Thursday 28 Mar 2024
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KUALA LUMPUR (April 13): Malaysia Property Inc (MPI) has ceased operations as it has accomplished its objective of managing the property overhang issue and in branding Malaysia's real estate sector overseas, the government said today.

"Malaysian property developers are now more prepared and capable of promoting and marketing their projects both locally and abroad on their own," the Economic Planning Unit (EPU) said in a statement today.

MPI, which was set up as a non-profit company under the EPU in 2008, ceased operations on March 31.

EPU said the overhang in residential property was reduced by 55% from 26,300 units in 2008 to 11,816 units by 2014.

"Over the same period, property sales to foreigners, in both the primary and secondary markets, hit RM3.4 billion.

"Although the value of properties bought by foreigners almost doubled since 2008, the share of ownership by foreigners in 2014 remained at 4.1% from the total properties purchased in the country," it said.

MPI also worked with the Ministry of Tourism and Culture in promoting the Malaysia My Second Home (MM2H) programme as well as with investment promotion agencies, such as Malaysian Investment Development Authority (MIDA) and Invest KL, in attracting foreign investors to establish their presence in Kuala Lumpur.

MPI was given a launching grant of RM25 million by the government, while several leading local real estate developers also contributed funds to support its promotion activities, said EPU.

In 2010, MPI set up an exhibition centre in Singapore called 'Malaysian Property Gallery' to promote the sale of Malaysia properties to Singaporeans, which managed to garnered total registered sales of RM848 million.

The gallery was closed in 2012, the same year when MPI's former chief executive officer (CEO) Kumar Tharmalingam stepped down. MPI has no CEO thereafter.

In 2012, MPI brought together Malaysia Airports Holdings Bhd and Mitsui Fudosan to develop the 25,000 sq ft factory outlet Mitsui Outlet Park adjacent to the Kuala Lumpur International Airport in Sepang.

 

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