2012 issue 3

FACILITATING & PROMOTING INVESTMENT FOR MALAYSIAN REAL ESTATE | www.malaysiapropertyinc.com

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UNIT LAUNCHED & UNSOLD UNITS OF PROPERTY BY SELECTED STATES, 2008 -2011>> Read more

GRAPHICALLY SPEAKING

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CROSS-BORDER QUERIES

LOOKING FOR INVESTMENT>> View details

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MALAYSIA REAL ESTATE PERFORMANCE OVERVIEW AND OUTLOOK 2012Institutional investment drive growth >> Read more

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COVER STORY pg2

IN A NUTSHELL

GLOBAL PRIVATE EQUITY

FUNDRAISING OVERVIEW

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A SINGAPORE OPPORTUNITY TO MALAYSIAN DEVELOPERS >> Read more

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TRANSFORMING MALAYSIA TOWARDS HIGH INCOME ECONOMY

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SPECIAL INTERVIEWREAL ESTATE INVESTMENT

STRATEGY AND

NEW BUSINESS IN MALAYSIA

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Singapore is Malaysia’s number one market for real estate. This is not surprising given the proximity and close business, trade and investment ties. As bilateral relations improve and more investments are made to increase the speed of connectivity between the two countries, Malaysia becomes a natural choice for further expansion of Singaporean industrial activities that are land-intensive. Familiarity with the Malaysian culture, language and terrain makes it easier for Singaporeans to invest in Malaysia. Time has proven this and Singapore remains Malaysia’s single largest investor for the past 3 years.

Limitations to land reclamation and limited expansion for real estate on the island and rising population density as a result of successful immigration policies drawing in knowledge workers have made its low density neighbour, Malaysia a natural choice for Singaporeans to invest in real estate. There are several types of

by Veena Loh

COVER STORY 2

other countries and many of them own properties in Singapore given the relatively liberal policy on foreign ownership.

Singapore has always been the first choice for foreign investors in the region because it is a very efficient financial centre, offering a stable value for holding investment assets combined with the ease of transfer of money at competitive costs and relative ease of exit of such funds with little hassle or red tape.

Singapore real estate toppishNotwithstanding this, there can be times when the Singapore property market is volatile. (Figure 2) The Singapore property market has been more volatile than the Malaysian one. In the 1Q2009, the Malaysian house price index fell by 2% compared with 4Q2008 in contrast to the Singapore housing index which fell 15% in the aftermath of the global financial crisis. Currently, property analysts foresees that Singapore is at the top of its cycle and chances are that a bear cycle could begin this year. Malaysia is relatively considered a safe haven for risk-averse investors as well as a safe harbor during turbulent and uncertain times. Figure 3 shows the Malaysian housing index has a stable and rising trend as opposed to a relatively volatile housing index for Singapore.

In addition, Singapore has reversed some of its past liberal policies on rich foreigners.

(continued next page)

A SINGAPORE FOR MALAYSIANOPPORTUNITY

Figure 1: House Price Change q-o-q

investors from Singapore and they fall into the following categories: those that buy to stay, Malaysian diaspora who may have become permanent residents in Singapore and foreigners who invest in Singapore real estate.

Singapore, often labeled as the Switzerland of Asia, has the world’s highest concentration of wealthy people. A sanctuary for the world’s wealthy and their money, Singapore attracts foreigners who value banking secrecy. The number of high-net worth individuals from China and India is expected to nearly triple in a decade by 2018, according to a Merrill Lynch/Capgemini study. Singapore, with its central location, financial infrastructure and stable government will continue to attract these high net worth individuals. A-quarter of its population are expatriates that earn world’s highest income compared to counterparts in

DEVELOPERS

Figure 2: Singapore Housing Index by type 1Q1997 - 1Q2011

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Source: IP Global

Legend: Detached Semi-detached Condominium

Terrace Apartment

Index 4Q1998

=100

Q1 Q2 Q3 Q4

2011 1.29 4.02 -1.29

2010 0.59 2.48 2.42 2.44

2009 0.47 2.08 0.76 2.10

2008 2.22 0.16 1.94 -1.83

2007 0.24 0.16 1.21 0.64

Q1 Q2 Q3 Q4

2011 2.21 1.96 1.33 0.24

2010 5.61 5.26 2.93 2.74

2009 -14.07 -4.72 15.75 7.39

2008 3.75 0.17 -2.37 -6.06

2007 4.84 8.28 8.25 6.75

Source: NAPIC

Source: URA

Malaysia

Singapore

Malaysian housing index has a stable and rising trend as

opposed to a relatively volatile housing index

for Singapore

“

COVER STORY 3

(from previous page)Now foreigners can no longer qualify to become permanent residents through just placing money in the island. As a result, some of these rich global investors are starting to look at other countries for a second home.

