06/03/2025

BIZ & FINANCE THURSDAY | MAR 6, 2025

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Uptick in commercial real estate transactions

o Recovery driven by HNWIs and institutional investors: Knight Frank KUALA LUMPUR: According to The Wealth Report , Knight Frank’s flagship publication, global commercial real estate (CRE) investment rebounded strongly in 2024, rising to US$806 billion (RM3.6 trillion), marking an 8% year-on-year increase. This follows the sharp 43% contraction recorded in 2023, signaling renewed investor confidence. Cross-border capital flows also gained momentum, increasing by 12% to US$171 billion, underscoring a global appetite for real estate investments. Malaysia mirrored this global trend, experiencing an uptick in commercial real estate transactions, driven by high net worth individuals (HNWIs) and institutional investors seeking long term value. This recovery aligns with the rise in Malaysia’s HNWI population, reflecting growing wealth accumulation and investment interest. Knight Frank UK commercial research head Will Matthews said that despite global economic uncertainties, they are witnessing a resurgence in investor confidence, with private capital leading the charge. “The continued decline in swap rates and anticipated interest rate cuts are expected to create a more favourable investment climate, unlocking greater transaction volumes in 2025,” he added. Private capital remained the dominant force in the CRE market in 2024, with institutional investors deploying US$268 billion – accounting for 33% of total investments. Public market investors also saw the highest year-on-year increase, posting a 22% rise in investment volumes. In Malaysia, private investors have been particularly active in the office and industrial sectors, capitalising on strong demand for high-quality assets. The industrial sector led global investment, securing US$216 billion, while the living sector followed closely at US$205 billion. Office investment reached US$173 billion, signaling a recovery in confidence in workplace assets.

Chai and Ng.

Funding Societies, Boss Boleh join forces to empower startups and young SMEs KUALA LUMPUR : Funding

country head Chai Kien Poon remarked that this partnership with Boss Boleh is another step forward in supporting young entrepreneurs, particularly those with limited financial history, by providing them with tailored financing solutions. With the advent of e-invoicing across all business segments, he said they are also keen to explore the potential benefits of e-invoicing data in enhancing their capabilities in ensuring that underserved businesses can access the funding they need to grow. Boss Boleh co-founder and CEO Angie Ng said: “Cash is king, and managing cash flow remains the top challenge for business owners, particularly for startups, where many fail due to cash flow issues. “Through our partnership with Funding Societies and their innovative digital term and invoice financing solutions, we’re addressing this critical pain point. “This collaboration is especially vital for new businesses, which often struggle to secure bank loans due to a lack of trade history.” At Boss Boleh, she said they provide the support to business owners to simplify the process of preparing the relevant documents and resolutions to apply for a loan facility. “Together, we’re empowering entrepreneurs by providing fast, reliable access to funding to help them thrive,” said Ng.

Societies | Modalku, the largest digital finance platform for small and medium enterprises (SMEs) in Southeast Asia, has partnered with Boss Boleh, an online company secretary provider that simplifies company incorporation and secretarial procedures for new businesses. The partnership aims to address key challenges faced by businesses such as access to financing, corporate administrative hurdles, and how to navigate the latest e-invoicing implementation. Through this partnership, companies, specifically startups and SMEs in operation for less than one year, can avail either a digital term or invoice financing – supported by Funding Societies, to focus on growing their business and succeed in Malaysia’s evolving business landscape. Boss Boleh, with its experience in helping businesses set up and remain compliant, along with access to accounting and bookkeeping services, tax, incorporation, company secretary and software solutions including e-invoicing, ensures that entrepreneurs have a strong foundation for growth. The partnership between Funding Societies and Boss Boleh enhances its comprehensive support by providing eligible SMEs with access to financial solutions, empowering them to scale seamlessly. Funding Societies Malaysia

Heaton-Watson and Yeoh.

