05/03/2025

BIZ & FINANCE WEDNESDAY | MAR 5, 2025

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Malaysia’s natural gas production rises in 2024

Local real estate market set to remain robust for rest of 2025: Juwai IQI

PETALING JAYA: The Malaysian property market should maintain its surprisingly strong performance through the rest of 2025, according to Juwai IQI co-founder and group CEO Kashif Ansari. “The real estate market demon strated resilience and growth across all key segments in 2024,” he said, adding that they saw the number and value of transactions hit their highest levels in a decade. He said the strong real estate market helped boost the share prices of many property industry companies publicly traded on Bursa Malaysia. WMG Holdings Bhd’s value quadrupled during 2024, leaving it with a market capitalisation of more than RM400 million. “Here is what’s going to affect the property market in 2025. First, AI and digital infrastructure investments are expected to be major drivers of industrial real estate growth. Over RM57 billion has already been committed for data centres, with a total investment pipeline of RM149 billion. That indicates continued investor confidence. “Second, foreign direct investment and Malaysia’s strategic participation in BRICS and CPTPP will contribute to sustaining the commercial real estate market. “In the residential sector, we project price growth of up to 3% in 2025, along with an increase in new home supply and continued improvement in trans action volume. “The southern region, particularly areas with strong cross-border ties to Singapore, will see heightened demand as companies and consumers begin to take advantage of the new transport links and the incentives of the Johor-Singapore Special Economic Zone,” said Ansari He added the new economic zone more tightly binds Malaysia to its largest investor, which will boost economic activity more than similar pacts with other countries could. “Singapore sends more foreign direct investment to Malaysia than any other country. While the 2024 statistics are not yet available, Singapore topped the charts in 2023 with its RM22.6 billion of FDI. “My overall outlook for the Malaysian real estate sector in 2025 is that we will have another strong year. Industrial and commercial segments will lead the way, supported by high-tech investments and expanding trade partnerships,” Ansari said.

o Up by 3% to 2,948.8 billion cubic feet, led by rebound in fourth quarter output PETALING JAYA: Natural gas production increased by 3% to 2,948.8 billion cubic feet in 2024, according to the Department of Statistics Malaysia’s Mining of Petroleum and Natural Gas Statistics, Fourth Quarter of 2024, yesterday. Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said, “The production of natural gas recovered by 2.4% year-on-year in fourth quarter of 2024 (Q3 2024: -2.7%) with the production of 792.8 billion cubic feet.” Meanwhile, crude oil and condensate recorded a production of 45.7 million barrels, showing growth but remained in negative with a 7% decline compared to the 8.9% reduction in the preceding quarter. “This performance was supported by the smaller decline in crude oil to 9.6% (Q3 2024: - 14.2%), with a total production of 31.3 million barrels. However, the production of condensate decreased by 0.8% compared 4.6% in third quarter of 2024. Crude oil contributed 68.5% of total production crude oil and condensate, while condensate represented 31.5% or equivalent to 14.4 million barrels. On the quarterly basis, the production of crude oil and condensate increased by 9.3% (Q3 2024: -9.3%), driven by condensate at 7.5% (Q3 2024: 3.2%) and natural gas by 20.2% (Q3 2024: -5.4%).” The Weighted Average Lifting Price for crude oil and condensate in Malaysia declined US$76.3 per barrel in the fourth quarter of 2024 (Q3 2024: US$82.0 per barrel). The price reduction aligned with the global downward trend in WTI and Brent prices, which drop to US$70.7 per barrel (Q3 2024: US$76.2 per barrel) and US$74.6 per barrel (Q3 2024: US$79.8 per barrel) respectively. Commenting on the performance of external trade, Mohd Uzir said, “The export value of crude petroleum and condensate increased to RM6 billion in the fourth quarter of 2024 (Q3 2024: RM5.9 billion). Thailand strengthened position as the main destination of crude petroleum and condensate exports in 2024 with a value of RM2.0 billion (32.7%), followed by Australia (21.8%) and India (9.9%).” Meanwhile, the export value of refined petroleum products decreased to RM26.5 billion (Q3 2024: RM27.9 billion) with RM5.9 billion or 22.3% exported to Singapore, Indonesia (22.0%) and Australia (19.8%). The export value of liquefied natural gas (LNG) reached RM16.7 billion in this quarter (Q3 2024: RM12.7 billion) with RM6.6 billion (39.8%) exported to Japan,

