KUALA LUMPUR: RHB Research remains optimistic about Malaysia's real estate sector in light of potential increased foreign direct investment into Southeast Asia, following the relection of Donald Trump as the US president.
During "Trump 1.0," Malaysia saw a surge in demand for industrial properties as companies sought to relocate or expand into the Southeast Asian region to sidestep trade barriers linked to the US-China trade war.
Major Malaysian developers with significant industrial segments such as Sime Darby Property Bhd, Mah Sing Group Bhd, Sunway Group Bhd and UEM Sunrise Bhd are well-positioned to capitalise on similar trends this time around, according to RHB Research.
Johor's industrial parks, particularly i-Park and Nusajaya Techpark, experienced heightened interest from global firms looking to decentralise production to mitigate risk, a trend that accelerated during the Covid-19 pandemic and may continue with further trade tensions, it added.
The firm highlighted that Malaysia's neutral political stance and favourable conditions, such as its geographical location, affordable land, and well-developed fibre infrastructure, keep the country appealing for data centre investments, which remain unaffected by the US election results.
Sime Darby and Mah Sing in particular are likely to see continued demand for data centre developments.
Despite a temporary slowdown in property investments before the election, RHB Research noted that investor interest could be reinvigorated by Malaysia's infrastructure projects with developments such as the Johor-Singapore special economic zone and the potential KL-Singapore high-speed rail, further enhancing Malaysia's position as a desirable investment destination in Southeast Asia.
Overall, RHB Research maintained an "overweight" outlook on the sector.