KUALA LUMPUR – The number of cross-border property investments between Malaysia and Singapore is anticipated to rise at least 40% this year from 2021.
Juwai IQI chief executive officer Kashif Ansari said in a statement that the number of property investments between both countries is expected to continue rising with a possibility of reaching pre-pandemic levels in 2023.
“In 2022, we foresee Malaysian expats in Singapore and Singaporeans to boost their property investments in Malaysia, particularly in Johor and, to a smaller degree, Kuala Lumpur,” he said.
He added that reopening the border will lead towards the full restoration of pre-pandemic trade and travel between the nations. This would allow for Malaysians to explore prospects in Singapore and Singaporeans to seek opportunities in Malaysia.
Kashif noted that given Singapore’s high housing costs, this will also encourage Singaporeans to look for alternatives in Malaysia.
“In 2021, the average price of a private home in Singapore had grown by 10.6%. Since 2010, Singapore has not experienced such rapid price growth.” Meanwhile, transaction volume climbed by 68% from 2020 to 2021 “Kashif stated.
Additionally, the Singapore dollar is approaching a five-year high versus the ringgit, trading at RM3.10 to S$1, up from RM2.98 at the start of the pandemic in February 2020.
This translates into a 4% to 5% gain in purchasing power for a buyer holding Singapore dollars, he explained.
At the same, Malaysia will profit from extra benefits in the tourism, education, and trade industries.
Singapore is the greatest source of foreign direct investment for Malaysia. Singapore had previously contributed 22% of Malaysia’s total foreign direct investment (FOi) stock in 2020.
“Singapore also benefits from and has received the most amount of Malaysian direct investment compared to any country.
“In 2020, Malaysian investment in Singapore amounted to RM110.38 billion, or around 21% of overall investment,” he added.
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