followed by South Korea (30.2%) and China (21.3%), he added. “The import value of crude petroleum and condensate increased to RM15.1 billion (Q3 2024: RM14.2 billion) which is 41.1% or RM6.2 billion imported from Saudi Arabia, followed by the United Arab Emirates (19.1%) and Angola (9.5%). Furthermore, the import value of refined petroleum products decreased by RM25.4 billion (Q3 2024: RM28.7 billion). The highest import value of RM9.1 billion or 35.7% was from Singapore, followed by India (11.9%) and Saudi

Arabia (9.2%). The import value of LNG totalled RM2.2 billion in the fourth quarter of 2024 (Q3 2024: RM2.8 billion). The majority 83.9% or RM1.9 billion, imported from Australia, followed by the United States (8.4%) and Mozambique (7.7%),” said Mohd Uzir. In 2024, the production of crude oil and condensate decreased by 3.8% to 181.6 million barrels (2023: -1.9%; 188.8 million barrels) caused by a 7.3% drop in production of crude oil (2023: - 6.3%). Conversely, production of condensate increased by 5.3% compared 11.3% in 2023.

Malaysia emerging as industrial and data centre investment magnet PETALING JAYA: The rise of Malaysia, particularly Johor, as a prime destination for industrial and digital infrastructure investment underscores its growing importance in the regional economy, said Asia Pacific Real Estate Association (APREA) CEO Sigrid Zialcita. government representatives to discuss foreign investment opportunities in Malaysia’s industrial and data centre sectors. from multinational corporations looking to expand operations, particularly in manufacturing, logistics, and technology-driven sectors. growing emphasis on green data centres and renewable energy integration to align with global ESG goals.

Additionally, with the government’s push towards AI-driven data centres, Malaysia is gearing up to support the next generation of high-performance computing, further solidifying its position as a key player in the region’s digital economy. Knight Frank Malaysia land & industrial solutions executive director Allan Sim said, “Malaysia is at the forefront of attracting high value industrial and logistics investments. With strong fundamentals and investor-friendly policies, we see significant opportunities for businesses to thrive in this market.”

Lee said, “Johor’s industrial market is evolving rapidly, supported by strong government initiatives and infrastructure growth. The state’s strategic location, coupled with competitive incentives especially under the JS SEZ, makes it an attractive proposition for investors looking at long-term growth in Southeast Asia.” Knight Frank Malaysia reinforced that Johor is well-positioned to become a leading data centre hub, backed by its access to land, power availability, and government-backed incentives that support digital infrastructure investment. Sustainability also remains a key priority, with a

Knight Frank Malaysia director and head of Johor branch Lee Kun Thye, who spoke on “Emerging Market: Industrial & Data Centre Landscape”, underscored Malaysia’s growing appeal as a prime destination for foreign direct investment, fuelled by infrastructure develop ment, government incentives, and the country’s rising prominence in the digital economy. Johor has rapidly emerged as a key player in Malaysia’s economic landscape, with its proximity to Singapore and robust industrial ecosystem positioning it as a global investment destination. The state has seen increased interest

With the Johor-Singapore Special Economic Zone creating new avenues for growth, she said, Malaysia is poised to attract more institutional capital, reinforcing its position as a strategic gateway to Southeast Asia. This was highlighted by Sigrid during the Malaysia Market Outlook Seminar 2025, hosted by Knight Frank Malaysia in collaboration with APREA and UEM Sunrise which brought together key industry leaders, investors and