/// Contributor
The Rise of the High-Rise
Housing offer and current/estimate demand
W
Dr. Daniele
Gambero
CEO and co-founder of REI
Group of Companies
Dr. Daniele Gambero is the CEO of
strategic marketing consultancy firm
REI Group of Companies. He holds
an MBA from L. Bocconi University in
Milan-Italy, Master in Communication
from the University of Michigan Ann
Arbour MI – USA, Ph.D in Marketing
Strategies and Communication from
L. Bocconi University and University of
Michigan.
With his vast experience in strategic
marketing consultancies, investment
studies, researches, property market
reports and business valuation globally,
the REI Group of Companies helps
Malaysian developers with business
solutions relating to design, concept,
strategic marketing and pricing,
advertising and marketing and sale
procedures for their residential,
commercial and industrial projects
since 2007.
hen I give presentations on the Malaysian Property Market I always talk first about the main
driver that justifies the balancing between offer and demand, the economic current performance
and outlook of the Country. This is a concept that has to be very clear for both developers and
purchasers. Real Estate is not an economic driver or, we can also say, it is not the cause of the economic
growth of a Country. It comes in as a logic and natural consequence of the economic development of
the Nation. Economic drivers are manufacturing, services (such as financial services, high quality health
services supply – i.e. properly developed third age healthcare system and so on), education, tourism and
O&G. Malaysia has been kept on performing pretty well in the past decade and the outlook for the next
several years remains positive as all the indexes are showing ample room for improvement. By looking at a
steady growth of the economy and comparing some of the indexes with other fully developed economies
in the world Malaysia should be proud of the achievements and look at the future in an optimistic way as
there is still plenty of room for improvement (Chart 1).
USA
EU
UK
JAPAN
AUSTRALIA
MALAYSIA
2.52%
0.12%
0.65%
0.65%
0.65%
4.70%
Gov. Depth as % of G DP
101.60%
90.60%
91.10%
226.1%
20.7%
53.10%
Gov. Deficit as % of GDP
-4.10%
-3.7%
-7.40%
-9.6%
-3.00%
-4.50%
Balance of Current Acc in USD Billion
-360.7
-34.5
-93.6
56.6
-44.9%
16.6
GDP GROWTH
Inflation
1.5%
1.5%
2.7%
0.2%
2.4%
3.2%
Unemployement
7.3%
10.8%
7.7%
4.1%
5.7%
How this applies to Iskandar Malaysia is easy to say. In the last 8 years IRDA has been able to attract more
than RM133 billions of committed investment within the 9 economic cluster defined by the 2005-2025
Comprehensive Development Plan. As we speak more than 55% of this has been already realized (Charts
2 and 3).
Good to be underlined is that 65% of the
amount above has been generated locally
with a mere 35% coming from oversea.
Looking at a possible 2020 outlook we can
find very positive signals coming from our
neighbor Singapore. The recent state visit
of the Singaporean PM and his speech in
Putrajaya are confirming the very high
interest that Singapore has into Iskandar
Malaysia not from a “property-speculation”
point of view but more as an “industrial and
manufacturing facilities supplier” with the big
plus of attractively valued skilled labor cost.
The results of a recently conducted “public
opinion survey” are highlighting how little the
Iskandarians are aware of the IRDA’s growth
achievements.
9 ECONOMIC CLUSTERS
Food and Agro
Processing
Petro &
Oleo - chemicals
Electrical &
Electronics
Education
Services
Logistics
Tourism
Financial Services
Creative Industries
Health Services
INVESTMENT UPDATE 2006 - OKTOBER 2013
TM
ISKANDAR
REGIONAL
DEVELOPMEN
AUTHORIT
Committed and Realised In
vestment
Year-On-Year
RM’Bil
140.00
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