PROPENOMICS Of The Malaysian Scenario - Dangerous Misperception of Economic Principles, Current and Future Trends in Property Investment in Malaysia

Transcription

1 Malaysian Property Market PROPENOMICS Of The Malaysian Scenario - Dangerous Misperception of Economic Principles, Current and Future Trends in Property Investment in Malaysia Presentation by Dr. Daniele Gambero Co e ti g the dots etwee e o o y, de ographi tre ds a d ew housi g o epts

2 DISCLAIMER AND COPYWRITE To the best of our knowledge, all information included here falls under the fair use or public domain guidelines of copyright laws. We strive for accuracy but cannot be held responsible for any errors in information featured in the slides or incorrect attributions. REI Group of Companies uses reasonable efforts to include accurate and up to date information however REI Group of Companies makes no warranties or representations as to its accuracy. REI Group of Companies assumes no liability or responsibility for any errors or omissions in the content. The quotes, articles, news and views are not necessarily representative of the views of REI Group of Companies and its directors and Management. This Presentation has been shared for personal use and knowledge ONLY. Any inappropriate use will be prosecuted according to the law and any total or partial use of this presentation for public viewing or publishing must be pre-authorized in writing by REI Group of Companies.

3 What e do CONSULTANCY - Strategic Marketing Consultancies: design, concept, pricing, branding - Property Market Surveys: defining the best product for each specific area - Property Market Reporting: give developers an independent platform to take strategic decision on future development - Property Market Analysis: research and definition of new development products based on existing market situation - Branding: adding value by endorsement of project, branding of new development areas, defining and creating catalyzer for future development - Creative: converting ideas in fact and having fun

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6 Organizations that have invited Dr. Daniele Gambero as speaker to their events are: Rehda KL, Rehda JB, Rehda Malacca and Rehda Penang Sheda Kuching Asian Strategic Leadership Institute (ASLI) FIABCI Malaysian Chapter iproperty, PropertyGuru Malaysia and Singapore and EG Expos Malaysian Property Incorporated University Malaya KL Wealth Mastery Academy, Comfori and Starfish Special Property Market Outlook presentation to the Bod of: Encorp Bhd Hatten Group UEM Sunrise

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8 Organizations that have invited Dr. Daniele Gambero as speaker to their events are: Rehda KL, Rehda JB, Rehda Malacca and Rehda Penang Sheda Kuching Asian Strategic Leadership Institute (ASLI) FIABCI Malaysian Chapter iproperty, PropertyGuru Malaysia and Singapore and EG Expos Malaysian Property Incorporated University Malaya KL Wealth Mastery Academy, Comfori and Starfish Special Property Market Outlook presentation to the Bod of: Encorp Bhd Hatten Group UEM Sunrise

9 Regular columnist for several newspapers and specialized magazine such as: The Star Malaysian Reserve Malay Mail PropertyTimes The Sun The Edge Real Estate Malaysia Property Hunter Property Insight Property King

10 Regular columnist for several newspapers and specialized magazine such as: The Star Malaysian Reserve Malay Mail PropertyTimes The Sun The Edge Real Estate Malaysia Property Hunter Property Insight Property King

11 Agenda Malaysian Property Market: get it right! Malaysian Economic Performance: room for improvement Malaysian Economy: Fact File Malaysian Wealth: meaning of Affordable Malaysian Real Estate: Strategically Sustainable Malaysian Real Estate: what and where

12 MALAYSIAN PROPERTY MARKET Setting the rules for sustainability HEALTHY GROWTH OF A REGULATED AND PROFITABLE PROPERTY MARKET DEFINITION AND DEVELOPMENT OF ECONOMIC CULSTERS DEFINITION AND DEVELOPMENT OF PROPER INFRASTRUCTURE SOCIO/ECONOMIC EQUITY OR FAIR WEALTH DISTRIBUTION AND INSTITUTIONAL FRAMEWORK & REGULATORY AUTHORITY ECONOMIC GROWTH PLANNING AND EXECUTION STABLE AND DEMOCRATIC POLITICAL ENVIRONMENT