Singapore recently has tried to rein in runaway prices by introducing short term measures such as penalties for purchasing second and third properties in terms of additional stamp duty and lower loan to value ratios for financing for foreigners.

This has cooled the property market somewhat and attention has moved from Singapore to elsewhere especially into Iskandar, KL and Penang. By default, the 10% additional buyer’s stamp duty and the increase in Real Property Gains Tax has made Malaysia a considerably cheaper entry into real estate.

Chinese & Indonesians investors look elsewhereIn contrast to the smaller foreign ownership of Malaysian property, the number of private property transactions by foreigners and permanent residents from Singapore comprise 30% of Singapore home sales. Mainland Chinese account for 25% of these purchases followed by Indonesians. When the Singapore property market softens, Malaysia becomes a very credible second choice to this pool of investors.

Malaysia has abundant land, lower cost of living, health and medical facilities that rivals Singapore. As the cost of living is high in Singapore, those who retire may find it difficult to make ends meet if they

should live long and use up their Central Provident Funds or Medisave. Singaporeans live longer than most with a life expectancy of 82 years, a shade away from Japan and one of the fastest aging societies in the world.

While Singapore ranks sixth largest in terms of MM2H with only 78 in 2011, these numbers are likely to increase with an aging population in Singapore. A report published by Manulife Asset Management said that 9% of the Singaporean population is above 65 but by 2050 this percentage will rise to 32%. This will also have implications for the demand for Malaysian retirement villages and health tourism and hence the need for Malaysian developers to brand themselves in Singapore if they are serious long term industry players.

Profile of Singaporean investorRanked third highest in per capita income in Asia, Singaporeans have strong purchasing power. According to a survey by Ascendant Assets Pte Ltd, the typical profile of a Singaporean property investor is fairly cash rich. Almost 42% are holding on to between S$100,000-S$400,000 of cash on hand. The average age is 46 and 82% of the respondent are married. They are generally risk-averse and unwilling to accept large declines in value even if it means the potential for higher returns. Generally speaking, these property investors are generally not the speculative type and are prepared to hold on to their investments for more than 10 years. However, these investors are not as familiar with the different locations in Malaysia and developers need to also brand the location of their projects and their company when exhibiting in Singapore.

Singaporean preferences“Generally, our Singaporean neighbours are in favour of higher-end developments, especially projects with strong security system, lush green environment, and are lifestyle-driven,” said Dato’ Wan Abdullah of UEM Land. He said that majority of foreign buyers in Nusajaya, Johor, were Singaporeans. Singaporeans are also fond of Penang, a state island where they can relate their experiences on Singaporean real estate as well as Malacca which still offers authentic Nyonya cuisine and medical health facilities.

DiasporaLast but not least, familiarity of a country is a very strong basis for investment in property. According to SP Setia, “About

75% of our sales in Melbourne are to Malaysians. More than half of the sales in Singapore are to Malaysians.” Nearly half of the Malaysian diaspora lives in Singapore. The higher salary and stronger exchange rate that Malaysians enjoy in Singapore enables many of the Malaysian diaspora to buy Malaysian property assets for investments or for their relations to stay.

Window of opportunityMalaysian developers should take this opportunity to look at pushing their projects to Singapore to take advantage of the gap in investments due to the new regulations. Singaporeans have long memories and remember the years during the financial crisis when many developers abandoned their projects. Though it is now a thing of the past, there are hurdles to overcome in terms of perception. Companies like Gamuda and SP Setia have penetrated the market by just addressing these concerns and providing solutions such as gated and guarded community living and extraordinary green features.

Developers can raise profile under MPI bannerMalaysia Property Incorporated (MPI) which has been in Singapore for the last two years and as a government agency tasked with providing the right message to foreign investors about Malaysian property has been successful in shedding that perception of negativity. Developers who have used the MPI showroom on the Ground Floor of the Singapore Stock Exchange building in Shenton Way have seen their profile rise in Singapore as Singapore investors begin to appreciate the quality of the developers promoted under the MPI banner. The showroom in Singapore serves to provide a continuous presence for Malaysian developers to market themselves in Singapore. At the same time, developers save on the cost of advertising when they exhibit their projects collectively as a group.

“We believe it is a good time to enter the Singapore market to promote high value Malaysian real estate. Joland launched its new Paragon Residences at the Malaysian Property Gallery and sold 170 units between 30th June to 15th July. The bulk of the units were sold in the first hour of launch and the last few units facing the seafront had to be balloted.”

For more information about Malaysia Property Gallery in Singapore, kindly contact Michael A. David at michael@malaysiapropertyinc.com

225

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0

1999

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2009

2011

Source: NAPIC, URA

Figure 3: House Price Index

Singapore (1998=100)

Malaysia (2000 =100)

SPOTLIGHT on Malaysia - Japan Relations 4

Datuk Seri Mohamed Iqbal is currently the Secretary of Malaysia-Japan Economic Association (MAJECA), Secretary-General of the Asean Business Forum, Chairman of the Malaysian Institute of Management and Chairman of the Business Advisory Council of United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP).

Datuk Seri Mohamed Iqbal has served in the past as Associate Professor in the Faculty of Economics and Administration, University of Malaya and Executive Director of Institute of Bankers Malaysia, an institute set up by the banking industry on the initiative of the Bank Negara Malaysia.

Property Quotient (PQ) interviewed him recently to gain insight on transforming Malaysia towards high income nation and the Japanese corporation’s perception on Malaysia as a low cost manufacturing location. PQ: Many developing countries have tried to move upwards from the upper middle income nation status but have found great difficulty in doing so. Many end up stuck in the middle income trap. Please give your honest opinion as to whether Malaysia has the requirements that will make it succeed in getting out of the middle income trap.

PQ:多くの途上国は、上位中所得国の状態から上方に移行しようと努力していますが、そうすることで大きな困難にも直面してきました。結果として多くの場合が、中位所得という罠にはまってきました。マレーシアに関しては、中所得の罠から抜け出せるための要因があるかどうか、あなた方の率直な意見を頂戴したいと思います。

DSMI: Generally, costs of all kinds rise over time due to many factors, labour costs, wages and salaries also rise. So long as the rise is non-inflationary, it is a desirable trend. In fact a rise in income due to greater skills and job enrichment is one of the objectives from a micro-

or a macro-economic perspective. The problem arises when by a policy directive or a decree, incomes are forced to rise on the assumption that the aggregate income so achieved is an indication of the general well-being of an economy. Malaysia’s desire to become high income nation is laudable. At the same time there are efforts to scale up skills and productivity as well as technological innovation to producing high-end high value products. Therefore, the possibility to move gradually into a high income nation is there.

Majeca follows very closely Japanese trends and innovations. Having contributed significantly to private sector participation from Japan. The Japanese policy of doubling the income is an example Malaysia can draw lessons. The conditions in the sixties and seventies are not the same now. However, the objectives and policy measures are not too dissimilar. The Malaysian initiative is a timely move.

Datuk Seri Mohamed Iqbal (DSMI): 一般的に、あらゆる種類の費用が多くの要因により次第に上昇し、人件費、賃金や給与も上がりますが、インフレでない限りにおいては、それは望ましい傾向であります。実際の大幅な技術並びに労働性の向上に起因する所得の上昇は、ミクロやマクロ経済の観点から、目標とされるものの一つです。問題は、政策策定または指令によって、所得が経済の健全性の一般指標であることを前提として、総所得増加のために、所得が上昇を余儀なくされた場合に発生します。高所得国になろうというマレーシアの願望は称賛に値します。同時に、技術と最高級品・高付加価値製品の製造に生産性だけでなく、技術革新をスケールアップするために努力をおしみません。したがって、高所得国に徐々に移行する可能性があるわけです。

PQ: Would it be difficult to change the perception of the Japanese of Malaysia as a low cost manufacturing location?

PQ: マレーシアの低コストの製造拠点としての認識を、日本人が変更することは難しいでしょうか？

DSMI: The Japanese are realistic and know that Malaysia is no longer a low-cost production base. Also, Malaysia is no longer competitive in ASEAN and in the rest of the world for electric and electronic products. The Japanese are well aware of the quality of the workforce - educated and able to acquire skills on a fast track. These characteristics are attracting high-end technologies such as nano and biotechnologies. There is a lot more to be done by Malaysia to excite

the Japanese and attract them to locate their research and production centres in Malaysia.

DSMI: 日本人は現実的であり、マレーシアはもはや低コストの生産基地ではないことを知っています。また、マレーシアは、電気•電子製品分野ではASEANやそれ以外の諸国間ではもはや競争力を失っています。日本人はよく教育され、早く技術を習得できる労働力の見極めに熟知しています。これらの労働力の特性は、ナノ、バイオテクノロジーなどのハイエンドの技術を引き付けています。日本人の注目を集め、マレーシアでの研究や生産拠点の設立に向け、マレーシアが行うべきことはまだまだたくさんあります。

PQ: What else do you think Malaysia can do to help it work towards a high income nation?

