The Malaysian G government is keen to attract more overseas property investors especially from the UK, Singapore and India according to the country’s Foreign Investment Committee, as they look to make it easier for foreign buyers by performing a comprehensive deregulation of investment guidelines.

Kumar Tharmalingam, member of the, board of governors at, Malaysia Property Incorporated, said: ‘The most important aspect in purchasing Malaysian real estate is the land law system that allows for transparency and enforceability of ownership. Foreigners also have no impediment to buying freehold Malaysian real estate and to sell when the need arises without restriction.’

Currently investors from the UK, Singapore, Korea and India have been the busiest purchases of property in the country, spending around $150,000 to $300,000 with Kuala Lumpur, Penang and Johor being the most popular locations.

Recent research by Malaysian Industrial Development Finance (MIDF) indicated that the real estate sector will benefit in 2010 from rising demand and an improving economic outlook, but warned that although sales demand and improving economic sentiment is positive, the fear of demand sustainability or the withdrawal of cheap credit, the absence of attractive promotions and favourable regulations could take its toll on the property sector.

The MIDF report stated: ‘Sales demand for residential properties is expected to remain buoyant as investors continue to deem it as one of the more liquid hedging asset. Speculators are also taking advantage of the current market sentiment to lock-in on gains.’