Latest news with #economic transformation
Free Malaysia Today
4 days ago
- Business
- Free Malaysia Today
Changes in govt hasn't boosted Bumiputera middle class, says Rafizi
The statistics department recently said the Bumiputera community is expected to grow from 69.4% in 2020 to 79.4% in 2060, while the Chinese and Indian communities are projected to decline to 14.8% and 4.7%, respectively. PETALING JAYA : Former economy minister Rafizi Ramli says successive changes in government have failed to improve the productivity of the Bumiputera middle class, a key issue he believes lies at the heart of Malay insecurity. Speaking on the latest episode of the Yang Berhenti Menteri podcast, the Pandan MP said boosting Bumiputera participation and performance in the economy was crucial not only for long-term development, but also for bridging racial divides and achieving political stability. 'We've had many changes in government, but we still haven't managed to energise the Bumiputera middle class to be as productive and dynamic as the Chinese middle class,' he said. 'If we can close that gap, we'll reduce economic insecurity. And when you reduce that insecurity, Malays will stop saying things like 'habis la kita' (we're doomed).' Rafizi said Malaysia's political polarisation is deeply tied to economic disparities, especially among ethnic groups. 'When we talk about the economy, population breakdown matters — because that's your market. 'As the Bumiputera population grows, their role in strengthening the economy becomes more important,' he said. He said this was the rationale behind the Bumiputera Economic Transformation Plan 2035 (Putera35), which was designed to improve Bumiputera participation in the economy without sidelining other communities. Rafizi stressed that the initiative was not about increasing entitlement or promoting ethnic quotas, such as insisting all CEOs must be Malay. Instead, he said Putera35 was meant to create policies that are fair, sustainable and result-oriented. He added that closing the economic gap was a more effective path to political stability than relying on campaign speeches before general elections. Earlier this month, the statistics department said Malaysia's population is projected to peak at 42.38 million in 2059 before gradually declining. The Bumiputera community is expected to grow from 69.4% in 2020 to 79.4% in 2060, while the Chinese and Indian communities are projected to decline to 14.8% and 4.7%, respectively.
Zawya
6 days ago
- Business
- Zawya
South Africa: Durban's uMhlanga booms with $79mln oceans North Tower launch and $73mln leisure development plan
In a major boost to KwaZulu-Natal's economic transformation and Durban's rising status as a premier investment destination, the Oceans Umhlanga Mixed-Use Development will unveil the R1.4 billion North Oceans Umhlanga Residential Tower on Friday, 25 July. This milestone project cements uMhlanga's role as a key property and lifestyle hub in South Africa. Part of the R4.3 billion Oceans Umhlanga project, the North Tower launch builds on the success of the Oceans Mall—an internationally awarded retail destination—and the five-star Radisson Blu Durban Umhlanga Hotel. Since its inception, the development has helped redefine urban investment in KwaZulu-Natal, drawing global attention and delivering significant job creation and retail transformation. 'This is not just a property launch; it's a celebration of how far Durban has come, and a reflection of the developers' (Vivian Reddy and Rob Alexander) tenacity and unwavering perseverance,' said Brian Mpono, CEO of Oceans Umhlanga Development. 'The Oceans Umhlanga development has brought global attention to the potential of this province. We're proud to now open the doors to a residential offering that reflects both international luxury standards and local ownership in a way South Africa has never seen before.' Oceans North Tower: Luxury Living Meets Local Impact The Oceans North Tower introduces 258 high-end luxury apartments, ranging from studio to four-bedroom units and penthouses, all with panoramic ocean views of the iconic East Coast. Every unit includes premium finishes, direct access to Oceans Mall, and cutting-edge features designed for long-term property investment in Durban. But the project is more than architecture—it's a blueprint for inclusive economic development. Around 50% of the current construction workforce are young, Black South Africans, including a notable number of young Black women—setting a new benchmark for equity in the built environment. Oceans Mall itself embodies the development's inclusive retail strategy: 50% of the retail space is Black-owned 12 out of 14 restaurants are operated by Black entrepreneurs Over 25,000 jobs created during construction—many filled by residents of Inanda, Ntuzuma, KwaMashu, and Blackburn These figures highlight how the project is reshaping communities previously overlooked by large-scale investment. Employment opportunities in retail, hospitality, construction, security, logistics, and cleaning are now accessible to residents from surrounding areas. 'We are witnessing lives change in real time,' continued Mpono. 