Population: 24 385 858
Language: Bahasa, English
Time Zone: GMT +8
Government: Monarchy
Coastline: 4 675 km
Sunshine: Up to 350 days
GDP Growth: 5.2% (2005)














Malaysia is a country of many cultures, wonders and attractions. Located in the heart of Asia, Malaysia is a country of fascinating landscapes boasting some of the best beaches and diving spots in the world. Formerly a British Colony the island has a familiar feel for UK visitors, with the English language almost universally spoken and understood and the property laws and banking systems based on the UK model. Rapid long term economic and tourism growth is forecast or Malaysia, which will be boosted by 2007 being 'visit Malaysia year' to support the islands 50 years of independence. Malaysia's tropical climate with temperatures averaging 30°C gives tourists the opportunity to experience guaranteed sunshine for most of the year. Property in Malaysia is very affordable with a low cost of living, low inflation and local financing available at attractive rates if required. The costs of property maintenance and management fees are generally low as labour costs are inexpensive.

List of topics:

• Getting There
• Economy
  
• History and Politics
• Investment Potential
• Passports / Visas
• Property Purchase
• Health advice / risks
• Travelling in Malaysia
• Hotels
• Restaurants
• Electricity supply
• Hours of Business
• Social Etiquette
• Comparison to Thailand
• Legal System
  
  

Getting There
Malaysia has five international airports. Most visitors arriving from the UK travel on one of the 3 daily direct flights from London or from the twice weekly flight from Manchester. Airport taxes are included in the price of the airline ticket. Flights are available to Malaysia from most major UK airports. Cheap flights have also recently been launched by Air Asia X for as little a £1.69 a flight!

BG Estates Worldwide will be delighted to assist in arranging viewing trips to Malaysia, please do not hesitate to contact 0800 321 32 07 or email us on sales@bgestates.com for further details.

Economy
The Barisan Nasional, the governing coalition, obtained a large victory at the March 22, 2004 snap election, giving Prime Minister Abdullah Ahmad Badawi who took over on October 31, 2003, a fresh and strong mandate and a huge impetus for change. The key medium-term challenge is enhancing competitiveness and resilience of the economy. The Government has initiated actions to: a) reviewing and rationalizing the incentive structure, b) reducing the regulatory burden and improving the delivery system, c) improving the labour market and ensuring the supply of a skilled workforce able to keep up with technology, d) promote greater usage of ICT by firms, especially SMEs, and increase their ability to innovate.


History and Politics
Malaysia 's history has been one of continual interaction with foreign powers and influences because of its strategic position between the Indian Ocean and the South China Sea. Its location has made it the meeting place for both traders and travellers alike. Hindu-Buddhist influence was strong in the northwest before the coming of Islam. Archaeological findings in Kedah provide evidence of a Hindu-Buddhist civilization that dated back to 300AD.

By 1400, when the Malacca Malay Kingdom was at the height of its power, Islam had become a major influence. By 1511, however, Malacca had fallen to the Portuguese. Meanwhile the Dutch had been establishing their influence and presence in Java. By 1641, the Dutch had also taken over Malacca but they in turn lost it to the British who had been slowly consolidating their hold on the Malay states, following Francis Light's arrival in Penang in 1786. By 1815 Malacca was in British hands and in 1819, Stamford Raffles founded Singapore. Thereafter, through treaties, relentless political pressure and diplomacy, the British slowly extended their control over all the states of the Malay Peninsula.

Sarawak , once part of the Sultan of Brunei's Empire, had been ruled since 1841 by a British adventurer named James Brooke and his descendants. In 1888, Sarawak and North Borneo (Sabah) became British protectorates. By the 1920s, all the states that eventually comprised Malaysia were under British control. The first stirrings of Malaysian nationalism were felt in the 1930s and following the end of World War II, the momentum of nationalism picked up again, culminating in independence for the Federation of Malaya in 1957 and the formation of Malaysia in 1963. Today, Malaysia is a prominent member of the Association of Southeast Asian Nations (ASEAN). Malaysia has an elected constitutional monarchy. The Supreme Head of State is the Yang di-Pertuan Agong (King) who is elected every five years from among the nine Rulers.

Investment Potential
As a former British colony, Malaysia is at once familiar and exotic. The country lies just north of the Equator and has a year round tropical climate with all the sandy beaches and cool mountain retreats that you would expect. The capital, Kula Lumpur is a thriving, cosmopolitan hub containing some exceptional culture. The city has a distinctive blend of East and West with traditional Malay architecture side by side with modern sky scrapers - The Petronas Towers are currently the tallest buildings in the world.

The property market in Kuala Lumpur and the main resort areas is driven by significant external investment, particularly from investors based in regional hubs such as Singapore and Hong Kong. Much of this investment is supporting the strong growth in the Malaysian tourist industry that is currently occurring. Malaysia has all the exotic heritage and natural beauty of Thailand with the current advantage of being less developed, less expensive and more stable.

Economic growth in Malaysia has been significant despite the 1997 Asian crisis. When combined with the growth of tourism, the level of external investment and the current costs of property, it is easy to sea why Malaysia provides such a stunning level of opportunity.


