KUALA LUMPUR, 13 March 2013 - Amid a land-claim dispute with an armed group from the Philippines in Sabah, Malaysia remains a desirable investment destination buoyed by the growth it is showing.
“The property market in Malaysia is largely driven by domestic demand and probably less than 10 percent of transactions are from overseas investors to date…That being the case, the recent incident will not broadly impact the property market,” noted Gerard Kho, Country Manager of PropertyGuru Malaysia.
However, the rift may also create a short-term impact in terms of desirability and credibility for buyers, he said in a report by Bernama.
“In the longer term, it would not have much impact. Property investment in general is a decision for the long term.”
“The Malaysian domestic growth potential, and the fact that the country is at a growth phase of economic development, makes it still a very desirable location for investors,” he assured.
Meanwhile, Dr Shane Oliver, Head of Investment Strategy and Chief Economist of AMP Capital, also reiterated that the intrusion in Lahad Datu would not deter investor interest for both Malaysia and the Philippines, with authorities being on top of the matter.
According to reports, Defence Minister Datuk Seri Dr Ahmad Zahid Hamidi said the Malaysian and Philippine governments will go hand in hand to resolve the conflict.