'Young people are securing jobs in flagship luxury boutiques. Women are running thriving restaurants. Fathers who once struggled to find stable employment are now part of reliable teams in logistics and security. These are not just numbers on a spreadsheet—they represent families with renewed hope, dignity, and a real opportunity to participate in the economy.' A Landmark Investment for uMhlanga Strategically located on Lagoon Drive in the heart of uMhlanga, the North Tower features: Resort-style pools Concierge services Children's play areas Yoga zones Ducted air-conditioning Inverter readiness Direct beachfront and mall access The development is expected to play a central role in Durban's post-pandemic economic recovery and fuel national real estate investment interest in the province. 'The completion of the Oceans Umhlanga Residential Towers is a vote of confidence from the developers—confidence in Durban, in our people, and in the kind of future we can build when world-class investment meets authentic transformation.' — Brian Mpono R1.3 Billion South Tower Leisure Investment Teased At the same time, Mpono previewed an upcoming R1.3 billion leisure development in the Oceans South Tower, which will further enhance uMhlanga's status as a top-tier lifestyle destination and magnet for international and domestic investors. Exclusive Launch Event on July 25 The North Tower launch event on Friday, 25 July will gather investors, civic leaders, government officials, and media for an exclusive preview of the residential units, with live entertainment, gourmet refreshments, and keynote addresses from Vivian Reddy, the Mayor, the Premier of KZN, and economic analysts.
Arabian Business
7 days ago
- Business
- Arabian Business
Riyadh's rental gold rush is just beginning
Saudi Arabia is undergoing one of the most ambitious economic transformations of the 21 st century, and nowhere is this more visible than in Riyadh, the capital and economic centre of the country. Much like New York in the 1930s or Dubai in the 1990s, the capital is experiencing a period of rapid, visionary growth that is reshaping its urban fabric and global standing. At the heart of this transformation is a vibrant, maturing real estate sector, buoyed by Vision 2030, demographic shifts, and rising demand for quality living. For global investors, Saudi Arabia's luxury real estate market is emerging as a smart, strategic option. The Kingdom's real estate market has displayed remarkable momentum over the past five years. Valued at approximately SAR 256.9 billion in 2024, it is projected to exceed SAR 412.5 billion by 2030. This represents a compound annual growth rate of nearly 9 per cent, driven by large-scale public investments and evolving domestic demand. Riyadh's property landscape sees transformation Fuelling this growth is a population boom in key urban centres. Riyadh is on track to grow from 7 million in 2022 to 9.6 million by the end of the decade. Crucially, this includes a substantial increase in the expatriate population, thanks to the Kingdom's new residency incentives and its push to become a regional business and investment hub. As the real estate market continues to expand, the luxury residential segment stands out as a high-potential frontier. In 2024, it was valued at approximately SAR 56 billion, projected to exceed SAR 75 billion by 2030, reflecting increasing demand for high-quality housing and the Kingdom's strategic focus on livability and urban excellence. At the same time, while homeownership remains a central pillar of national housing policy, the luxury rental market in Riyadh is gaining significant traction. For many residents, especially affluent expatriates, renting offers the flexibility and immediacy that ownership, due to its extensive prerequisites, does not always provide. Eligibility requirements for ownership, such as Premium Residency status or a minimum investment threshold of SAR 4 million, can place it out of reach for many potential residents. This reality has bolstered the appeal of high-end leasing options, with luxury rentals emerging as a deliberate lifestyle choice. The demand is expanding, as recent data shows that residential rental yields rank among the highest within the region, ranging between 9.1 per cent and 11.5 per cent in Riyadh, underscoring the segment's growing investment potential. Premium leasing The widening gap between rising lifestyle expectations and the current supply of premium rental inventory presents a clear opportunity for developers and operators. As the Kingdom deepens its global integration, both citizens and expatriates are seeking residences that match elevated standards in design, technology, and overall living experience. The growing appetite has translated into tangible market gains. According to recent data, residential rental rates in the capital rose by 10–23 per cent year-on-year in 2024, with the most significant increases observed in upscale districts. These dynamics reflect both the resilience and the rising value of the luxury leasing market, underscoring its appeal as a high-potential investment channel within Saudi Arabia's evolving real estate landscape. Investors focused on the leasing segment are well-positioned to benefit from these evolving dynamics. Several converging factors collectively shape a supportive environment for luxury real estate. Rapid demographic growth is creating sustained demand for high-quality housing. Riyadh alone is expected to absorb over 220,000 new residential units by 2030, rising to more than 305,000 by 2034. Complementing these dynamics are a series of policy incentives that have bolstered the real estate ecosystem. The Saudi Real Estate Refinance Company (SRC) has committed over SAR 75 billion in refinancing efforts to support developers and streamline market liquidity, while new financing models and streamlined leasing regulations are improving access across the board. Although supply is scaling up through major developments, much of this inventory is still in the pipeline and expected to come online gradually between 2025 and 2030. This supply lag offers a window of opportunity for investors and operators to meet current demand and establish a strong presence in the market ahead of delivery cycles. In this context, institutional and high-net-worth investors should look beyond traditional ownership models and consider the value in leasing-focused strategies. In Saudi Arabia, luxury is no longer defined solely by the asset itself, but by the full living experience. Properties that deliver on that, especially in the rental space, are attracting long-term tenants, commanding premium lease rates, and contributing to stronger overall returns. Saudi Arabia is reimagining how its cities function, who they serve, and what kind of lifestyle they enable. As this reconfiguration unfolds, the leasing market will play a vital role in delivering flexible, high-quality housing options for a globally mobile and increasingly discerning population. Investing in Saudi Arabia's premium leasing sector today offers more than income potential. It represents a strategic alignment with the country's broader economic and urban development vision. Luxury rentals go beyond meeting immediate market needs, shaping the next generation of Saudi living. For investors, operators, and developers who understand this shift, the opportunity is clear: to be part of a forward-looking, high-performance segment that sits at the intersection of policy, demand, and growth.
Mail & Guardian
7 days ago
- Business
- Mail & Guardian
Beyond the balance sheet: Costs and benefits of broad-based BEE
Any discussion about black economic empowerment must weigh up its benefits, addressing historical injustices and the costs of not transforming the economy. Photo: File The current media debate around broad-based black economic empowerment (broad-based BEE) has brought fresh attention to the policy's effect on the economy — raising important questions about its effectiveness, costs and outcomes. As this conversation grows louder, it's worth taking a closer look at some of the arguments being made. An example from the debate is a recent study released by Solidarity and the Free Market Foundation (FMF), which arguably overlooks certain key economic implications of B-BBEE. Titled The Costs of B-BBEE Compliance, the report estimates that broad-based BEE may reduce South Africa's GDP growth by as much as 1.5 to 3% annually, potentially resulting in 96,000 to 192,000 fewer jobs each year. It further contends that the policy disproportionately benefits a narrow elite while imposing undue compliance costs on the broader economy. While such figures demand scrutiny, they also warrant a critical examination of the underlying assumptions, methodology and, crucially, the broader socio-economic context in which broad-based BEE operates. One of the most significant concerns with the report is its presentation of correlation as causation. The paper attributes specific percentages of GDP loss and job losses directly to broad-based BEE but does not demonstrate how these effects were isolated from South Africa's myriad economic problems. South Africa's macroeconomic environment remains deeply constrained by structural impediments such as: Chronic electricity and water shortages, including load shedding; Global economic headwinds; Endemic corruption; and Policy uncertainty and governance deficits. Attributing complex macroeconomic trends solely to broad-based BEE risks simplifies a nuanced reality and underestimates the multifactorial nature of South Africa's growth constraints. Equally important is the report's limited treatment of the potential benefits of broad-based BEE. Many of which manifest over the medium to long term and are difficult to quantify through conventional compliance cost frameworks alone. Equity equivalent programmes (EEPs) enable multinational corporations, constrained by global ownership structures, to achieve ownership points through local investments in enterprise development, skills transfer and innovation. Far from being passive mechanisms, EEPs represent substantial, targeted injections into the domestic economy. IBM, for example, committed R700 million over 10 years to enterprise development, research and education. This included support for 74 black-owned businesses and fully funded bursaries for dozens of students from disadvantaged backgrounds in critical fields of information and communication technology. Samsung also made a substantial commitment, launching a R280 million equity equivalent investment programme (EEIP) in May 2019, projected to contribute nearly R1 billion to the South African economy over its 10-year duration. This programme aimed for a measurable effect on job creation, specifically targeting the creation of 262 direct jobs and supporting 13 black-owned and women-owned