Property Purchase
Overseas buyers are eligible to buy 2 houses at a cost of not less than RM150,000 each (about £24,000). For this purpose, they are also entitled to apply for a loan from a local bank for 60% of the purchase price - sometimes more. There is no upper limited to the cost of properties that may be purchased by overseas investors in Malaysian property. Some banks can lend up to 70%.

The standard procedure for purchasing is almost exactly the same as the UK. For new developments, Architects Certificates are issued at each build stage and stage payments generally then become due. This offers peace of mind to the purchase that an independent architect has assessed the development before the next payment is due.

Passports / Visas
British visitors do not need a visa to enter Malaysia. They may stay up to three months as a visitor, i.e. they are not permitted to take employment paid in Malaysia. For periods over three months or to undertake paid employment a work permit is required, issued by the Malaysian Immigration Department

Health advice / risks
Medical services are good in Malaysia with an extensive network of both public and private hospitals. Visitors should consult their GP before travelling for advice on vaccinations. Malaria is present in some areas of East Malaysia (Sabah and Sarawak). Tap water is generally safe, but many visitors prefer to drink filtered or bottled water. Visitors should always carry health/medical insurance.

Travelling in Malaysia
The country has an extensive network of trunk roads and air routes. Air travel is relatively cheap and easy with frequent departures to all major cities in Peninsular and East Malaysia (Sabah and Sarawak). There are frequent bus and coach departures for travel between cities by road. It is easy to hire and drive a car on a UK licence, though it is perhaps better to rely on taxis in Kuala Lumpur. Taxis are generally honest and do not expect to be tipped.


Hotels
There is a wide variety of hotels from 5 star downwards. Room rates are very competitive and should include all taxes and service costs. Tipping in hotels is not expected, but not refused. All but the smallest and cheapest hotels accept credit cards.

Restaurants
Malaysia excels in its variety of restaurants and food. Nearly all food outlets are safe to eat at. Most restaurants, except Chinese, are 'halal', i.e. do not serve pork. Most serve alcohol. Prices range vastly. The cheapest meal may cost less than £1. The most expensive restaurants much more, but nevertheless, much less than the UK. Prices in the ''western''-type restaurants usually include taxes and service costs (see '' Hotels'' above). Alcohol, especially wine, can be expensive and add significantly to the price of a meal.

Electricity supply
The electricity supply is the same as the UK at 230 volts AC/50 cycles. The majority of plugs are also the same as the UK's three square-pin type, though the Continental round two pin can be found. Appliances such as hairdryers, laptops, mobile phones and mobile telephone charges can be used as in the UK without the need for adaptors.

Hours of Business
Friday is mosque day. The states of Johor, Kedah, Kelantan, Perlis and Terengganu observe the Muslim holiday on Thursday afternoon and Friday. In these states, Saturday and Sunday are normal working days.

Social Etiquette
Malaysians are usually called by their given names preceded by Mr., Mrs., or Miss. The Chinese use their family names preceded by Mr., Mrs., or Miss. When addressing a titled person you can just use his title without his name. "Datuk" (sometimes spelt Dato or Dato'), which literally means grandfather, is a title conferred to prominent Malaysians by the King or Sultans on their birthdays. The wife of a "Datuk" should be addressed as "Datin" but if it is a woman who is conferred with the title of "Datuk" (which is quite rare) her husband is not affected by her title. Higher up on the title hierarchy is "Tan Sri" (similar to "Sir" in Britain) and the wife of a "Tan Sri" should be addressed as "Puan Sri". Even rarer still is "Tun" (similar to "Lord" in Britain). In fact "Tun" is the highest non-royal title and is limited to 22 holders at any one time. The wife of a "Tun" is addressed as "Toh Puan".

Politeness is the mechanism used for avoiding conflict and reducing anxiety. The aggressive manners of the West can be seen as too abrasive. Ideal behaviour is encapsulated in one word - halus i.e. low key, deferential and self-effacing. Seek advice over the use of titles, which can be confusing.


Overt displays of anger are rare and should be avoided - to lose control is to lose face. In any meeting your hosts may be reluctant to say no to you and may resort to hints which you must decode. As with most Asian countries, Malaysians expect polite and respectful behaviour in public. Visitors should behave courteously; simply displaying polite or respectful behaviour is a first step toward becoming more integrated in Malaysian culture.

Comparison to Thailand
Being so close geographically, Malaysia and Thailand are often compared, especially when it comes to property Investment. To assist in make this comparison, we have included a table below of the difference between the two countries:

Comparison	Thailand	Malaysia
Individual Freehold Possible	No	Yes
Do you need to create local company	Yes	Yes
Is there a 10 year multiple entry Permit	No	Yes
British legal system for property purchase	No	Yes
Local finance available	Rarely	Yes
Local 'partners' required to buy	Yes	No
Legal costs	High	Low
Tax free car	No	Yes
Shareholders required	Yes	No
Contract language	Thai	English
Translators required	Yes	No
Need to employ locals	Yes	No
Annual company reports required	Yes	No
Local directors required	Yes	No
Land registry	Thai model	UK model
Banking system	Thai model	UK model
Highest personal tax rate	37%	20%
CGT on property after 5 years	37%	5%
Sales tax	7%	5%
Tax on investment income	Yes	No
Corporation tax	30%	20%

Legal System
The Malaysian legal system is based on English Common Law, judicial review of legislative acts in the Supreme Court at request of the supreme head of the federation.