increasing number of ultra-wealthy individuals diversifying their portfolios into real estate. The country remains an attractive destination for high-value property investments, particularly in the luxury residential and prime commercial segments. Knight Frank property hub international residential associate director Dominic Heaton-Watson commented: “The growing population of high-net-worth individuals in Malaysia is reshaping the local real estate market. “We are witnessing strong demand for luxury residences, particularly in Kuala Lumpur, as well as a heightened interest in commercial properties that offer stable yields. “With global investors also returning to real estate, Malaysia stands to benefit from increased capital inflows in the coming years.” In Malaysia, international investor interest remains strong, particularly in Kuala Lumpur’s prime office and hospitality sectors. With a significant pool of capital ready for deployment, 2025 is poised to be a turning point for the country’s real estate market. With Malaysia positioned as a key player in Southeast Asia’s investment landscape, both domestic and international investors are expected to leverage emerging opportunities, further solidifying the country’s real estate market as a destination of choice.

Knight Frank Malaysia group managing director Keith Ooi remarked: “Malaysia’s commercial real estate market continues to evolve, with investors showing strong interest in prime office and logistics assets. “As economic conditions stabilise and financing costs ease, we expect a wave of strategic acquisitions, particularly in key urban centers such as Kuala Lumpur, Penang, and Johor Bahru. “Investors are increasingly seeking long-term value, and the resurgence of private capital plays a crucial role in this recovery.” Knight Frank property hub international projects executive director Adrian Yeoh said: “The rebound in global commercial real estate investment has had a direct impact on Malaysia, where we are seeing increased activity from HNWIs and institutional players. “With interest rates expected to ease, we anticipate stronger demand for prime assets, particularly in Kuala Lumpur’s office and logistics sectors.” The number of HNWIs worldwide grew by 4.4% in 2024, reaching 2,341,378 individuals. North America led this expansion with a 5.2% increase, followed by Asia at 5%, Africa at 4.7%, and Australasia at 3.9%. The Middle East (2.7%), Latin America (1.5%), and Europe (1.4%) also saw gains. Malaysia has been a key beneficiary of this wealth growth, with an

Malaysians embrace GenAI rapidly, but women underrepresented KUALA LUMPUR: Malaysia is witnessing a rapid surge in GenAI adoption, yet women remain significantly underrepresented in this evolving field, according Coursera, an online learning platform which released its Closing the Gender Gap in GenAI Skills playbook, a new resource aimed at addressing the gender gap in Generative AI skills. build a more inclusive and equitable AI landscape. Coursera data shows that while women constitute 46% of all learners in Malaysia, they make up just 33% share of GenAI enrollments, which closely aligns with the global trend where women represent 32% of total GenAI enrollments. women to lead in the AI-driven era. Despite this disparity, Coursera said there is a growing interest among Malaysian women to upskill themselves in GenAI. On Coursera, women are six times more likely to enroll in beginner-level courses than intermediate ones, favouring structured and accessible entry-points. This trend is mirrored in Malaysia, where the most popular Generative AI courses among women are introductory. Many women cite “lack of time” as

A BCG report states that only 43% Malaysian women are exposed to technology before university and 53% women employed in the tech workforce are keen to shift to non-technical roles. “While Malaysia has demonstrated an exceptional appetite to understand and harness Generative AI technology, it is crucial for the country’s workforce development and international competitiveness that this appetite is shared equally,” said Coursera global head of enterprise Karine Allouche.

Last year, women enrollments in GenAI surged by 459%, outpacing the 287% growth rate among men. Coursera’s playbook highlights key barriers limiting women’s participation in GenAI, along with strategies to bridge the gap, including women often hesitate to engage in Generative AI courses due to self-doubt, even when they have the skills.

Malaysia currently ranks 31st globally in GenAI enrollments among women learners, emphasising the need for more targeted interventions to ensure equitable access to GenAI opportunities and enable more

their top reason for discontinuing STEM (science, technology, engineering and mathematics) courses, reflecting the reality of balancing caregiving and work responsibilities.

The playbook explores actionable strategies to empower more women to harness GenAI, highlighting the critical need for continued efforts to