KUALA LUMPUR, April 5 — Juwai IQI expects an increase in Singapore-Malaysia cross-border property investment of at least 40 percent in 2022, compared to 2021 levels.
In a statement, its chief executive officer Kashif Ansari said this investment should continue to climb in 2023, probably reaching pre-pandemic levels that year.
“In 2022, we expect Malaysian expats living in Singapore and Singaporeans to increase their property acquisitions in Malaysia, especially in Johor and secondarily in Kuala Lumpur,” he said.
He noted that the border’s re-opening will lead to a complete resumption of pre-pandemic trade and travel between the nations and once again make it possible for Malaysians to seek opportunities in Singapore and for Singaporeans to seek opportunities in Malaysia as well.
Kashif said given the high property prices in Singapore, this will also drive Singaporeans to seek alternatives in Malaysia.
“Overall Singapore private home prices rose by 10.6 percent in 2021.
“Singapore hasn’t seen such fast price growth since 2010. Meanwhile, the number of transactions increased by 68 percent compared to 2020,” said Kashif.
Besides, the Singapore dollar is close to a five-year high against the ringgit, trading at RM3.10 to S$1, higher than it was at the start of the pandemic in February 2020, when the Singapore dollar fell to RM2.98.
He said this represents a four to five percent increase in purchasing power for a buyer holding Singapore dollars.
At the same time, Malaysia will also gain other benefits in terms of the tourism industry, education and trade.
Singapore is Malaysia’s largest source of foreign direct investment. In 2020, Singapore accounted for 22 percent of Malaysia’s total foreign direct investment (FDI) stock.
“Singapore also benefits from and received more Malaysian direct investment than any other country.
“In 2020, Malaysian investment in Singapore reached RM110.38 billion, or about 21 percent of the total,” he added.
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