Asean Summit deals could add RM300bil in FDI, boost real estate

New Straits Times

6 days ago

KUALA LUMPUR: The agreements forged at the upcoming Asean Summit could generate hundreds of billions of ringgit for Malaysia's economy and real estate sector by 2030, according to Juwai IQI co-founder and group chief executive officer Kashif Ansari.
He said the summit brings together regional leaders to find ways to further integrate economies and promote trade and promote trade until 2030.
"What's at stake is potential agreements that could help make Malaysia wealthier by 2030. It is especially important for the Asean nations to work together now, at this global turning point," he said in a statement.
Ansari pointed out three key areas where Malaysia could reap substantial benefits, including regional integration, Asean unity in global trade and foreign direct investment.
"The Johor-Singapore Special Economic Zone (JS-SEZ), is a prime example of integration with the government projections estimating it will contribute RM110.9 billio annually to Malaysia's economy by 2030," he said.
He added that tighter integration across Asean could boost Malaysia's total trade volume significantly, to about RM3.87 trillion by 2027.
Meanwhile, exports alone are projected to reach a record RM2.13 trillion annually by 2030, driving job creation and higher wages across Malaysia.
"While the agreements coming out of the summit could have us shipping more goods out by 2030, we will also be receiving more inbound foreign direct investment (FDI).
"The investment should exceed RM300 billion over the next five years, with that money going into local innovation, infrastructure, employment and property," he said.
Ansari noted that the FDI inflows during this period will generate at least RM15 billion or five per cent in new real estate activity, including industrial parks, commercial centres, logistics hubs and housing developments.
"We have estimated this five per cent ratio between FDI and real estate based on typical patterns we've seen in across the region. The real number could be lower, or much higher.
"Already in the past few years, global brands are building data centres, electric vehicle facilities and logistics hubs, creating high-quality property demand in the industrial sector and also have spillover in housing, office and retail," he added.