businesses. A notable focus of Samsung's investment is on industrialisation by black people through e-Waste recycling and beneficiation research and development, including the establishment of the first black-owned and operated e-waste beneficiation plant in Africa. These company-specific statistics, alongside broader programmes such as JP Morgan's Abadali EEIP, which aims for an additional 1,000 permanent jobs and R2 billion in financing transactions, underscore the crucial role of EEPs in boosting small and medium enterprises (SMEs), particularly black-owned businesses, by providing essential funding, business support and mentorship. Furthermore, these programmes significantly advance skills development, with more than 2,500 beneficiaries receiving critical skills training, and facilitating technology transfer, aligning with South Africa's national development goals and fostering a more inclusive and skilled workforce. The YES programme directly targets South Africa's intractable youth unemployment crisis. Since its inception in 2018, YES has facilitated more than 186,000 quality work experiences for young people, injecting nearly R11 billion in salaries into the economy. About 45% of participants secure permanent employment after placement, and 17% establish their own businesses, multiplying the long-term economic benefit. The initiative also encourages private sector participation by offering measurable broad-based BEE recognition for companies that create these opportunities. Enterprise and supplier development (ESD) remains a cornerstone of the broad-based BEE framework, driving significant investment into the SMME sector. South African corporates reportedly channel R20 billion to R30 billion annually into ESD programmes, helping integrate black-owned businesses into supply chains and enabling sustainable growth. For instance, the Shoprite Group's CredX programme has provided R10 billion in working capital to suppliers, while its Next Capital initiative has invested R20 million to support new black-owned enterprises. Collectively, such interventions empower black entrepreneurs, expand the tax base and generate employment in communities historically excluded from meaningful economic participation. Why broad-based BEE still matters Perhaps the most profound omission in the Solidarity and FMF report is its decontextualised approach to broad-based BEE's rationale. Apartheid was not merely a political system; it was an economic design that systematically dispossessed black South Africans of land, capital, skills and opportunities. This entrenched economic disenfranchisement cannot be dismantled simply by repealing discriminatory laws. Broad-based BEE emerged as a policy instrument to facilitate redress, promote equitable economic participation and mitigate the persistent structural inequality that threatens social cohesion and long-term stability. Any analysis that fails to account for this historical imperative and the potential socio-economic cost of neglecting it, is incomplete. There is little doubt that broad-based BEE can and should be improved. Calls for greater transparency, genuine empowerment outcomes, and tighter controls to prevent fronting and inefficiency are well-founded. But presenting a one-sided narrative that focuses exclusively on compliance costs while disregarding significant economic and social returns undermines the opportunity for a more balanced, evidence-based debate. As South Africa grapples with the problems of inclusive growth, any meaningful conversation about the future of broad-based BEE must extend beyond a narrow cost-benefit calculus. It must weigh the policy's role in addressing historical injustices, its measurable and often intangible benefits, and the opportunity costs of not transforming the economy. A policy of this nature should not be romanticised or demonised without context. Instead, it demands honest, nuanced discussion, one that prioritises national development, social cohesion and sustainable, broad-based participation in the economy. The question should not be whether broad-based BEE has costs but rather whether we are collectively doing enough to ensure that its benefits are fully realised and that it continues to evolve to serve the South Africa we aspire to build. Safiyya Patel is a managing partner at Webber Wentzel.
Bloomberg
22-07-2025
- Business
- Bloomberg
Salt Lake City Bets on Olympics to Spur Economic Overhaul
Salt Lake City is betting on the 2034 Winter Olympics to jumpstart a lasting economic transformation. Local governments and agencies issued more than $4 billion of municipal bonds this year, fueling a surge of development across the city, including an overhaul of its sports and entertainment arena, the Delta Center, and the area surrounding it. Some economists, however, question the long-term benefits of hosting the games, decrying potential gains as 'exaggerated' or, worse, 'nonexistent.' While investment is rolling in to boost tourism, Utah's housing shortage stands to constrain the region's economic growth. There are just 30 affordable and available homes for every 100 'extremely low-income' renter households statewide, and in Salt Lake City, the median home price has surpassed half a million dollars, putting homeownership out of reach for most residents, Arvelisse Bonilla Ramos reports. Today on CityLab:
