2013-01-31 09:01:44 - Recently published research from Business Monitor International, "Malaysia Real Estate Report Q1 2013", is now available at Fast Market Research

The Malaysia Real Estate report examines the commercial office, retail, industrial and construction segments throughout the country in the context of strong 2012 data. With a focus on the principal cities of Kuala Lumpur, Johor Bahru and Kota Kinabalu, the report covers the rental market performance in terms of rates and yields over the past 18 months, and examines how best to maximise returns in the commercial real estate market while minimising investment risk.

Our latest round of in-country interviews (conducted in July 2012) suggest that the market is not yet saturated, and investment may continue to increase as players look to more stable markets than the US and eurozone. Nevertheless, our in-country sources have reported increasing fears of oversupply in

the market and a small portion of our rental indicators noted year-on-year contraction over the first six months of the year.


Full Report Details at
- www.fastmr.com/prod/529435_malaysia_real_estate_report_q1_2013.a ..


A big driver for growth in construction is the government's Economic Transformation Programme (ETP), launched in December 2010. The government identified 131 projects with a total investment value of MYR794.5bn (US$215mn). At the end of 2011, 46 projects with an investment value of MYR95bn (US$31mn) had been confirmed. MYR36.6bn (US$12mn) of this is for investment in the Mass Rapid Transport (MRT) programme and MYR28bn (US$9mn), or 30%, is for investment in the oil, gas and energy sector. Investment in tourism includes the development of the MYR600mn (US$196mn) Marina Island Pangkor 2nd International Resort and Entertainment Island, which includes waterfront property development. In April 2012 it was reported that the ETP had exceeded its 2011 target, achieving 23% of its Key Performance Indicators (KPIs).

Key Points

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Although we had expected construction activity in Malaysia to recover in 2012, the sector's stellar performance in Q212 has exceeded our expectations, prompting us to revise up our fullyear real growth forecast for 2012 to 11.5% (from a previous forecast of 6.2%). Looking ahead, we remain relatively bullish about the Malaysian construction sector over the coming quarters, but believe that it is unlikely construction activity will grow at the blistering pace seen in H112. This outlook is because headwinds from a weakening global economy are already dampening demand for residential and non-residential buildings.
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We continue to expect the consensus estimate on Malaysia's real GDP growth for this year, which presently stands at 4.1%, to move closer to our core view for a more subdued growth rate of 3.8%. The disappointing reading of China's purchasing managers' index has reinforced our core view for a hard landing in the Chinese economy, which in turn compels us to maintain a bearish outlook on Malaysian exports.
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Despite the Pakatan Rakyat coalition's growing popularity in recent years, partly due to its multiracial and pro-democracy platform, we believe that this will nonetheless be insufficient to unseat the ruling Barisan Nasional (BN) at the upcoming general election. We expect the announcement of a generous election budget for 2013 by Prime Minister Najib Razak will help to boost voter support for the BN coalition, and should be sufficient to give the BN a marginal edge at the next general election.

Partial Table of Contents:

SWOT Analysis
- Malaysia Real Estate/Construction SWOT
- Malaysia Political SWOT
- Malaysia Economic SWOT
- Malaysia Business Environment SWOT
Market Overview
Market Analysis - Office
- Supply And Demand
- Rents And Yields
- Table: Historic Rents - 2011-2012 (MYR per m2/month)
- Table: Net Yield, 2011-2013 (%)
- Table: Terms Of Rental Contract/Lease - Mid-2012
- Industry Forecast Scenario
- Table: Forecast Rents (MYR per m2/month)
- Table: Forecast Net Yield, 2010-2017 (%)
Market Analysis - Retail
- Supply And Demand
- Rents And Yields
- Table: Historic Rents - 2011-2012 (MYR per m2/month)
- Table: Net Yield, 2011-2013 (%)
- Table: Terms Of Rental Contract/Lease - Mid-2012
- Industry Forecast Scenario
- Table: Forecast Rents (MYR per m2/month)
- Table: Forecast Net Yield, 2010-2017 (%)
- Table: Malaysia Retail Sales Indicators, 2009-2016
Market Analysis - Industrial
- Rents And Yields
- Table: Historic Rents - 2011-2012 (MYR per m2/month)
- Table: Net Yield, 2011-2013 (%)
- Table: Terms Of Rental Contract/Lease - Mid-2012
- Industry Forecast Scenario
- Table: Forecast Rents (MYR per m2/month)
- Table: Forecast Net Yield, 2010-2017 (%)
Forecast Scenarios
- Infrastructure Report
- Table: Malaysia Construction And Infrastructure Industry Data, 2009-2016
- Table: Malaysia Construction And Infrastructure Long-Term Forecasts, 2014-2021
- Construction And Infrastructure Outlook
- Macroeconomic Outlook
- Table: Malaysia - Economic Activity, 2011-2016
Real Estate Risk Reward Ratings
- Real Estate/Construction Risk/Reward Ratings
- Table: Asia Pacific Real Estate Risk/Reward Ratings
- Malaysia's Business Environment
- Table: BMI Business And Operation Risk Ratings
- Institutions
- Table: BMI Legal Framework Rating
- Infrastructure
- Table: Labour Force Quality
- Market Orientation
- Table: Asia, Annual FDI Inflows
- Table: Top Export Destinations (US$mn)
- Table: Trade And Investment Ratings
- Operational Risk
Competitive Landscape
Company Profiles
- AZRB
- IJM Corporation Berhad
- MRCB
- WCT Berhad
Demographic Data
- Table: Malaysia's Population By Age Group, 1990-2020 ('000)

Full Table of Contents is available at:
-- www.fastmr.com/catalog/product.aspx?productid=529435&dt=t

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