KUALA LUMPUR: Property consultancy Knight Frank Malaysia expects the local industrial property sub sector to see increasing capital inflows from Chinese investments.
Knight Frank Malaysia capital markets executive director Allan Sim said the industrial and mixed-use assets in Malaysia will be buoyed by the rising interests from Chinese investors into the manufacturing sector - where Chinese manufacturers are expected to set up production facilities here.
“Similarly, the industrial sector will also benefit from China playing a pivotal role in developing Malaysia’s digital economy, alongside the development in Malaysia’s logistics and warehousing sectors,” he said at the launch of Knight Frank Malaysia’s New Frontiers: The 2018 Report today.
“In the longer term, we can also expect a flow-on effect to business activities, creating a demand for hospitality-related services.
The New Frontiers report is aimed at helping investors understand potential opportunities that China’s Belt and Road Initiative could generate.
The report’s Belt and Road Index assesses 67 countries considered core to China's initiative.
Notably, Malaysia (US$2.37bil) is one of the top recipients of Chinese outbound real estate investment into the Belt and Road countries, totaling US$10.2bil over the last four years.
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