KUCHING: Sarawak’s robust development and modern infrastructure will continue to attract investment in the real estate market, said Juwai IQI Global chief economist Shan Saeed.
“Market value has increased around 4 per cent and transaction price increased by 8-9 per cent in 2024. The market has demonstrated resilience and vibrancy at the macro level,” he told Sarawak Tribune.
Shan believes Sarawak, along with Selangor and Penang, will play a crucial role in driving Malaysia’s GDP growth.
He expressed optimism about the state’s real estate market, citing buoyant investor sentiment.
He predicted that Malaysia’s GDP would grow between 5 and 6 per cent in 2025, reflecting the nation’s macroeconomic stability and strong investment and consumption patterns.
“The economic consistency in policy outlook and deriving benefit from economic stability has yielded solid fundamentals for the economy,” he said.
He highlighted that Sarawak’s economic outlook remains strong, underpinned by sustained demand for oil and gas, growing demographics, a burgeoning tourism sector, and a strong demand for five-star hotels.
Crucially, he emphasised the strong correlation between infrastructure investment and GDP growth.
“Quoting Nobel laureate and University of Chicago professor, the late Robert Fogel, I referenced a landmark study from 1964 that analysed how infrastructure systems, such as the American railroad and Japan’s Shinkansen, significantly enhanced economic performance,” he said.
“Fogel came up with his strategic analysis of how infrastructure can significantly improve the overall GDP equation of the economy. This holds true not only for Sarawak but also for other states like Johor, Penang, Selangor, and Pahang,” he added.
Shan believes Sarawak will continue to benefit from the state government’s economic policies and the anticipated strong Malaysian economic growth in 2025.
“Malaysia continues to remain relevant in the global economic outlook as macroeconomic stability draws investors to park funds in the country. Strategic geography makes Malaysia very important for global sophisticated and smart investors,” he added.