13 MALAYSIAN PROPERTY MARKET Setting the rules for sustainability PROPERTY IS NOT AN ECONOMIC DRIVER BUT THE CONSEQUENCE OF PROPERLY PLANNED ECONOMIC GROWTH PROPERTY + ECONOMY =

14 MALAYSIAN PROPERTY MARKET Setting the rules for sustainability PROPERTY + ECONOMY =

15 Malaysian Economic Performance: FDI as driver for growth

16 Malaysian Economic Performance: FDI as driver for growth

17 Malaysian Economic Performance: FDI as driver for growth

18 Malaysian Economic Performance: FDI as driver for growth

19 Malaysian Economic Performance: FDI as driver for growth

20 Malaysian Economic Performance: FDI as driver for growth FDI Flow since year 2000

21 Malaysian Economic Performance: FDI as driver for growth TOTAL 2013 ACHIEVEMENTS

22 GLOBAL & MALAYSIAN ECONOMY - FACT FILE

23 GLOBAL & MALAYSIAN ECONOMY - FACT FILE Country Ease of doing business Starting a business Dealing with construction permits Registering a property Trading across borders Enforcing contracts Result over 3 years Overall Ranking Rank 2013 Rank SINGAPORE NEW ZEALAND HONG KONG US UK THAILAND JAPAN S. KOREA MALAYSIA

24 GLOBAL & MALAYSIAN ECONOMY - FACT FILE INDEX USA EU UK JAPAN AUSTRALIA MALAYSIA GDP Growth 2.52% 0.12% 0.65% 0.65% 0.65% 4.70% Gov. Debt as % of GDP % 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 Inflation 1.5% 1.5% 2.7% 0.2% 2.4% 3.2% Unemployment 7.3% 10.8% 7.7% 4.1% 5.7% 3%

25 SEA REGION & MALAYSIAN ECONOMY - FACT FILE INDEX VIETNAM INDONESIA THAILAND MALAYSIA AUSTRALIA SINGAPORE GDP Growth 5.54% 5.72% 0.60% 4.70% 0.65% 5.50% Gov. Debt as % of GDP 37.30% 23.6% 44.30% 53.10% 20.7% 97.90% Gov. Deficit as % of GDP -6.90% -1.77% -4.10% -4.50% -3.00% 1.3% Balance of Current Acc in USD Billion Inflation 4.65% 7.75% 1.22% 3.2% 2.4% 2.25% Unemployment 2.22% 6.25% 0.62% 3% 5.7% 1.8% Population (Million) Global competitivnes index (WEF ) Stage of development (WEF ) Stage 1 Factor Driven Stage 2 Efficiency Driven Stage 2 Efficiency Driven Stage 2 to 3 Efficiency to Innovation Stage 3 Innovation Driven Stage 3 Innovation Driven

26 SEA REGION & MALAYSIAN ECONOMY - FACT FILE INDEX MALAYSIA MALAYSIA 1Q 14 MALAYSIA 2Q 2014 GDP Growth 4.70% 6.20% 6.40% Gov. Debt as % of GDP 53.10% 65.2% Redefined 65.2% Gov. Deficit as % of GDP -4.50% -4.10% -4.10% Balance of Current Acc in USD Billion Inflation 3.2% 3.40% 3.30% Unemployment 3% 2.80% 2.60% Population (Million) = = Global competitivnes index (WEF ) Stage of development (WEF ) 24 = = Stage 2 to 3 Efficiency to Innovation = =

27 MALAYSIAN DEMOGRAPHIC - FACT FILE +3.6 M +1.6 M +6 M +2.6 M

28 MALAYSIAN MIGRATION FLOWS - FACT FILE 22,000, Malaysian Migration Flow Rural to Urban Areas 21,000, ,000, ,000, ,000, ,000, ,000, ,000, MALAYSIAN FLOW Source: World Bank Statistics 2012: 72.5% of the Malaysian population lives in urban areas 2012: 21,000,000 Malaysians live in urban areas 3.5% growth every year