PQ: あなたは、マレーシアが、高所得国に向けての活動を支援する他に何ができるかと思いますか？

DSMI: The 80:20 rule may be alluded to in this respect. The focus is on the 20% of the population who may be contributing 80% of the income. If the 80% of the lower end population is not addressed in this effort, the income disparity will be widened. There should be assertive efforts to not double, but treble or quadruple the income of these people especially those in the rural and less developed regions of Malaysia.

DSMI: 80:20ルールは、この点で言及することができます。焦点としては、収入の80％に貢献しているであろう20％の人々にあります。もし８０％の低所得の人々が放っておかれれば、所得格差は拡大されます。所得格差を倍増しないように、特に農村部や低開発地域の人々には３倍や４倍の所得格差が生じないように断固とした努力が必要です。

(continued next page)

by Veena Loh

TRANSFORMINGMALAYSIA TOWARDS

HIGH INCOME ECONOMY

Datuk Seri Mohamed IqbalSecratary, MAJECA

SPOTLIGHT on Malaysia - Japan Relations 5

(from previous page)

PQ: How do the Japanese see their role as Malaysia moves towards a high income nation?

PQ: 日本は高所得国に向けたマレーシアの動きにたいする日本人の役割をどのように見ていますか？

DSMI: The Japanese are very positive about Malaysia. The almost five decades of friendships are excellent trade relations, coupled with about 30 years of participation in industrial ventures, is a very rich experience to cherish. On this track record, the opportunities are bright for the future.

DSMI: 日本人はマレーシアについて非常に肯定的でありました。友情のほぼ五十年は非常に優秀な貿易相手国で、産業•ベンチャーへの参加の約30年は非常に重要な経験となりました。こういった実績は、将来のために明るい機会となっています。

PQ: Malaysia’s labor cost is likely to increase with the minimum wage rate. Will that affect the Japanese companies who have invested here?

PQ: マレーシアの労働コストは、最低賃金率が増加する可能性があります。それはここで投資している日系企業に影響を与えるのでしょうか？

DSMI: In the past, the cheap labour and the labour component of the mass-produced goods were critical factors. These days are over. High end products produced in Japan with Japanese labour and technical expertise is done so at very high cost. Japan has to bring down this cost to compete with other technologically advanced countries. The same expertise can be sourced in Malaysia at a competitive cost. High income for Malaysia, lower factor cost compared to Japan. It is a win-win formula. This would be the future direction.

DSMI: 過去には、量産品の安価な労働力と労働力成分が切実な因子でありました。こういった時代は終わりました。日本の労働力と技術的専門知識により、日本で生産されたハイエンドの製品は非常に高いコストになっています。日本は他の技術先進国と競争するためにこのコストをダウンさせる必要があります。同様な専門知識を、競争力のあるコストで、マレーシアで供給することができます。マレーシアにとっては高所得、日本と比べてより低いコスト。それはwin-win（相互利益）の式です。これは、今後の方向性であると思われます。

PQ: What sort of Japanese companies would be interested to invest in the

economically transformed Malaysia?

PQ: 日本のどのような企業分野が、経済的に変革を遂げたマレーシアへの投資に興味があるでしょうか？

DSMI: It is difficult to pin-point the type of companies at this juncture. From the Malaysian point-of-view, a few areas are considered priorities. Cutting-edge technology companies with new innovative products being nano and biotechnologies are one cateory. Small and medium scale enterprises which form a web with big industries such as auto industry and bio-medical instruments are another category that hold potential. The latter are becoming non-viable in the current Japanese economic scenario. They may be viable if technology transfer and supply-chain connections are entrenched.

DSMI: 現情勢では、企業のタイプを絞り込むのは困難であります。マレーシアからの見地から、いくつかの領域が優先項目とみなされています。ナノとバイオテクノロジーという新しい革新的な切削技術がその一つの分野です。自動車産業、バイオ-医療機器といった大きな産業とつながりを持った中小規模の企業が可能性を秘めているもう一つの分野があります。後者は現在の日本経済のシナリオでは、非現実的なものとなってきています。技術移転およびサプライチェーンへの連結が確立した場合、それらは現実的な可能性があります。

PQ: What can Malaysia do to help these new types of Japanese industries relocate in Malaysia?

PQ:マレーシアとしては、日本の産業のこれらの新しいタイプのマレーシア移転のために何ができるのでしょうか？

DSMI: The MITI, MIDA missions coupled with MAJECA initiatives has produced excellent results. The same pattern can continue on a broad level. What is needed are specific thrusts, for example, to connect with research and development institutions and, secondly, enterprises which are facing succession problems.

D S M I : 通 産 省 と M I D A の ミ ッ シ ョ ンは、MAJECAの取り組みと相まって、優れた結果を生み出しています。同じパターンは、広範なレベルで継続することができます。例えば、後継者問題に直面している企業には、研究開発機関との連携を推奨していくといった積極的な試みが必要になってきています。

PQ: Malaysia Property Incorporated is a public-private entity that is set up to promote Malaysian real estate internationally. How can MPI work with the Japanese or Majeca to help the coun-

try move towards this transformation?

PQ: マレーシア不動産株式会社は、国際的にマレーシアの不動産を販促していくために設立された官民の事業体です。MPIはこの変換に向けた国の動きを助けていくためにどのように日本人またはMajecaと活動していくことができますか？

DSMI: MPI is industry specific for real estate and related investments. In addition to building environment for human habitation and commercial structures, MPI should develop a niche within its strategy to provide a one-stop focal point for advance technology-driven new ventures. These require not only built-up space, but sophisticated IT infrastructure and power supply without fluctuations in nano caliberations.

DSMI: MPIは、不動産とそれに関連する投資のための専門事業体です。人の居住と商業構造の環境を構築することに加えて、MPIは、その戦略の中で技術主導の新規事業のための総合案内所としての適所を開発していく必要があります。これらの構築された空間だけでなく、洗練されたITの産業基盤とナノの影響による変動に作用されない電源の確保も必要となります。

PQ: Can MAJECA provide the networking to increase business-to-business opportunities between Japanese and Malaysian companies or publicity to this effect?

PQ: MAJECAは、日本とマレーシアの企業のビジネスチャンスを高めていくための宣伝効果のためにネットワークを提供することや宣伝をしていくことができますか？

DSMI: MAJOCA has been in the forefront of private sector business-to-business connections and networking. In fact, it was formed with its counter-part JAMECA to spearhead such initiatives. MAJECA has proposed to the government to extend the Look East Policy beyond the 30 year success. MPI and MAJECA can join hands to contribute to, the targets of a developed nation states by 2020.

DSMI: MAJOCAは、民間企業間のビジネスマッチング、およびネットワーキングの最前線に立ってきました。実際には、そういった陣頭指揮を執るため，カウンターパートであるJAMECAと一緒に設立されました。 MAJECAは30年以上、東方政策を拡張するための提案を政府に行って成功してきました。 MPIとMAJECAは、2020年までに発展途上国となることを策定した国家の目標に貢献するため、手を取り合って進んでいくことができます。

For more information about Malaysia- Japan Economic Association (MAJECA), kindly email to majeca@masscorp.net.my

SPECIAL INTERVIEW Macromeister - Japanese Investment Advisor for Malaysian Real Estate 6

In this report, we introduce the market trend, investment strategy by foreign investors and an interview with the leading developer.

今回のレポートでは、投資すべき物件エリアと物件タイプ、今後の外国人の投資戦略、大手デベロッパーの戦略について調査した内容を紹介する。

Investable areas and type of properties 投資すべきエリアと物件タイプIt is said that popular area and types of property in Malaysia is a condominium located near KLCC area. Despite rising property prices by 8 to 10% compared to the last year, asking rents appear to slow down, especially, luxury condominiums in the districts such as Mont’ Kiara which targets foreign expats. For long-term investments investors need to take into account supply-demand gap for lease.

The reason that rents have been stagnant in these areas is due to the large excess supply rising from the rush of newly built condominium construction and heavy traffic conditions. It is said that the local residents are reluctant to rent in areas of traffic congestion. On the other hand, even in the suburban area, properties with good access have been kept at stable rent levels. For the local residents who use a car to commute to work, traffic congestion is a major factor in selecting to stay. In addition, many of these buyers are not foreign investors, but many local buyers purchase it for use. With respect to the type of property, commercial facilities have been growing steadily rather than condos in both rent levels and prices.

Consumer confidence of Malaysians in recent years has become strong and prices of consumer goods including food has risen. Subsequently, retail tenants have raised their rents.

Commercial properties rental demand is validated where has high possibility of rental growth and are good investable opportunities.

