Malaysia hard selling property to Indians

Encouraged by the number of Indians who have bought property in and around Kuala Lumpur, a Malaysian delegation is in the city to attract high net worth individuals to make Malaysia their second home.

Malaysia My Second Home campaign organized by Tourism Malaysia and Malaysia Property Incorporated (MPI) had been to Delhi, Mumbai and Ludhiana before arriving in Chennai on Wednesday, September 19.

“We see a lot of potential investors in smaller cities of India where a culture of savings is nurtured. Towns like Coimbatore, Bangalore and Hyderabad will be the target of our next campaign,” said Abraham Jacob, vice president, Investment Promotions, MPI.

Malaysia hopes to get a good number of people to invest in land, premium apartments and villas in Kuala Lumpur, Redang and other places in the country. High net worth individuals were given a presentation on the type of properties available, main investment areas, prices and potential returns. MPI will also help investors on the formalities and laws governing purchase of land.

“Around 600 Indians have invested in Malaysia after we launched the programme in 2003. A little more than half of these were for investment purposes while about one third were for individual use,” he added.

“We are quite comfortable in Tamil Nadu because of the cultural ties. There are over 2.1 million people of Indian origin in Malaysia and a good number of them have their roots in Tamil Nadu,” said Jacob.

Foreigners comprise 10% of investors in real estate, so Malaysia is planning to market the country as an attractive destination for investments.

Most of the properties that are marketed are located along a new line of the mass rapid transport that is being developed in Kuala Lumpur. Those 50 years of age and below should have liquid assets of 5,00,000 Ringgit (nearly Rs.80 lakh) and 10,000 Ringgit (nearly Rs.1.6 lakh) as monthly income to buy property in Malaysia. Those above 50 years should show liquid assets of 3,50,000 Ringgit (Rs.55 lakh) to qualify as buyers of real estate.

The campaign is being carried out because India is on a fast growth track. “When Tourism Malaysia opened its office in India in 2000 only 45,000 Indians visited Malaysia. In 2010, nearly 6.90 lakh tourists visited Malaysia,” said Amirul Ariffin Md Nasir, Director, Tourism Malaysia, New Delhi.