29 MALAYSIAN WEALTH DISTRIBUTION - FACT FILE FEW CONSIDERATION ON MALAYSIANS WEALTH: Malaysian average per capita income 2013 (PPP) Source IMF/WB USD17,046 per year = RM4,400 (per month) Malaysian Wealth Distribution Lowest 20% Highest 20% Share 5% of Malaysian wealth Share 40% of Malaysian wealth = Median 60% share 55% 18,000,000

30 MALAYSIAN WEALTH DISTRIBUTION - FACT FILE FEW CONSIDERATION ON MALAYSIANS WEALTH: PER STATE AFFORDABILITY VALUES 2012 State State by state (est) Population in % of GDP 2012 per Capita at Affordable House value (30 yrs monthly current prices BLR %) income = Loan Yearly Monthly repayment Per capita Per household RM RM RM RM RM Kuala Lumpur 1,718,680 73,931 6,161 2, , ,000 Pulau Pinang 1,654,640 37,006 3,084 1, , ,000 Selangor 5,626,240 36,135 3,011 1, , ,000 Malacca 832,320 33,550 2, , ,000 Negeri Sembilan 1,040,400 32,511 2, , ,000 Johor 3,337,360 24,574 2, , ,000 Sabah 3,437,360 19,010 1, , ,500

31 MALAYSIAN HOUSEHOLD DEBT - FACT FILE 80.7% of the Malaysian Household debt is financed by the Banking System

32 MALAYSIAN HOUSEHOLD DEBT - FACT FILE Household NPL ratios, as per BN and MBB reports, have been falling dramatically over the past few years from 7.5% in 2006 to just 1.4% mid 2013 and is now at 1.2% 80.7% of the Malaysian Household debt is financed by the Banking System

33 HOUSING EXISTING STOCK AND FUTURE SUPPLY STATE SUPPLY OF LANDED TILL 2020 EXISTING STOCK AND HOUSE SUPPLY TILL 2020 SUPPLY OF LOW COST TILL 2020 LOW COST ON POPULATION % SUPPLY OF HIGH RISE TILL 2020 TOTAL HOUSES SUPPLY BY 2020 POPULATION BY 2020 NEED/OVERSUPPLY OF HOUSES BY 2020 KUALA LUMPUR 113, , % 251, ,774 1,870, ,559 SELANGOR 833, , % 342,154 1,666,893 6,279, ,336 JOHOR 652, , % 87,968 1,001,411 4,499, ,400 PENANG 204, , % 63, ,411 1,633,703 61,157 MALACCA 138,607 50, % 18, , ,506 97,005 NEGERI SEMBILAN 265,638 90, % 47, ,824 1,276,244 21,591 PAHANG 230,251 69, % 17, ,969 1,674, ,251 PERAK 383,460 95, % 12, ,242 2,494, ,170 PERLIS 19,804 9, % 1,602 30, ,400 30,150 KELANTAN 67,511 12, % 4,189 84,422 1,533, ,782 TERENGGANU 91,254 43, % 1, ,453 1,045, ,168 KEDAH 247, , % 3, ,100 1,947, ,057 SABAH 98,335 62, % 41, ,883 3,443, ,738 SARAWAK 189,640 51, % 14, ,448 2,543, ,304 GRAND TOTAL FOR MALAYSIA 3,536,100 1,725, % 909,416 6,171,360 31,399,685 3,476,669

34 MALAYSIA AND THE REGION: WHERE ARE WE? Average price of property per country SEA REGION to income per capita (PPP) ratio Ranking Country RM/psf House of 1,000 Sq.Ft. GDP Per capita (PPP) USD GDP Per capita (PPP) RM Property value to income ratio 1 Hong Kong 3, ,124, , , Singapore 2, ,684, , , Australia 1, ,345, , , Japan 1, ,266, , , South Korea , ,990 89, Taiwan , , , Brunei , , , China , ,957 25, Thailand , ,458 27, Myanmar , ,324 4, Malaysia , ,046 54, Philippines , ,802 12, Vietnam , ,133 10, Cambodia , ,149 6, Indonesia , ,271 13, Laos , ,521 8, Source: IMF - World Bank - CIA Property value