KLCCエリアにあるコンドミニアムは、前年比8％－10％増で価格は引き続き高騰しているものの、賃料水準に陰りが出始めている。特に日本人にも人気のエリア、モントキアラの外国人駐在員向け高級コンドミニアムは継続的に売れているが、長期的な賃貸を考えた場合、賃料ニーズと設定賃料の需給ギャップに注意が必要だ。 これらの地域で賃料が停滞している原因は、新築マンションの建設ラッシュで供給過剰が顕在化し始めていることと、交通事情によることが多い。特にモントキアラでは、交通渋滞を嫌がるローカル層にはあまり人気がない。一方、少し離

れた郊外エリアでも、アクセスがいいエリアでは価格が上がり、比較的賃料水準も安定している。通勤に車を使うローカル層にとって、交通渋滞が少ないことは大きな要因だ。物件タイプに関しては、コンドミニアムより商業施設が賃料、価格ともに順調に伸びている。賃料が上がる原因は、近年マレーシア人の消費意欲が旺盛で、消費に費やす支出も増えているからだ。特に食品・外食等が最もインフレしており、ファンダメンタルが強い。賃貸需要が検証され、賃料上昇が見込める商業物件は投資対象になりうる。

Investment strategy by foreign investors 外国人投資家の投資戦略F o r e i g n i n v e s t o r ’s r e a l e s t a t e investment strategy is to invest in pre-launch projects and resell at the time of completion. Properties like SoHo type and small unit condominiums are popular. However, due to the escalated speculative investment in recent years, the Malaysian government has begun to tight regulation towards foreign investors.

In the newly elected opposition state of Penang, the government announced that minimum purchase by foreigners has been raised from RM500,000 to RM1 million.

(continued next page)

REAL ESTATE INVESTMENTSTRATEGY AND

NEW BUSINESSIN MALAYSIAマレーシアの不動産投資戦略と新事業の可能性

Diversification of portfolios is one of

the key success factor of Sunway Integrated

Properties to be a leading property-

construction group in the region

“

by Tetsuo Ikeda

Bandar Sunway - A resort living within the city

SPECIAL INTERVIEW Macromeister - Japanese Investment Advisor for Malaysian Real Estate 7

(from previous page)

This ruling has not been announced in any other state and has not been extended to MM2H owners. Foreign players observed that the rise of minimum purchase amount may impact on Japanese investors, and the developer may face loss on investment opportunities.

On the other hand, local officials observe that this action won’t impact on the market. Because of the fact that the share of foreign investment is still a minority, majority of buyers are still the local buyers who rather support this policy announcement. This cooling measure on property may cause foreign investors’ strategy to shift to long-term holding strategy with an emphasis on actual demand.

外国人のマレーシアでの不動産投資戦略は、開発型物件へ竣工前に投資し、竣工と同時に転売するスタイルが多い。特に小さいユニットのコンドミニアムやSOHOタイプなど価格が低い物件は人気が高い。しかし、近年の投機的な投資により、政府が外国人投資家に対し規制を強化し始めている。先日、ペナン島で、MM2Hビザを持たない外国人の最低購入額が現在の50万から100万リンギット（1リンギットは約25円）への引き上げが発表され、外国人の投資機会損失を危惧する声を耳にする。一方、現地関係者の中ではあまり影響していない様子だ。なぜなら、いまだ外国人に占める投資は少数であり、ほとんどがローカル層による投資だからだ。むしろこの政策発表は、次期選挙に向けた彼らへのアピールと考えられており、支持されている。今後は、外国人も短期での転売より、実需を重視した長期保有の戦略や現物投資以外の投資にシフトしてくるだろう。

Strategies of leading developer and cooperation with Japanese companies大手デベロッパーの戦略と日系企業との連携We interviewed Mr. Ho, Managing Director from a leading real estate development group, Sunway. Sunway, is an integrated developer with a unique, integrated property business model where they can handle all aspects in the property value chain from landbanking, master planning, construction, property management and sales and recycling capital through the REIT vehicle. Sunway has a track record of developing the township “Bandar Sunway” large, including water park “Sunway Lagoon”, university, shopping mall “Sunway Pyramid” and a hotel in the city Petaling

Jaya. Being sponsored by GIC, the Sunway City-REIT has been listed as the largest REIT in 2010. Sunway’s strength comes from ability to develop integrated developments which pays importance to location and size of landbank. As an example, Sunway’s ongoing development, Sunway Damansara is a thriving commercial center and a retail mall as well as residences comprising terrace houses, bungalows, townhouses and condominium.

The next projects are Sunway Velocity, integrated development located near KL, and Sunway Iskandar which is next to Second Link which connects to Singapore.

For collaboration with Japanese c o m p a n y, S u n way c a n e x p l o r e the possibility of sharing project information, marketing in Japan, developing investment products incorporating Sunway’s project. In addition, there are possibilities of working together on tenant leasing. For example, the large tenant of Sunway’s commercial facility, Sunway Pyramid is Aeon Mall. Due to the opportunities of market expansion into Malaysia, not only a large tenants, but also small and medium-sized tenants can be targeted. Japanese real estate players and service providers may find business opportunities by helping those tenant candidates launch office in Malaysia by partnering with companies like Sunway.

先日、大手不動産開発グループ、サンウェイ社のマネージングディレクターであるホー氏にインタビューを行った。同社は、複合施設開発と建設を得意としており、ペタリンジャヤ市の郊外

に大型ウォーターパーク「サンウェイ・ラグーン」や大学、ショッピングモール、ホテルを含んだ大型タウンシップ「バンダー・サンウェイ」を開発した実績を持つ。 同社は、GICが第2位の大株主となっており、2010年にはマレーシア証券取引所最大のSunway City-REITを上場させている。今後の開発には立地と開発用地の大きさを重視し、ローカル層に人気のあるKL近郊のプロジェクトだけでなく、シンガポール国境近くのイスカンダルでの開発も予定している。今後の展開として、日系運用会社や投資会社、不動産会社と連携の可能性について尋ねたところ、サンウェイのアセットを組み入れたアジアでの投資商品の開発や日本でのマーケティング、案件情報の提供など十分に検討できるという。また、テナントリーシングにおいても連携できる可能性がある。例えば、サンウェイが運営している商業施設サンウェイ・ピラミッドの最大テナントは、イオンモールだ。日系中小テナントはまだ少ないため、今後、日本企業のマレーシア進出に伴い、大型テナントだけでなく中小規模のテナントリーシングニーズも考えられる。ベンチャー企業進出や駐在所の立ち上げで、テナントを誘致できる企業と手を取ることも視野に入れているようだ。

Tetsuo Ikeda [Macromeister] 池田哲郎　[マクロマイスター]

Mr. Ikeda has been involved in real estate fund management business for institutional investors. He currently runs Malaysia Real Estate Investment Club and focused his efforts on investor relation. Prior to the career, he was Investment Analyst at Morgan Stanley Real Estate Fund (MSREF) and Merrill Lynch Japan Securities. He started his career at NYSE listed Investment Company and was in charge of corporate accounting and SEC filing. He received MBA in finance from McGill University in 2009.

愛知県出身。海外大学卒業後、2003年にNYSE上場日系投資会社に入社。その後モルガン・スタンレー・キャピタルでMSREFのInvestment Analyst としてモデリング、ポートフォリオ管理を担当。メリルリンチ日本証券を経て、マレーシア不動産投資クラブを主宰している。カナダ マギル大学 経営学修士 ファイナンス専攻。

Management Team of Sunway (The center is Managing Director of Sunway, Mr. Ho)

サンウェイグループ経営陣（中央がマネージングディレクターのホー氏）

IN A NUTSHELL Private Equity International (PEI) Report on Global Capital 8

by Faza Sakinah & Hazrul Izwan

The number of private equity (PE) funds globally has declined by 49.8% from US$422 billion in 2008 to US$212 billion in 2009 due to reduction in the number of capital raised. The market seems unpredictable and upheaval from 2009 to 2011 which is caused by economic slowdown, overheated economy in China, sovereign debt crisis in Europe and debt ceiling debate in US are the key factors which continuously make global fundraising activities more challenging.

North America remains the largest region for capital raising by securing 36.2% of total capital raised, followed by Asia-Pacific region (14.7%) and Western Europe (12.2%) (Figure 4). According to “Asia Pacific Private Equity Review” survey results released in March 2012 by Private Equity International, growth/expansion capital, venture capital and buyout funds represent the top three strategies

adopted by general partners (GPs) targeting Asia in 2011. Out of these three strategies, growth/expansion capital funds outperformed across all type of fundraising strategies with an aggregate amount of US$12 billion.

The increasing PE investments in Asia (particularly Southeast Asia and China) has been caused by issues in the US and Europe such as the regulatory pressures and financial instability which give advantages towards the Asian countries.

The top two countries that are GP favorites are China and India with 57% of capital raised and 12% respectively. As for India, it was from US$2 billion to US$3 billion from 2009 to 2011. Although China is dominating the private equity market with an aggregate fund of US$16 billion, other Asian countries that are also growing are Indonesia, Japan, Malaysia, Mongolia and South Korea.

Malaysia is way behind as compared to China and India. However, the past increase in investment is making Malaysia a hotspot to invest in given the attractiveness of its location within Asia’s geographical market. Malaysia was selected in a group of seven out of eight countries highlighted by respondents for the new area of opportunities in the SEA region together with Vietnam, Laos, Philippines, Cambodia, Thailand and Singapore (Figure 5).

