South East Asia

"South East Asia is a tale of two cities; increasingly affordable accessibility and even more affordable property prices. An investors dream!"

Malaysia is a very pleasant and hassle-free place to visit. Set at the heart of Asia (“Malaysia Truly Asia” is the current Tourist Board slogan) the federation of 13 states is a true melting pot of races and religions and is tolerant, warm and welcoming. The vast South China Sea splits Malaysia into two - ‘Peninsular’ or ‘West Malaysia’ and ‘Malaysian Borneo’ or ‘East Malaysia’ with the latter being home to Mount Kinabalu, one of the highest peaks in South East Asia at 4,095 metres above sea level. Malaysia also boasts fine beaches, spectacular cave systems and the oldest rainforest in the world, home to the world’s tallest tropical trees.

One of Malaysia's key attractions is its extreme contrasts. Although very east on the Atlas, it’s very west in its outlook. The cityscape of capital Kuala Lumpur is pricked with towering skyscrapers including the iconic Petronas Twin Towers (world’s tallest 1998 – 2004) and the Formula 1 circuit at nearby Sepang is regarded as the industry benchmark in terms of design and facilities. However, high-tech swiftly descends into low-tech within a matter of kilometres and steel and glass modernity is replaced by wooden houses teetering on stilts, sweeping white beaches and tropical islands languishing in the stunning, turquoise sea.

The state of Negeri Sembilan, just 50km south of Kuala Lumpur International Airport via the North South Expressway (highway) was one of the earliest tourist pullers for Malaysia and the current focus of attention for GEM Estates. Negeri Sembilan provides the nearest accessible beaches for Kuala Lumpun city slickers in the shape of the resort of Port Dickson. With 1.5 million people living in the capital, Port Dickson is thronging at the weekends with those eager to escape the bustle and stress of city living. Port Dickson is fringed with 18km of white sand beaches protected by palms and coconut trees and a real treasure trove of marine and coral life sits just offshore in the Straits of Malacca. Aside from the beautiful beaches, other attractions in the Port Dickson area include three golf courses, several historical sites and a thriving second home market.

Not only a favourite with Kuala Lumpuns, Port Dickson is also enjoying a rapid upsurge in interest from Korean and Chinese tourists and for this reason GEM Estates tips the resort for genuine investment success.

WHY INVEST IN SOUTH EAST ASIA

CLIMATE ****

Malaysia sits immediately north of the Equator and therefore has a tropical climate. Temperatures average 30ºC but certainly sit between 21 and 32ºC all year round. The dramatic monsoons between November and February deluge the eastern peninsular coastline and Malaysian Borneo yet tend to avoid the western mainland. The west coast, where Port Dickson is sited, experiences the fewest intense but brief thunderstorms and is at its wettest in April and May. Fortunately Malaysia avoids natural hazards such as earthquakes, volcanoes or tornados. Four stars as humidity can be a bother in the Tropics.

ACCESSABILITY ****

Malaysia Airlines fly direct from London to Kuala Lumpur in 12 hours whilst carriers such as Emirates, Qatar Airways and Cathay Pacific do the same route with one stop-off along the way. Kuala Lumpur is eight hours ahead of GMT. Low cost airline, Air Asia X, launches in September 2007 with routes planned from China and Australia into Kuala Lumpur although it is widely expected that destinations in the UK and Europe will swiftly follow. The aviation tycoon director, Tony Fernandes, aims for Air Asia X “to be the world's most profitable point-to-point long haul low cost carrier” and it is rumoured that the Malaysian Government has given the airline rights to 36 international destinations. Four stars, prices may be high now, but watch this space.

ECONOMY *****

In the 1980s and 1990s Malaysia enjoyed significant economic growth catapulting it from a nation reliant on agriculture to a multi-sector economy strong in industry and manufacturing, especially computers and consumer electronics, and of course tourism. Those decades saw consistent economic growth of more than 7% GDP coupled with low inflation. These were also the years of mega projects such as the 88-storey Petronas Twin Towers, the Sepang F1 circuit and Kuala Lumpur International Airport (KLIA) inaugurated in 1998, part of the Multimedia Super Corridor. Malaysia is now the world’s primary exporter of natural rubber and palm oil, whilst timber, cocoa, pineapple and tobacco are also good foreign exchange earners. The Malaysian economy is bolstered by modest oil and natural gas reserves and at current production rates Malaysia will be able to produce oil for up to 18 years and gas for 35 years. Current GDP growth is a more than satisfactory 5% - 6%. Five stars.

TOURISM *****

According to global market research firm, Euromonitor, tourist arrivals in Malaysia rose by more than 160% between 2000 and 2005 - an astonishing achievement for tourism on today’s volatile world stage. They also predict that if market conditions remain positive, incoming tourist receipts are expected to continue to grow by 8 to 10% annually. 2007 is a key year for tourism in Malaysia as it is officially Visit Malaysia Year (VMY). A massive Government-steered tourist drive is underway, hoping to see tourist arrivals leap from 15 million in 2005 to 20 million in 2007. Malaysians have had their ‘hospitality skills upgraded’ so all who visit have an experience that they wish to repeat. VMY is extra special as it coincides with celebrating 50 years of Nationhood – British colonial rule officially ended in August 1957. Five stars as Malaysia appeals to numerous nations from Singapore to Japan and India to the UK.

PROPERTY MARKET ****

Residential property prices in Malaysia have reportedly risen by between 15 and 30% over the past five years and thanks to a robust tourism industry holiday rentals are big business, particularly in and around Port Dickson. Malaysia has an extremely low cost of living and labour costs are low making property ownership very accessible. Maintenance fees are calculated at a meager three to four pence per square foot per month. Government legislation is actively encouraging foreign property investment through a number of tax incentives and the relaxation of laws governing real estate purchase by foreigners. As a former British Colony the property laws are very similar to those of the UK and readily understood. Capital Gains Tax in Malaysia is 30% if selling within two years, 20% in year three, 15% in year four, 5% in year five and 0% in year six onwards. Four stars.