Despite the uncertain global financial markets, Malaysian real estate remain an attractive investment opportunity for foreign players and apart from the Middle East, the property sector is attracting countries such as South Korea, China and Japan.

Housing and Local Government Minister Datuk Seri Ong Ka Chuan said: “Malaysia is becoming more attractive to foreign investors.”

He noted that the global rise in fuel prices had affected the local real estate industry, which could trigger a slowdown in the overall economy, and that existing projects should go on while new projects be initiated to counter the rippling effect on the economy.

While the rising cost of construction poses an immediate challenge for the industry, Ong remains optimistic that the upcoming budget would be “people-centric” and hopes that the government will provide incentives to the housing and building materials industry.

As for the Real Estate and Housing Developers Association’s (Rehda) proposed review on the 30% bumiputra quota, Ong believes that there should be some flexibility; perhaps an adjustment on the quota for areas with less bumiputra population residents.