When investors look at foreign countries to put their money into, one of the key points to consider is the country's political stability. It is therefore critical for Malaysia's leaders to prioritise regaining the trust of foreign investors.
Speaking at the EdgeProp.my Virtual Fireside Chat entitled “Impact of MCO 2.0 on the Malaysian Property Sector” on Jan 19, 2021, Real Estate and Housing Developers’ Association Malaysia (Rehda) president Datuk Soam Heng Choon pointed out that the ongoing political situation in the country could be a reason that has influenced foreign investors’ interest in Malaysia. Watch the chat here.
“I’m surprised we are losing to Indonesia. Amazon and Google have gone there. These are digital companies and do not require affordable labourers, which is Indonesia’s strength,” he noted.
Soam added that only by addressing the elephant in the room can the economy move forward. “When the economy moves, people will have more income and are more willing to buy property, so that we (developers) can provide more jobs. Because of the political overhang, the economy is not moving and foreign investors are not coming in.”
Meanwhile, deputy president of Master Builders Association Malaysia (MBAM) Oliver Wee Hiang Chyn said he is not that worried about the economy post Covid-19 as he believes the people in the industry are experienced, given the past history in excellent economic recoveries.
Instead, he noted that different property industry stakeholders such as Rehda, Malaysian Institute of Architects (PAM) and MBAM should sit down together and reach a mutual agreement on how they should tackle the current industry challenges and problems to mitigate the damage and losses.
“Rather than focusing on what projects we are going to have post Covid-19, this is what we should focus on instead,” added Wee.