Hi guys

Im a foreigner living here in MY and I have a foreigner friend (from UK) with a capital of 1M  MYR and he's considering investing in Malaysia's property market. his main objective is to generate a rental income or possibly use it for ABNB. However, he's unsure if this is a good idea or not ?

If it is a good idea, what kind of property should he invest in? Should he focus on residential or commercial properties? And where would be the best location to buy in terms of zoning and area?

we are aware that foreigners have a minimum threshold of 1M  MYR for property investment. Ideally, he would like to purchase two properties with this amount, but I understand that may not be possible.

Your contribution can make a big difference guys

Thank you guys in advance for your advice and insights.

Nah, guide for your friend, scroll down to item 3 "Minimum property price for foreign investment in 2023" in the link and read onwards from there:

https://www.iproperty.com.my/guides/foreign...ete-guide-12332

My dua sen for investment:

The high price restrictions for foreigners buying Malaysian property makes investing via direct purchase in market very difficult to sustain.

The main market for that price point will be high-income executives, of which local execs will be more likely to just buy their own property or rent from locals at a much more favorable price (since current market for both buying and renting is already a bit soft), while foreign execs do not consider Malaysia a very attractive destination to stay/work in relative to other countries in SEA, because we're neither the cheapest to live in nor are we the most developed, on top of being relatively not as foreigner/non-Muslim friendly. At least for the near future lah.

Whether or not this improves, who can say, but we're still poor in competition to attract/retain high-pay execs.

No, fyi i'm not a local, but i have already 5 years here.

Thank you guys for sharing your thoughts we think Malaysia does still offer many advantages, and the rentability is good. but yeah it's essential to consider some of the concerns raised.

One of the prominent issues he mentioned and we all know is the visa situation. It's true that Malaysia's MM2H program make no sense at all compared to other countries in the region. various countries in Southeast Asia offer long-term visas without requiring huge substantial investments making them more attractive.

Additionally, the cost of living in Malaysia is relatively higher compared to countries like Indonesia, Cambodia, Vietnam, and Thailand. This factor should be taken into account when evaluating the overall affordability of living in Malaysia.

But my friend highlighted the rental market in Malaysia, and he says there's good demand with a RM 4-5k / month he believe that Malaysia's real estate market may benefit from future growth, considering the rise of China and emerging countries in Asia. The development activities initiated by the Chinese in Cambodia serve as an example of the transformative potential in the region, attracting people from around the world.

Personally i prefer (FDs) were previously discussed as a viable choice. However, my friend is concerned about keeping cash in the bank beyond 2027, thats why he is exploring property investments as an alternative to diversify and not keeping cash