burgeoning growth of renewable offshore projects, and the ever-present need for efficiency have rendered such single-mindedness a liability. The SKG 520 breaks this conventional mold. It is engineered as a true Multi-Purpose Support Vessel (MPSV), a chameleon of the seas capable of dynamic reconfiguration into five distinct operational modes. Imagine a single platform seamlessly transitioning from supporting the intricate demands of established oil and gas operations to meeting the burgeoning logistical needs of offshore wind farms or even facilitating the deployment of cutting-edge green energy technologies. This adaptability is not merely a technical marvel; it represents a strategic revolution for maritime operators. This inherent flexibility translates directly into tangible benefits. Companies investing in the SKG 520 can drastically reduce the need for a sprawling fleet of specialized vessels. A single unit can perform the roles that once required multiple ships, leading to significant reductions in operational costs. Think of the savings in fuel, maintenance, crew, and port fees. Beyond the financial gains, there's a crucial advantage in time efficiency. The ability to switch tasks without lengthy dry-dock periods or the need to mobilize different vessels means projects can proceed with unprecedented speed and agility. Crucially, this versatility also delivers a profound environmental impact. Fewer vessels in operation directly translates to lower overall emissions and a significantly smaller carbon footprint. As the global maritime sector faces increasing pressure to accelerate its journey towards ambitious climate targets, the SKG 520 offers a compelling solution, proving that economic efficiency and ecological responsibility can, and indeed must, go hand-in-hand. It's a powerful statement that innovation can be a catalyst for environmental stewardship. The significance of the SKG 520 extends far beyond its impressive engineering specifications and operational efficiencies. It embodies Malaysia's determined fusion of tradition and transformation. Sarawak, a state historically defined by its rich natural resources – its timber, its oil, its gas – is now powerfully demonstrating its capacity to innovate and lead in the global energy arena. This vessel is a tangible symbol of a strategic pivot, moving beyond a legacy defined solely by fossil fuels to position itself at the very heart of the broader energy transition. It's where deep-seated maritime expertise, improved over decades, converges with ambitious renewable energy goals, creating a potent synergy. The presence of Sarawak's Premier, Datuk Patinggi Tan Sri Abang Johari Tun Openg, and Deputy Minister of Energy and Environmental Sustainability, Datuk Dr Hazland Abang Hipni, during their tour of the vessel, wasn't just a courtesy; it was a clear endorsement of Nam Cheong's pioneering spirit and Sarawak's resolute commitment to becoming a powerhouse in offshore renewables and the nascent hydrogen economy. This vessel also radiates a profound sense of confidence – a confidence that resonates on multiple levels: · Confidence in Malaysian Shipbuilders: It asserts that Malaysian shipbuilders, exemplified by the Nam Cheong Group, possess not only the capability to meet but to surpass the most stringent international standards. This isn't about merely assembling components; it's about designing, engineering, and constructing a vessel that stands shoulder-to-shoulder with the best in the world, showcasing a mastery of complex maritime technology. · Confidence in Sarawak as a Global Hub: It affirms that Sarawak possesses the infrastructure, the talent, and the strategic vision to serve as a world-class maritime and energy hub. This isn't just about geographical advantage; it's about fostering an ecosystem where innovation thrives, where skilled labor is nurtured, and where international collaboration is welcomed. · Confidence in Sustainability as Opportunity: Perhaps most importantly, it conveys a deep-seated confidence that embracing sustainability is not a constraint on progress, but rather a powerful opportunity. It's an opportunity to design smarter, build cleaner, and operate more efficiently, creating new industries and new pathways to prosperity while safeguarding the planet. The SKG 520 is a living example that green initiatives can drive economic growth and technological advancement. Consequently, the launch of the SKG 520 must be recognized for its true weight: it is a national statement. It signals unequivocally that Malaysia, and Sarawak in particular, is not content to merely observe the global shift towards cleaner energy and sustainable maritime practices. Instead, it is ready and equipped to play a pivotal, proactive role in steering these critical industries towards a cleaner, more sustainable horizon. As the SKG 520 prepares to set sail, it carries more than just advanced machinery and sophisticated systems within its hull. It carries the promise of a nation boldly innovating, adapting, and stepping forward to lead. The quiet hum from Sarawak's shores is no longer just the sound of waves; it heralds the rising tide of a state and a country decisively charting its course toward a future that is both prosperous and profoundly sustainable. It's a future where Malaysian ingenuity helps light the way for the world.
Malay Mail
an hour ago
- Malay Mail
Johor eyes Singapore's hawker model to boost local market standards
JOHOR BAHRU, Aug 2 — Johor is looking to adopt elements of Singapore's thriving hawker centre and public market management model to enhance quality, cleanliness and overall business environment at similar facilities across the state. State Housing and Local Government Committee chairman Datuk Mohd Jafni Md Shukor said the initiative was inspired by a recent working visit with Menteri Besar Datuk Onn Hafiz Ghazi to Geylang Serai Hawker Centre, one of Singapore's best-known food and market hubs. 'The centre not only draws tourists but also serves as a thriving community economic zone, blending modern design, high hygiene standards and strict health regulations while preserving cultural heritage,' he said in a statement today. Mohd Jafni said Johor intends to apply the model's key features, such structured stall planning, regulated licensing, scheduled inspections and inclusive community spaces, in areas such as Johor Bahru, Iskandar Puteri, Pasir Gudang, Kulai, Pengerang and Pontian. He also highlighted Singapore's Community Development Council (CDC) Vouchers, digital subsidies of up to SGD500 per household, usable at registered local vendors and markets, excluding supermarkets and major franchises, to support small traders directly and ease the cost of living. All these best practices will be considered under the Maju Johor agenda to reform local governance and strengthen hawker and market management, he said. — Bernama
