70% drop in real estate investments a concern, Putrajaya says

Approved investments in Malaysia’s real estate sector plummeted by 70 percent to RM26.9 billion in 2015 from RM88.6 billion in the previous year, according to the Malaysian Investment Development Authority (MIDA).

“It is a concern because the drop is substantial,” said International Trade and Industries Minister Datuk Seri Ong Ka Chuan.

More importantly, the massive decline could have a domino effect as the property sector is connected to 200 other industries, he explained.

Problems currently affecting Malaysia’s real estate sector include the country’s sluggish economy amidst a slump in commodity prices and the rising cost of living.

“There could be other factors causing this. But this is something that warrants further analysis,” added Seri Ong.

As a result of the massive drop in property investments, total approved investments in Malaysia fell by 21 percent to RM186.7 billion last year from RM235.9 billion in 2014.

Nevertheless, MIDA said that the figure for 2015 still surpassed the targeted annual average of RM148 billion.