01/09/2025

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MONDAY | SEP 1, 2025

UAE on radar of Malaysians eyeing high-yield properties

Ű BY JOHN GILBERT sunbiz@thesundaily.com

o Dubai and Abu Dhabi in particular are emerging as magnet for wealthy investors looking to shift away from traditional markets such as the UK and Australia

KUALA LUMPUR: Malaysian investors are increasingly diversifying their capital beyond traditional hotspots, turning to emerging markets as a hedge against global risks. High interest rates and punitive taxes have prompted many to withdraw from Australia, while in the United Kingdom, investors are either offloading London assets or refinancing to unlock capital for redeployment. This shift signals growing awareness that emotionally driven decisions – such as buying property near children’s schools – can often result in less-than-optimal outcomes. “Savvy investors are realising the importance of aligning property purchases with clear objectives, whether it’s for pure investment or as a family home. Trying to achieve both often leads to compromised decisions,” CSI PROP International Properties executive director Virata Gamany told SunBiz . He added that investors facing challenges in Australia and London are now redirecting funds towards stronger-performing markets such as Dubai in the United Arab Emirates (UAE). “While the UK remains attractive to some – particularly due to the pound sterling – Manchester continues to be the country’s top performing investment city, offering com pelling opportunities for forward-thinking investors,” Virata said. He noted that the UAE, particularly Dubai and Abu Dhabi, is rapidly emerging as a wealth magnet for Malaysians. Dubai’s appeal lies in its zero-tax regime – no income, capital gains or inheritance tax – coupled with an 85% surge in property values over the past five years and rental yields ranging from 6% to 12%. KUALA LUMPUR: As L’Oreal Malaysia celebrates 30 years in the country, managing director Tomas Hruska said the beauty giant is shifting its playbook to capture Malaysia’s fast-growing young and digital-first consumer base while deepening its social and sustainability footprint. “We have been the company driving the growth of the beauty market, bringing innovations to consumers and democratising access across all price points. But what gives us pride is going beyond business, supporting communities, championing sustainability and embedding long-term impact,” Hruska told reporters after the launch of the company’s socio-economic impact report recently. Malaysia’s beauty industry, which is worth RM13.6 billion, is one of the most dynamic in Southeast Asia and Hruska believes its future is increasingly digital. “Ten years ago we were advertising on TV, newspapers and radio. Today, most of our investment goes to social media and digital platforms because that’s where consumers are,” he said. Platforms such as TikTok, Instagram and Shopee have become vital not just for product promotion, but for building brand engagement, particularly among younger Malaysians. Hruska noted that the lines between online Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

around 7% capital growth in the last 12 months, retaining its appeal among Malaysians. “Malaysians are now casting their nets wider,” Virata said. “Dubai and Abu Dhabi are increasingly on the radar – often driven by word-of-mouth from peers though broader awareness is growing.” Asked about the most common mistakes Malaysians make when entering international property markets, Virata pointed to the danger of emotional decision-making and reliance on informal advice. “Property is one of those topics everyone has an opinion on, but not all advice is created equal,” he said. He recalled meeting a successful business man who nearly bought a property in London based on an Uber driver’s recommendation, until he realised he was about to make a major financial decision based on advice from someone with no real estate experience or market insight. Another frequent pitfall, Virata noted, is blindly following a close friend or relative into an investment without conducting proper due diligence. “When things go south, it’s not just your money you lose; it can also damage personal relationships.” Vitata urged investors to constantly question the credibility of advice, even from agents, by asking if they have personally invested and what their track record looks like. “In today’s uncertain and fast-evolving experience, remains the group’s competitive edge. Hruska cited the company’s latest molecule, Melasil, developed over 18 years of research, which targets hyperpigmentation and dark spots. The technology has been rolled out under La Roche-Posay and L’Oreal Paris. “Product innovation is at the heart of our business. But alongside this, we also bring beauty tech tools such as SpotScan, which helps consumers diagnose acne issues and build a skincare routine. Very often, we combine product innovation with tech and experiential retail, whether through mall podiums or livestream events,” he said. The company is also tapping into“entertainment innovation”, blending beauty launches with immersive consumer experiences both online and offline.“It’s not just about selling a product. It’s about creating an engaging journey that educates, entertains and builds trust,” Hruska said. With 30 brands in Malaysia, L’Oreal caters to a spectrum of consumers, from mass-market names such as Maybelline and Garnier to luxury labels such as Lancome and YSL Beauty. Hruska said each brand plays a distinct role, aligned with different aspirations and purchasing power. “You cannot meet diverse beauty needs with one single brand. For some, YSL is an aspirational entry point into couture. For others, Japanese or Korean brands like Takami and 3CE resonate more. Every brand has its place,” he said.

