KUALA LUMPUR, Feb 29 — The massive 70 per cent decline in approved investments in Malaysia’s real estate sector last year is cause for worry, International Trade and Industries Minister Datuk Seri Ong Ka Chuan said.
Ong, who was speaking after the Malaysian Investment Development Authority (MIDA) released its latest investment figures this afternoon, pointed out that real estate is tied to 200 other components, which meant the decline could adversely affect other industries.
“There could be other factors causing this. But this is something that warrants further analysis,” he told reporters.
“It is a concern, because the drop is substantial,” he said.
According to MIDA’s numbers, approved investments in real estate stood at only RM26.9 billion last year, a significant 70 per cent drop from the RM88.6 billion recorded in the corresponding period in 2014.
Among others, rising cost of living and the economic slowdown are said to be among the contributing factors.
The plunge also weighed on Malaysia’s overall approved investments for 2015, which was recorded at RM186.7 billion, 21 per cent lower than the RM235.9 billion recorded the previous year.
According to MIDA, however, the RM186.7 billion in total approved investments was still above the targeted annual average of RM148 billion.