35 MALAYSIA AND THE REGION: WHERE ARE WE? Average price of property per country SEA REGION Property value to income per capita (PPP) ratio Ranking Country RM/psf House of 1,000 Sq.Ft. GDP Per capita (PPP) RM Property value to income ratio 10 Myanmar , , China , , Cambodia , , Vietnam , , Philippines , , Hong Kong 3, ,124, , Thailand , , Singapore 2, ,684, , Indonesia , , Japan 1, ,266, , Australia 1, ,345, , South Korea , , Laos , , Taiwan , , Malaysia , , Brunei , , Source: IMF - World Bank - CIA

36 Malaysian Economic and Property Market 2014 Performance and Outlook 2015: Are we in the bricks?

37 The best way to predict the future is to create it! Malaysia fast moving towards fully developed country status Financial services & Islamic Financial World Hub IT and future through MSC (Multimedia Super Corridor) Oil & Gas Education Tourism & Health Tourism Entertainment & Creativity Logistic Manufacturing, Halal, Natural Resources..

38 PENINSULAR MALAYSIA: THE FUTURE Penang: the 8 th destination worldwide to retire. Kota Baru: the Northern Educational Hub with 15 Local and International Universities already working to establish a northern campus Ipoh: retirement homes and health tourism Kuantan: the new commercial port, the already committed investment from Chinese, European and American Multinational Corporation Klang Valley: the Northern, Southern and Western Corridor and the Megaprojects Iskandar Malaysia: the most Strategically Sustainable Location in the region (SEA)

39 SARAWAK CORRIDOR OF RENEWABLE ENERGY Bintulu: 200,000 population O&G Centered economy Miri: almost 400,000 population O&G Centered economy Kuching: almost 1,000,000 population Services and tertiary sector

40 SABAH: THE LAND BELOW THE WIND SABAH PROPERTY MARKET SUSTAINABILITY Kota Kinabalu: almost 650,000 population Economy based mostly on services and tourism. Manufacturing remains a strong component of local GDP. Sandakan: almost 400,000 population Economy based on Palm Oil, Hardwood, Logistic and Tourism Tawau: almost 400,000 population Timber, Cocoa, Food Processing, Tourism and Services

41 MALAYSIAN PROPERTY MARKET

42 PENANG Halal Industry, Logistic, Electronic, Retirement, Tourism - Penang Harbur is one of the ONLY 2 Halal Harbur in the orld - Well connected to Thailand and most important city of the Northern Region. International Airport. - Penang Island ranked 8 th preferred destination for foreigners to retire - Penang highly ranked for quality of healthcare and health tourism - Penang is targeting 5 million tourist arrival by 2015 out of forecasted Malaysian 30 million

43 PENANG Halal Industry, Logistic, Electronic, Retirement, Tourism - Penang Harbur is one of the ONLY 2 Halal Harbur in the orld - Well connected to Thailand and most important city of the Northern Region. International Airport. - Penang Island ranked 8 th preferred destination for foreigners to retire - Penang highly ranked for quality of healthcare and health tourism - Penang is targeting 5 million tourist arrival by 2015 out of forecasted Malaysian 30 million

44 PENANG Halal Industry, Logistic, Electronic, Retirement, Tourism - Penang Harbur is one of the ONLY 2 Halal Harbur in the orld - Well connected to Thailand and most important city of the Northern Region. International Airport. - Penang Island ranked 8 th preferred destination for foreigners to retire - Penang highly ranked for quality of healthcare and health tourism - Penang is targeting 5 million tourist arrival by 2015 out of forecasted Malaysian 30 million

45 PENANG Halal Industry, Logistic, Electronic, Retirement, Tourism - Penang Harbur is one of the ONLY 2 Halal Harbur in the orld - Well connected to Thailand and most important city of the Northern Region. International Airport. - Penang Island ranked 8 th preferred destination for foreigners to retire - Penang highly ranked for quality of healthcare and health tourism - Penang is targeting 5 million tourist arrival by 2015 out of forecasted Malaysian 30 million

46 PERAK The Raise of Ipoh - Ipoh: the healthier city of Malaysia with lakes, mountains, rivers and hot-springs which give high breathability through daylong breezes - Ipoh: ranked 6 th less expensive destination worldwide for retirement living (expatriates ranking) - Ipoh: local Government and Private Operators to profitably tap into Visit Malaysia year 2014 and Year of Festival Ipoh: conveniently located and easily accessible within 2 hours from Kuala Lumpur and Penang

47 PERAK & IPOH: HIGHLY SUSTAINABLE MARKET 2013 Status Landed Low cost High-rise 2014 Existing stock 150,637 44,715 2,580 Total 197, Completion 3, Incoming Supply 10,666 3, Starts 4, Planned Supply 9, New Planned Supply 3, ,531 19,209 IPOH TOTAL HOUSES BY ,672

48 PERAK & IPOH: HIGHLY SUSTAINABLE MARKET TOTAL IPOH POPULATION AS AT ,535,192 CURRENT DEMAND OF HOMES 383,798 ESTIMATE NEED OF HOUSES TOTAL IPOH POPULATION AS AT 2015 (Est +1.2% yr) DEMAND OF HOMES BY 2015 ESTIMATE NEED OF HOUSES (4 MEMBERS PER HOUSEHOLD) TOTAL IPOH POPULATION AS AT 2020 (Est +1.2% yr) DEMAND OF HOMES BY 2020 ESTIMATE NEED OF HOUSES (4 MEMBERS PER HOUSEHOLD) 185,866 1,591, , ,318 1,688, , ,556

49 NEW INFRASTRUCTURE WITH BUDGET 2014: WEST-COAST HIGHWAY West-coast highway West Coast Expressway Banting-Taiping 250 km

50 NEW INFRASTRUCTURE WITH BUDGET 2014: WEST-COAST HIGHWAY

51 NEW INFRASTRUCTURE WITH BUDGET 2014: WEST-COAST HIGHWAY

52 RETIREMENT LIVING # 10 Thailand # 9 Uruguay # 8 Malta # 7 Mexico # 6 Colombia # 5 Spain # 4 Costa Rica # 2 Ecuador # 1 Panama

53 TOURISM OPPORTUNITY

54 TOURISM OPPORTUNITY YEAR ARRIVALS Mil. Tourist RECEIPT Billion RM

55 KL GREATER KL KLANG VALLEY 2020 AND BEYOND Klang Valley 1990 Klang Valley 2012

56 KL GREATER KL KLANG VALLEY AND BEYOND Klang Valley view from 130 km Hong Kong view from 130 km Klang Valley: 7,800,000 population Hong Kong: 7,200,000 population Just a consideration on ho Greater KL should e ol e

57 KL GREATER KL KLANG VALLEY AND BEYOND Klang Valley view from 130 km Hong Kong view from 130 km Klang Valley: 7,800,000 population Hong Kong: 7,200,000 population Just a consideration on ho Greater KL should e ol e

58 MALAYSIAN PROPERTY MARKET SUSTAINABILITY Greater KL will reach 10 million people (Mega City) by 2020 Singapore aspires to have 6.9 million by 2030 Iskandar Malaysia aim to have 3 million by 2025

59 KL GREATER KL KLANG VALLEY AND BEYOND

60 KL GREATER KL KLANG VALLEY AND BEYOND

61 KL GREATER KL KLANG VALLEY AND BEYOND

62 KL GREATER KL KLANG VALLEY AND BEYOND

63 KLANG VALLEY AND THE SOUTHERN CORRIDOR

64 KL GREATER KL KLANG VALLEY AND OFFICE PACE KL METROPOLIS IN ONLY 4 KM RADIUS WARISAN MERDEKA Bukit Bintang City Centre Ex Pudu Jail KL Central TRX KL Eco City City of Malaysia

65 GREATER KL, KLANG VALLEY AND THE FUTURE OF COMMERCIAL PROPERTIES

66 GREATER KL, KLANG VALLEY AND THE FUTURE OF COMMERCIAL PROPERTIES

67 GREATER KL, KLANG VALLEY AND THE FUTURE OF COMMERCIAL PROPERTIES

68 GREATER KL, KLANG VALLEY AND THE FUTURE OF COMMERCIAL PROPERTIES

69 HOUSING: CURRENT AND FUTURE DEMAND ESTIMATE IN KUALA LUMPUR/KLANG VALLEY

70 ISKANDAR MALAYSIA: STRATEGICALLY SUSTAINABLE LOCATION

71 Malaysian Property Market Iskandar Malaysia Strategically Sustainable

72 Malaysian Property Market Iskandar Malaysia: A well planned success history!

73 ISKANDAR MALAYSIA: STRATEGICALLY SUSTAINABLE LOCATION Committed Investment Achievements Economic Development has been given the priority. As at December 2013 out of the RM130 billions of committed investment IRDA has achieved RM133 billions of which 45% is realized.

74 Malaysian Property Market Iskandar Malaysia Investment by Sector

75 Malaysian Property Market Iskandar Malaysia Senai Nusajaya Medini 1984

76 Malaysian Property Market Iskandar Malaysia Senai Nusajaya Medini

77 Malaysian Property Market Iskandar Malaysia Senai Nusajaya Medini

78 Malaysian Property Market Iskandar Malaysia Senai Nusajaya Medini

79 ISKANDAR MALAYSIA: STRATEGICALLY SUSTAINABLE LOCATION Supply of Affordable Houses Far Behind Demand Iskandar Malaysia is one of the Malaysian States where the demand of houses with values between RM250 and RM600 psf is still mostly unsatisfied

80 Malaysian Property Market Iskandar Malaysia: A well planned success history!

81 ISKANDAR MALAYSIA: STRATEGICALLY SUSTAINABLE LOCATION Offer of Affordable Houses Far Behind Demand

82 SARAWAK PROPERTY MARKET SUSTAINABILITY

83 SARAWAK PROPERTY MARKET SUSTAINABILITY SCORE PLANNING

84 SARAWAK PROPERTY MARKET SUSTAINABILITY

85 SARAWAK PROPERTY MARKET SUSTAINABILITY Item Sarawak Landed Low Cost High rise A Existing stock 153,232 47,742 10,858 TOTAL EXISTING 153,232 47,742 10,858 B Completions 3, C Incoming supply 18,600 2,570 2,388 TOTAL BY ,487 50,521 13,542 D Starts 5, ,146 E Planned supply 9,130 1,055 2,031 F New planned supply 6, ,862 TOTAL BY 2020 PER TYPE 196,291 52,320 18,581 GRAND TOTAL 267,192

86 SARAWAK PROPERTY MARKET SUSTAINABILITY TOTAL SARAWAK POPULATION AS AT ,444,261 A CURRENT DEMAND OF HOMES 488,852 B+C ESTIMATE NEED OF HOUSES TOTAL SARAWAK POPULATION AS AT 2015 (Est +0.5% yr) DEMAND OF HOMES IN 3 YARS TIME 277,020 2,481, ,222 D+E+F ESTIMATE NEED OF HOUSES TOTAL SARAWAK POPULATION AS AT 2020 (Est +0.5% yr) DEMAND OF HOMES BY ,672 2,543, ,752 ESTIMATE NEED OF HOUSES 241,560

87 SARAWAK PROPERTY MARKET SUSTAINABILITY

88 THE LAND BELOW THE WIND PROPENOMIC OF ABAH DEVELOPMENT CORRIDOR

89 THE LAND BELOW THE WIND PROPENOMIC OF ABAH DEVELOPMENT CORRIDOR SABAH DEVELOPMENT CORRIDOR (SDC) VI ION TO BE A LEADING ECONOMIC REGION IN ASIA BY BEING A PREFERRED GATEWAY FOR TRADE, INVESTMENT AND LEISURE FOR TALENT AND BUSINESS

90 THE LAND BELOW THE WIND PROPENOMIC OF ABAH DEVELOPMENT CORRIDOR SPECIAL FOCUS KEY ECONOMIC AREAS (KEAs) IN THE CORRIDORS OF DEVELOPMENT NCER ECER ISKANDAR MALAYSIA & PENGERANG SABAH DEVELOPMENT CORRIDOR SCORE AGRICULTURE AGRICULTURE AGRICULTURE SAMALAJU EDUCATION EDUCATION TANJUNG MANIS MANUFACTURING MANUFACTURING MANUFACTURING & LOGISTIC MUKAH TRANSPORTATION & LOGISTIC OIL, GAS & PETROLCHEMICALS OIL, GAS & PETROLCHEMICALS OIL, GAS & ENERGY PALM OIL TOURISM TOURISM TOURISM TOURISM

91 THE LAND BELOW THE WIND PROPENOMIC OF ABAH DEVELOPMENT CORRIDOR KEY RESULT AREAS (KRAs) IN THE CITIES GREATER GEORGE TOWN KREATER KUANTAN GREATER JOHOR BAHRU GREATER KOTA KINABALU SARAWAK CITIES PUBLIC TRANSPORT PUBLIC TRANSPORT URBAN PUBLIC TRANSPORT IMPROVING MOBILITY AND TRAVEL EXPERIENCE GREATER KUCHING MIRI AFFORDABLE QUALITY HOUSING KUANTAN WATERFRONT CITY REJUVENATION AND REVITALISATION DEVELOPING AND MODERNIZING KK AS LIFESTYLE HUB WASTE MANAGEMENT & SUSTAINABLE URBAN DEVELOPMENT SEWERAGE MANAGEMENT & FLOOD MITIGATION CRIME IMPROVING EARLY CHILDCARE EDUCATION BOOSTING PUBLIC & PRIVATE HEALTHCARE BOOSTING TOURISM IN GREATER KK

92 THE LAND BELOW THE WIND SABAH PROPERTY MARKET SUSTAINABILITY EXISTING SPACE AND OCCUPANCY RATES FOR OFFICE BUIMDING COMPLEX AS AT DECEMBER 2013 TOTAL AVAILABLE SPACE (Sq.Ft.) SQ.FT. OF STATE OFFICE BUILDING AS AT 2013 OFFICE SPACE INCOMING PLANNED FLOOR AREA OCCUPANCY PER CAPITA ON SUPPLY SUPPLY (Sq.Ft.) RATE EXISTING KUALA LUMPUR 82,595, % ,192,257 1,449,747 SELANGOR 33,088, % ,233,270 - PULAU PENANG 11,480, % ,386 1,597,912 JOHOR 11,036, % ,046,714 - SABAH 7,260, % ,817 - SARAWAK 6,467, % ,416 - MELAKA 4,163, % ,982 - MALAYSIA 203,365,538 77% ,973,359 5,373,716

93 THE LAND BELOW THE WIND SABAH PROPERTY MARKET SUSTAINABILITY EXISTING SPACE AND OCCUPANCY RATES FOR SHOPPING COMPLEX AS AT DECEMBER 2013 TOTAL SPACE (Sq.Ft.) SHOPPING SQ.FT. OF INCOMING PLANNED STATE COMPLEX AS AT 2013 RETAIL SPACE SUPPLY SUPPLY FLOOR AREA OCCUPANCY PER CAPITA ON (Sq.Ft.) RATE EXISTING SELANGOR 31,958, % ,497 72,280 KUALA LUMPUR 26,118, % ,909, ,506 JOHOR 17,942, % , ,804 PULAU PENANG 16,012, % , ,743 SARAWAK 6,602, % , ,993 SABAH 5,734, % ,575,038 - MELAKA 3,915, % ,242,272 - MALAYSIA 133,092,287 81% ,488,814 4,923,828

94 Thank you! Facebook Daniele Gambero For questions please to:

95 DISCLAIMER AND COPYWRITE To the best of our knowledge, all information included here falls under the fair use or public domain guidelines of copyright laws. We strive for accuracy but cannot be held responsible for any errors in information featured in the slides or incorrect attributions. REI Group of Companies uses reasonable efforts to include accurate and up to date information however REI Group of Companies makes no warranties or representations as to its accuracy. REI Group of Companies assumes no liability or responsibility for any errors or omissions in the content. The quotes, articles, news and views are not necessarily representative of the views of REI Group of Companies and its directors and Management. This Presentation has been shared for personal use and knowledge ONLY. Any inappropriate use will be prosecuted according to the law and any total or partial use of this presentation for public viewing or publishing must be pre-authorized in writing by REI Group of Companies.