Sample Essay on Factors Affecting Economic Growth in Malaysia
What is the success story of Malaysia’s economy? Its property market has registered considerable growth over the years. The country’s economic growth is rated among the fasted in the entire region. Last year, Malaysia’s property market enjoyed a growth to the tune of between 15 and 30%, one of the highest in its history. It is important to note that there is high city investment, especially in its capital, Kuala Lumpur, stemming from high foreign investment from key players like the United States, China and Japan. There has been an upsurge in economic activities in the country, which has triggered the demand for high commercial real estate. In this Essay, we look at the Factors Affecting Economic Growth in Malaysia.
The first issue that has impact in Malaysia’s economy is government incentives. Over the years, the government has implemented measures to attract more foreign investors in the country. Among these are various tax and legislative initiatives that have proved worth by encouraging investors from other parts of the world. Today, unlike during previous regimes, foreign investors can acquire property with a value of more than $71,249 without prior approval by the government. There are other tax related initiatives like payment of tax from abroad being lifted. Foreign residents in Malaysia enjoy free car duties among other taxes. This waiver further applies to their property, which they own for more than five years.
The second issue is the low cost of living. Malaysia real estate is of higher quality when compared to several locations. It is important to note that Malaysia’s currency if rated high making its property to be valued below leading world curries like the Euro, Dollar and Pound. However, property per square in the country is cheaper compared to other cities around the world such as New York City. There are is high attraction to the Malaysian property market especially for foreign investors with low buying costs of up to 3.4 to 6.75% of the total value of the property. With high spending power of foreigners, this allows low cost of living for most residents, who can easily afford basic commodities.
Malaysia, like other promising economies is experiencing high rental demand. Malaysia offers high quality property, making the demand for rental services to hike. This demand has also been augmented by improvement in the tourism sector, hitting a high of 8.7%. When rated among the Commonwealth nations, Malaysia’s tourism sector ranks among the best three slots, according to the World Tourism Organization. Between 2000 and 2005, the country registered an increase of 160% in the number of tourists visiting its attraction sites. This has put it on the global map as one of the best tourists’ destination in the world. Affluent expatriates also find Malaysia to be their choice and taste because of the high quality property on the market. A case in point is the Chinese investors, who are already active in the market, with a projected increase in their market activities. Malaysia is also highly accessible by air. For example, there are about 25 flights from UK weekly at affordable rates, from £285, which encourage influx by tourists.
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http://www.globalbizresearch.com/images/files/73848_JEIEJB_%20Tze%20San%20Ong.pdf