Malaysia

The property sector in Malaysia has been attracting plenty of attention from foreign investors and could draw in even more. But after a period of strong price growth, new regulations on lending and slower economic expansion may cool the market, leading developers and the government to target projects and investment incentives more carefully.

An overhaul of Malaysia’s Islamic finance regulations is expected to increase take-up of sharia-compliant insurance (takaful) products, although the new rules could encourage smaller operators to join forces with more established rivals.

The central bank in Malaysia is keeping an eye on macroeconomic stability at a time when a cooling external environment is putting pressure on growth. While international factors are starting to affect overall economic performance, domestic demand remains relatively robust, supported by consumer spending and public investments.

Automotive sales in Malaysia slipped down a gear in the second quarter, with both April and May showing a deceleration in the figures, though experts believe activity in the industry will pick up in the latter half of the year after the government unveils a new policy aimed at reducing vehicle price tags.

The budget airline market in Malaysia is continuing to evolve. A new entrant, Malindo Air, is challenging the dominant player, AirAsia, as the latter plans an initial public offering (IPO) for its long-haul division and is facing delays at Kuala Lumpur’s new low-cost airport.

Return of confidence after Malaysia’s general election has seen a surge in companies declaring their intention to go public, with more than $2bn worth of initial public offerings (IPOs) launched or mooted for the weeks following the poll.