Construction & Real Estate

The construction sector has experienced consistently strong growth in the past four years as the industry expanded by 11.4%, 4.7%, 18.1% and 10.1% each year from 2010 to 2013. Sector growth has surpassed GDP growth in recent years, spearheaded by the government’s Economic Transformation Programme (ETP) and public-private partnership (PPP) projects. Counterbalancing the interest shown in the more profitable high-end properties, the government has also been mindful of developing more affordable options through various government programmes. Mixed-use mega projects in Kuala Lumpur and Iskandar are expected to produce stable demand for construction services. Sustained economic expansion, a youthful and growing population and an investor-friendly market amenable to foreign and domestic investments have continued to drive Malaysia’s real estate market forward in 2013. The government is seeking to rein in residential property growth to limit broader economic damage in the event of a market downturn as well as to keep home prices affordable for the less affluent. Although investment in the residential sector is expected to remain firm within the short term, particularly with regards to mid-range projects, the market is likely to continue its correction course throughout 2014. This chapter contains interviews with Michael Yam, President, Real Estate and Housing Developers’ Association; and Mohamad Salim, Group Managing Director, MRCB.