Abu Dhabi, meanwhile, is drawing major institutional interest. BlackRock, for example, has committed US$1 billion (RM4.2 billion), while the city is rolling out landmark developments, including six world-class museums and a planned Disney entertainment hub. “These markets are fast becoming strategic pillars in globally diversified portfolios,” Virata said. He observed that Malaysian investors are either adopting a more defensive approach or aggressively expanding their global portfolios amid ringgit volatility and domestic economic uncertainty, “Wealthy Malaysians have long viewed international property as a backup plan. While Australia and the UK were once top picks, interest is waning due to policy shifts and less favourable conditions,” he explained. In Australia’s eastern states, a new 4% land tax – layered on top of high income and capital gains taxes, elevated interest rates and weak capital growth – has pushed many foreign investors into losses, triggering a wave of exits. “The latest land tax was the tipping point,” Virata noted. The UK is experiencing similar headwinds. New tax rules targeting non-domiciled individuals have led to capital flight, weighing heavily on London’s property market, where average returns have stagnated at just 0%–2% over the past seven years. In contrast, Manchester has delivered

environment, especially with the rise of AI and disruptive technologies, it’s nearly impossible to forecast five or ten years ahead,” he said. “That’s why investors must focus on fundamentals and assess markets using a clear, proven framework.” On whether Malaysians consider factors such as currency risk, tax exposure and capital controls when building cross-border portfolios, Virata said the Covid-19 pandemic served as a wake-up call, particularly for high-net-worth individuals, that a “Plan B” is no longer op tional. “When safety, stability or access to capital can’t be guaranteed at home, diversification becomes essential. Currency risk, tax impli cations and capital controls are now front-of mind when making cross-border decisions. “There is risk everywhere. The key is not to over-concentrate in a single market. Many Malaysians already have significant exposure in Australia and the UK. “But the current climate demands a broader geographic spread. Familiarity should no longer be mistaken for stability. The world is changing too quickly for that,” Vitrata said. Virata says there is risk everywhere, and the key is not to over-concentrate in a single market. Hruska underscored that sustainability remains a central pillar. The company has reduced plastic usage by shifting towards recycled materials, runs school campaigns on recycling through its Garnier brand, and works with the Malaysian Recycling Alliance to shape environmental policies. “Being the largest beauty company, it is our responsibility to lead this change. It’s not only about products, but about educating consumers and working with the government to shape the right policies,” he said. On social programmes, L’Oreal aims to scale its “Beauty for a Better Life” initiative, a vocational training programme for women, to reach 5,000 beneficiaries. Other initiatives include support for women in science and skills development for salon professionals. While L’Oreal does not disclose its exact market share in Malaysia, Hruska confirmed the company is the market leader but still sees “a lot of room to grow”. “The KPI (key performance indicator) I value most is not just market share, but how many Malaysians use our products daily. Today, we reach 6.7 million consumers. My ambition is to get to 10 million as quickly as possible,” he said. As Malaysia’s young population drives demand, Hruska believes the next decade will be defined by digitalisation, innovation and purpose-led growth.

L’Oreal Malaysia taps into young, digital-savvy consumer base

Hruska says sustainability remains a central pillar in L’Oreal.

and offline shopping are blurring. “We call it ‘O plus O’, offline plus online. Some people discover a product in-store and repurchase online; others first see it online and then buy in-store. Our role is to make that ecosystem seamless,” he said. To support this shift, L’Oreal Malaysia has invested in building new in-house capabilities, from social media advocacy to affiliate management. It also collaborates closely with retail partners such as Watsons and Guardian to integrate physical and digital shopping experiences. Innovation, both in science and consumer