I guess this is great news to foreigners who has been waiting on the sidelines to enter the property market in Malaysia.

Lucrative as it seems, the government has finally opened the door to welcome foreign ownership in properties in Malaysia, where previously, the real estate has been guarded jealously.

Previously, foreign ownership of properties was introduced via the Malaysia My Second Home Programme and the owner has to stay in the property they own.

Now, with this new relaxation in rules, foreigners no longer need to be restricted in the number of properties they can own and for what purpose, provided of course, they buy properties worth above RM 250,000.

Below is the news from wires, foreign news agency Agence France Presse and local news agency, Bernama.

__________________

Malaysia relaxes foreign ownership property rules to woo investors

KUALA LUMPUR, Dec 20, 2006 (AFP) - Malaysia on Wednesday said it will allow
foreign nationals to buy residential properties worth more than 250,000 ringgit
(71,429 dollars) without approval in order to attract investors.

Under current rules, foreigners who want to invest in Malaysia’s property
market have to get approval from the government’s Economic Planning Unit for
properties valued at 250,000 ringgit and above.

“The new step is aimed at drawing foreign investors to buy residential
units in the high-end category and is expected to bring about positive changes
to the property and construction sectors,” said a statement from the prime
minister’s office.

“The increase of investments in the property sector by foreign investors
will also increase the inflow of foreign currency exchange,” it added.

Malaysia has been aggressively seeking greater foreign investment, and
Second Finance Minister Nor Mohamed Yakcop said cutting back on bureaucracy for
approvals was proof of its commitment.

“We are making it easy for them to buy high-end residential properties and
we mean it,” he was quoted as saying by the state Bernama news agency.

He said the government was cutting back on red tape to boost the flow of
foreign direct investment and revive the ailing property sector, which has been
facing a housing glut.

Nor Mohamed also said foreign investors were likely to take up properties
at the higher end of the market, at values of between 700,000 to 900,000
ringgit.

The ruling will be effective from Thursday December 21 and will not have
any conditions on the usage of the property or the limit of units to be
purchased, it said. - AFP

_________________

FOREIGNERS CAN BUY HOUSES OVER RM250,000 WITHOUT FIC’S APPROVAL

PUTRAJAYA, Dec 20 (Bernama) — Foreign nationals will be allowed to buy
residential properties worth more than RM250,000 per unit without needing
approval from the Foreign Investment Committee of the Economic Planning
Unit in the Prime Minister’s Department.

In addition, the condition of usage and the limit of units to be
purchased will not be imposed, a statement from the Prime Minister’s Office
said today.

It said the new ruling takes effect from Dec 21, 2006.

“The government always seek initiatives to reduce bureaucracy and to
generate economic growth,” it said.

The statement added that the new step is aimed at encouraging foreign
investors to buy residential units in the high-end category and is expected
to bring about positive changes to the property and construction sectors.

“Apart from that, the increase of investments in the property sector by
foreign investors will also enhance the inflow of foreign currency
exchange,” the statement added. — BERNAMA

http://www.bernama.com/bernama/v3/news_business.php?id=237550