The survey report also highlighted that a sector which is favored by PE firms in the SEA countries include the consumer and retail sector, energy sector, and commodities sector to name a few. Also with the young population and the growing middle class and higher consumer spending, this makes Malaysia along with other SEA countries more appealing and attractive. This is an opportunity to attract more private equity firms to invest in Malaysia.

Figure 5: Limited Partners’ (LP) current and future country-specific strategies

Figure 4: Regional Breakdown of 2011 global capital raisedGLOBAL

FUNDRAISING

OVERVIEWPEI Surveys shows that Malaysia was selected as one of new area of opportunities for investors globally along with other SEA countries such as Vietnam, Laos and Philippines

PRIVATE EQUITY

China is dominating the private equity

market with an aggregate fund of

US$16 billion, other Asian countries that are also growing are

Indonesia, Japan, Malaysia, Mongolia

and South Korea

Aust

ralia

Cam

bodi

a

Chin

a

Hon

g K

ong

Indi

a

Indo

nesi

a

Japa

n

Laos

Mal

aysi

a

Phili

ppin

es

Sing

apor

e

S. K

orea

Taiw

an

Thai

land

Vie

tnam

I hav

e no

t

30

25

20

15

10

5

0

Source: IPE Surveys

Legend: Current investment/s

Future investment/s

%

inve

sted

in

APAC

North America

36.2%

Western Europe

12.2%

Source: IPE Research Centre

Funds targeting multiple regions

29.9%

Latin America

5.3%

Asia Pacific

14.7%

Middle East/ Africa

1.1%

Central & Eastern Europe

0.6%

US$186 billion

“

GRAPHICALLY SPEAKING Supply of Housing in Malaysia 9

SELANGOR

Unit launchedLegend:

KUALA LUMPUR & PUTRAJAYA

PENANG

JOHOR

UNITS LAUNCHED SHOWS

LOWER UNSOLD UNITS OF PROPERTY

IN SELECTED STATES, 2008 - 2011

Unsold units

16

14

12

10

8

6

4

2

0

Units‘000

2008

2009

2010

2011

35

30

25

20

15

10

5

0

Units‘000

2008

2009

2010

2011

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0

Units‘000

2008

2009

2010

2011

35

30

25

20

15

10

5

0

Units‘000

2008

2009

2010

2011

MALAYSIA

140

120

100

80

60

40

20

0

Units‘000

2008

2009

2010

2011

Source: NAPIC

DECLINING SUPPLY IN ALL STATES,

AND SHOWS SUSTAINED DEMAND

Malaysia Property Incorporated (MPI) receives foreign investor queries on an ongoing basis. For any parties interested to pursue these investment requirements, please contact the MPI team at research@malaysiapropertyinc.com

CROSS-BORDER QUERIES 10

Request Client Requirement Location

2Q 2012

Landbank Hiroshima, Japan Development land less than RM 15 million for

high-end condomium project

Penang, Ipoh, Kuala Lumpur and Selangor

1Q 2012

Landbank

Landbank,Development rights

Guangzhou, China

Dhaka, Bangladesh

10 - 20 acres of land for furniture mall

5 - 7 acres of land for development

Greater KL

Greater KL (Southern part)

4Q 2011

Factory cum distributor office

Dubai, UAE 10,000 square feet area

Klang Valley

3Q 2011

Landbank,Development rights

Landbank,Development JV

Singapore

Singapore

10 acres and above of freehold landto built a logistic park

Mixed development with medical component, medical resort

e.g medical themed service apartments, retirement village

Klang Valley(Shah Alam, Bukit Raja)

Klang Valley, Johor, Penang

LOOKING FOR

INVESTMENT

ABOUT USMalaysia Property Incorporated is a Government initiative set up under the Economic Planning Unit to drive investments in real estate into Malaysia. As the first port-of-call for real estate investment queries, Malaysia Property Inc. connects interested parties through an extensive network of government agencies, private sector companies, real estate firms, business councils and real estate-related associations. MPI has two core objectives; to create international awareness and to establish connections between foreign interests and Malaysian real estate industry players, ultimately contributing to real estate investments into the country.

For further information and up-to-date tracking of Malaysian real estate data, visit:www.malaysiapropertyinc.com

For further enquiry, write to:info@malaysiapropertyinc.com

Disclamer: This report contains information that is publicly-available and has been relied on by Malaysia Property Incorporated on the basis that it is accurate and complete. MPI is not liable if the case proves to be otherwise. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and the same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed.