Malaysia’s First of its Kind Program to Attract Investment Through Trusts

MPV Realty Malaysia Sdn Bhd is confident its newly launched asset-backed solution (ABS) program will be able to ease the problem of unsold houses in Malaysia, valued at about RM19.7 billion, by attracting mainly foreign investors. David Hew Chee Seng, Chief Executive Officer of the property trading and asset management firm, said the program, the first of its kind in Malaysia, will attract investors that are keen to own property assets through trusts and generate income in the country with the developers involved. RKG Klozer Trust Ltd acts as a trustee for the ABS programme, facilitating the investment process and protecting the interests of investors. ''Valuation-wise, Malaysian assets are very attractive now compared to those of other countries in the region. I would say it's time to look at them. Our aim is to bring funds into the country and ease the developers' burden," he told. Citing data from the National Property Information Centre, Hew said there were 30,290 units of unsold completed houses as at the third quarter of 2021. Hence, he said, ABS could be a solution for the problem, especially for the unsold high-end property segment, by looking at measures and collaborations with developers and regulators to ease asset ownership among the foreigners. For a start, the program will focus on residential units in prime areas, and it will be extended to include the commercial segment and nationwide coverage in the future. RKG vice president Previn Ramanathan said the company's involvement as a trustee would provide confidence to investors as their investments are being backed by assets. RKG, which has expertise in wealth management, is currently operating in more than 40 countries.