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The Star
4 days ago
- Business
- The Star
Klang Valley to remain mainstay of industrial hubs
Knight Frank Malaysia said that between 2020 and 2024, annual industrial transaction values in the Klang Valley and Johor Baru grew by an 18% and 40% four-year compounded annual growth rate, respectively. PETALING JAYA: Klang Valley will likely remain the largest industrial hub in the country on the back of its relatively more mature industrial parks, infrastructure and strategic access to ports, according to Kenanga Research. Specifically on Johor, the research house gathered that its industrial and data centre boom commenced with the launch of YTL Green Data Centre Park in Kulai in August 2022. This kick-started interests by large multinationals in the state, further fuelling its investments into that space, it noted. The research house said with the officiation of Johor's Forest City Special Financial Zone in September 2024 and Johor-Singapore Special Economic Zone in January 2025, in addition to the increase in cross-border activities with Singapore stemming from the upcoming launch of the Rapid Transit System link, it believes that activities and investments into the state could remain buoyant in the near-to-medium term. According to property consultancy company Knight Frank Malaysia, between 2020 and 2024, annual industrial transaction values in Klang Valley and Johor Baru (including Kulai) grew by an 18% and 40% four-year compounded annual growth rate, respectively. While this could be attributed to pent-up demand coming out of the Covid-19 pandemic, it ties in with the increase of capital investments injected into the mentioned regions, Kenanga Research said. Kenanga Research believes Penang remains a hot spot for industrial activity, mostly dominated by the technology and semiconductor sectors. The brokerage recently co-organised a real estate event with Knight Frank on the property consultancy's exclusive launch of its half-yearly real estate highlights for the first half of 2025. Focusing on high-rise residential trends, Knight Frank highlighted that transaction volumes and values in Kuala Lumpur had picked up mostly in 2022, coming out of the pandemic. Knight Frank found it worth noting as well that the growth of average transaction values had outpaced volumes, reflecting a higher appetite by homebuyers for higher-priced homes. From Kenanga Research's checks among property developers and mortgage lenders, the pick-up in transaction volumes in 2022 could have been made up by more affordable offerings (RM300,000 to RM500,000) which led market launches at that time, owing to development being stalled by the movement control orders between 2020 and 2021. On the data centre front, there was a surge in data centre investments post-Covid-19, with total investment reaching RM160bil in 2024, more than triple the amount in 2023. However, the sector is now entering a more mature execution phase of announced plans, Knight Frank noted. In the first half of 2025, digital investments totalled RM42.6bil versus RM66.2bil in the similar period last year, with over 70% allocated to data centres and cloud infrastructure. While Johor continues to lead in data centre development, Klang Valley has also seen healthy activity.
New Straits Times
31-07-2025
- Business
- New Straits Times
MM2H generates RM839.9mil for Malaysia's economy
KUALA LUMPUR: The Malaysia My Second Home (MM2H) programme has made a significant contribution to national revenue and the economy, generating a total of RM839.9 million. Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing said this includes RM597.5 million in fixed deposit investments, RM237.2 million in real estate investments and RM5.2 million in participation fees. "The economic spillover from the introduction of the new MM2H policy has also benefited other sectors such as education, healthcare and insurance services. "These figures not only reflect Malaysia's appeal as a destination of choice but also demonstrate participants' confidence in the country's economic stability and long-term prospects," he said in a written parliamentary reply to a question from Datuk Muhammad Bakhtiar Wan Chik (PN–Balik Pulau). Tiong said the ministry received 3,019 applications under the newly announced conditions from October 2024 until June this year. There were 48 applications under the Platinum category, 137 under the Gold category, 2,434 under the Silver category and 400 under the Special Economic Zone or Special Financial Zone category. Of this total, 1,294 applications have received MM2H pass endorsements, comprising 19 participants under the Platinum category, 61 under the Gold category, 1,020 under the Silver category and 194 under the Special Economic/Financial Zone category. New guidelines for the MM2H programme were released in June last year, which lowered the financial requirements for applicants but imposed a new property rule. Applicants are now required to buy a property in Malaysia worth between RM600,000 and RM2 million, depending on the visa category they apply for.
Business Times
24-04-2025
- Business
- Business Times
Forest City special financial zone lands first family offices as Johor courts investors
[KUALA LUMPUR] Forest City's Special Financial Zone (SFZ) in southern Malaysia has secured its first two family offices, marking an early milestone in Johor's efforts to attract high-value investors through its economic corridor with Singapore. Malaysia-based CMY Capital Family Office and Yow Kee Family Office have both received approvals from Malaysia's Securities Commission to operate within the SFZ, said Johor Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han in a statement on Wednesday (Apr 23). Another 30 companies, including firms from Malaysia, Singapore and Thailand, have expressed interest in setting up operations in the zone, he added. The SFZ, which offers tax incentives including a zero to 5 per cent corporate tax rate and a 15 per cent flat income tax for knowledge-based workers, is a key component of the Johor-Singapore Special Economic Zone (JS-SEZ). Family offices must manage a minimum of RM30 million (S$8.9 million) in assets to qualify for the zero per cent tax rate. The incentives are still being formalised by Malaysia's Finance Ministry, but applications are currently being reviewed on a case-by-case basis to expedite approvals, Lee said, adding that customised incentive packages are also being offered to major investors. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up To facilitate investor entry, the Johor government has set up the Invest Malaysia Facilitation Centre - Johor, a one-stop service centre that has handled over 250 inquiries since January. Each investor is assigned an account manager to coordinate with federal agencies, local authorities and utilities. The newly launched SFZ is viewed by many as a potential turning point for Forest City. The project is a collaboration between China's Country Garden Group and Esplanade Danga 88, a private firm backed by the Johor government and the Sultan of Johor. This US$100 billion project comprising four artificial islands in the Strait of Johor – conceived a decade ago with the aim of housing 700,000 residents by 2035 – has faced significant delays due to various factors including the master developer's financial challenges and the Covid-19 pandemic, have resulted in a current occupancy rate of only around 1 per cent. The arrival of the first batch of investors in the Forest City SFZ has fuelled optimism among market observers. They believe that the SFZ, combined with the broader incentives offered within the JS-SEZ, will continue to attract significant investor interest. This optimism follows the Malaysian Investment Development Authority's recent unveiling of a comprehensive tax incentive package for the JS-SEZ in February. Key among these incentives is a special corporate tax rate of 5 per cent for up to 15 years. Rahman Hussin, senior partner at public policy consultancy Agyl & Partners, noted that the incentives, particularly the 5 per cent tax rate, rank among the most competitive in South-east Asia. He noted that the JS-SEZ's tax benefits either match or exceed those offered by Thailand's Eastern Economic Corridor (EEC) and Indonesia's Batam Free Trade Zone. 'Johor's proximity to Singapore and ongoing infrastructure investments further bolster its regional appeal,' he added. Julia Goh, senior economist at UOB Malaysia, noted that the income tax rates designed to attract talent are comparable to those in Singapore and Hong Kong. 'Overall, we anticipate that these initial incentives and policies will be expanded and refined to progressively support the JS-SEZ,' she added.
Business Times
23-04-2025
- Business
- Business Times
Forest City SFZ lands first family offices as Johor courts investors
[KUALA LUMPUR] Forest City's Special Financial Zone (SFZ) in southern Malaysia has secured its first two family offices, marking an early milestone in Johor's efforts to attract high-value investors through its economic corridor with Singapore. Malaysia-based CMY Capital Family Office and Yow Kee Family Office have both received approvals from Malaysia's Securities Commission to operate within the SFZ, said Johor Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han in a statement on Wednesday (Apr 23). Another 30 companies, including firms from Malaysia, Singapore and Thailand, have expressed interest in setting up operations in the zone, he added. The SFZ, which offers tax incentives including a zero to 5 per cent corporate tax rate and a 15 per cent flat income tax for knowledge-based workers, is a key component of the Johor-Singapore Special Economic Zone (JS-SEZ). Family offices must manage a minimum of RM30 million (S$8.9 million) in assets to qualify for the zero per cent tax rate. The incentives are still being formalised by Malaysia's Finance Ministry, but applications are currently being reviewed on a case-by-case basis to expedite approvals, Lee said, adding that customised incentive packages are also being offered to major investors. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up To facilitate investor entry, the Johor government has set up the Invest Malaysia Facilitation Centre - Johor, a one-stop service centre that has handled over 250 inquiries since January. Each investor is assigned an account manager to coordinate with federal agencies, local authorities and utilities. The newly launched SFZ is viewed by many as a potential turning point for Forest City. The project is a collaboration between China's Country Garden Group and Esplanade Danga 88, a private firm backed by the Johor government and the Sultan of Johor. This US$100 billion project comprising four artificial islands in the Strait of Johor – conceived a decade ago with the aim of housing 700,000 residents by 2035 – has faced significant delays due to various factors including the master developer's financial challenges and the Covid-19 pandemic, have resulted in a current occupancy rate of only around 1 per cent. The arrival of the first batch of investors in the Forest City SFZ has fuelled optimism among market observers. They believe that the SFZ, combined with the broader incentives offered within the JS-SEZ, will continue to attract significant investor interest. This optimism follows the Malaysian Investment Development Authority's recent unveiling of a comprehensive tax incentive package for the JS-SEZ in February. Key among these incentives is a special corporate tax rate of 5 per cent for up to 15 years. Rahman Hussin, senior partner at public policy consultancy Agyl & Partners, noted that the incentives, particularly the 5 per cent tax rate, rank among the most competitive in South-east Asia. He noted that the JS-SEZ's tax benefits either match or exceed those offered by Thailand's Eastern Economic Corridor (EEC) and Indonesia's Batam Free Trade Zone. 'Johor's proximity to Singapore and ongoing infrastructure investments further bolster its regional appeal,' he added. Julia Goh, senior economist at UOB Malaysia, noted that the income tax rates designed to attract talent are comparable to those in Singapore and Hong Kong. 'Overall, we anticipate that these initial incentives and policies will be expanded and refined to progressively support the JS-SEZ,' she added.
