29/01/2026

PROPERTY THURSDAY | JAN 29, 2026

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Malaysian market to shift from resilience to relevance

Home protection is becoming a modern urban

out all the other online booking services, hotels, hostels, and resorts. “Data from Airbtics, a global data provider, shows that Malaysia has two of Southeast Asia’s 10 top markets for short-term rentals. Only Thailand has more destinations in the top 10. “Tourism rentals are already operating above breakeven yields for investment apartments in many locations. The average occupancy rate in Kuala Lumpur, Kota Kinabalu, and Georgetown are all 59% or higher,” said Ansari. “If you want to understand why tourism is so crucial to the economy, consider that it contributes an average of RM3,500 in economic activity for each Malaysian alive today. That is also why it has such a big positive impact on housing and construction,” he added. Liberty’s non-motor campaign, “Here for You”, reflects a deliberate shift in mindset: protection is no longer about worst-case scenarios alone, but about helping people live confidently, knowing disruptions can be managed when they arise. Anchored by Liberty’s global brand promise, “Today. Tomorrow. Together.”, the campaign reinforces Liberty and Kurnia’s long-term commitment to being present for customers across different stages of life. necessity – here’s why KUALA LUMPUR: As urban living in Malaysia continues to evolve, the role of a home has fundamentally changed. No longer just places to live, today’s homes have become workspaces, family hubs, and personal sanctuaries – often all at once. With this shift, the need to rethink how Malaysians protect their homes, livelihoods, and peace of mind has never been more relevant. Rapid urbanisation, rising property ownership, and increasingly unpredictable weather patterns have reshaped everyday living. High-density residences, shared infrastructure, and climate-related dis ruptions mean that even minor incidents – from fire outbreaks and water leaks to electrical faults or temporary displacement – can have far-reaching consequences on daily routines, income stability, and emotional wellbeing. According to publicly reported data from the Fire and Rescue Department of Malaysia (Bomba), the department responded to over 34,000 fire-related incidents nationwide in 2023, resulting in an estimated RM2.6 billion in losses, as reported by local media. While fires may not be a daily occurrence for most homeowners, these figures underscore a growing reality: risks associated with home ownership are no longer rare or distant – they are part of modern urban life. Against this backdrop, Liberty General Insurance (Liberty) is repositioning the conversation around home protection – not as a fear-driven financial product, but as an essential component of lifestyle continuity and peace of mind. Despite rising urban risks, home insurance remains one of the least prioritised protection products among Malaysians, often overshadowed by mandatory motor insurance. Awareness and understanding of non-motor insurance – including home, personal accident, and property-related protection – continue to lag, even as more Malaysians invest in homes within urban and high-density environments.

KUALA LUMPUR: In 2026, Malaysia’s real estate market is set to transition from resilience to relevance, according to WTW, a real estate consultant and property services provider in Malaysia which is backed by more than 60 years of experience in the industry. In a press statement recently, it said economic stability, policy reforms and infrastructure-led development reposition the sector as a strategic contributor to national growth and the property market is expected to remain steady while increasingly prioritising quality, sustainability, and long-term value creation. WTW which is supported and carried out by 11 branches across Peninsular Malaysia together with 11 associate offices located in East Malaysia and Brunei, said Malaysia’s economy is expected to grow between 4% and 4.5% supported by manageable inflation, improving labour market conditions and accommodative monetary policy. These fundamentals, combined with fiscal reforms under Budget 2026, RMK-13 (Rancangan Malaysia Ke-13), and Visit Malaysia 2026, are expected to sustain demand across key property segments particularly industrial, commercial and well-located residential developments. The defining theme for 2026 is the growing emphasis on future-ready and sustainable assets. ESG requirement have moved from a differentiator to a baseline requirement, especially within the office and industrial sector. Green-certified developments now dominate new office supply, while existing buildings are increasingly being refurbished to remain competitive and relevant in an evolving market landscape. The newly signed Malaysia–US Reciprocal Trade Agreement (ART) alongside increased technology flows, is expected to attract greater foreign investment into higher-value property segments such as advanced industrial parks, mixed-use developments and commercial offices. This momentum is further reinforced by the rising interest in Malaysia’s and technology-driven facilities set to lead next phase of expansion: WTW o Future-ready offices, advanced industrial parks,

Malaysia’s real estate market is evolving towards quality, sustainability, and long-term value. – UNSPLASH PIX

Singapore Rapid Transit System are expected to stimulate investment activity, strengthen industrial demand and support broader real estate development across the state. Meanwhile, Sabah’s real estate market is projected to remain stable, underpinned by resilient demand for landed residential properties and a steady industrial sector. Continued infrastructure enhancements and improved connectivity are expected to support long-term growth, strengthening Sabah’s standing as a stable and resilient property market in East Malaysia. In Sarawak, WTW said momentum continues as infrastructure development and economic stability drive renewed confidence in its property market. Major projects, including the Pan Borneo Highway and Kuching Urban Transportation System initiatives are supporting broader economic activity and enhancing market accessibility. Key areas of opportunity include high-tech industrial and logistics spaces, as well as branded hospitality developments. Overall, Malaysia’s property market in 2026 is expected to remain stable, with growth driven less by volume and more by relevance, quality and adaptability. Developers and investors who align with sustainability, infrastructure connectivity and evolving occupier needs will be best positioned to capture long-term value.

manufacturing sector and growing demand for customised, technology-ready industrial facilities. Together, these developments are driving a more balanced resilient outlook across Malaysia’s key regional markets. In the Klang Valley, WTW said the property market is expected to consolidate around high quality, well-positioned assets. Demand remains focused on developments with strong fundamentals, supported by expanding rail and highway infrastructure. Industrial and logistics assets continue to benefit from decentralisation trends while prime-grade, green-certified offices are outperforming older stock as occupiers prioritise efficiency, sustainability and workplace experience. It added Penang’s real estate market continues to be underpinned by strong industrial activity, particularly in advanced manufacturing and technology-related sectors. Ongoing investments and initiatives aimed at strengthening the state’s innovation ecosystem are expected to support demand for industrial and office space, reinforcing Penang’s position as a key regional growth hub. WTW noted that Johor remains poised for further growth, supported by a strategic southern corridor with strong cross border economic linkages. The Johor-Singapore Special Economic Zone, Forest City Special Financial Zone and the upcoming Johor

How 43m tourists, RM121b will shape local real estate KUALA LUMPUR: When movie star Michelle Yeoh headlined the launch of the I Lite U exhibition in downtown Kuala Lumpur recently, she drew attention to the growing power of the tourism sector to drive growth in Malaysia’s economy and real estate market, according to insights released by Juwai IQI co-founder and group CEO Kashif Ansari. such as short-term rental apartments and hotels, the tourism boom will also drive new activity in the residential real estate market,” he noted. He said as Prime Minister Datuk Seri Anwar Ibrahim said in his speech at the I Lite U event, the tourism industry is growing quickly. VM2026 is designed to make 2026 the year international visitors set a new record, contributing more to Malaysia’s economy than ever before. visitors would contribute a total of about RM121 billion in 2026. Tourism contributes to Malaysia’s economy in multiple ways, including foreign exchange earnings, employment, and small business income. Perhaps the most important growth effect is on the real estate market.

Based on government data showing accommodation accounts for about 18% of tourism spending, Visit Malaysia 2026 could channel roughly RM22 billion directly into property related activity including hotels, serviced apartments, and short-term rentals. Research group Oxford Economics found that Airbnb alone supports 93,000 jobs and contributes RM9.2 billion to the Malaysian economy per year. That’s just Airbnb, and leaves

“Michelle Yeoh’s speech launched the exciting Visit Malaysia 2026 or VM2026 campaign, which will have a significant impact on the property market,” he said. He added that VM2026 is an economic growth strategy intended to drive tourism to record levels. Because property is the destination for about 18% of all tourism spending via accommodation

“The actual number that Tourism Malaysia wants to attract this year is 43 million international visitors. In the first 11 months of 2025, visitor numbers have already reached 38.3 million, so we believe the target is achievable,” said Ansari, adding that this would be more tourists than Malaysia has ever received in a single year. At typical spending rates, that number of

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