KHIDR Newsletter

June 9-15, 2025

ASEAN 2045 Vision: Opportunities for Malaysia’s Property Sector

Malaysia has proudly taken the lead in launching ASEAN’s landmark Kuala Lumpur Declaration, marking a transformative shift with the ASEAN 2045 Vision. This ambitious 20-year roadmap positions ASEAN to become the world’s fourth-largest economy, signalling profound implications for growth, investment, and development across the region .

For Malaysia’s property sector, the ASEAN 2045 Vision brings strategic opportunities and challenges, demanding proactive engagement from industry professionals:

Enhanced Infrastructure = New Development Prospects

Expect significant investments in regional connectivity initiatives, including advanced transportation networks, logistics hubs, and integrated cross-border infrastructure. These initiatives promise to unlock new development areas, create urban growth opportunities, and revitalise existing urban centres. Property developers will find fresh prospects around key transport nodes, economic corridors, and emerging suburban markets .

Rapid Digital Transformation

Digital innovation stands at the core of the Vision, driving substantial investments in smart technologies. Property management will evolve rapidly, with increased adoption of intelligent building systems, IoT-driven solutions, and advanced analytics for resource efficiency and enhanced tenant experiences. Developers and facility managers must adapt swiftly to integrate these transformative technologies into everyday operations .

Increased Emphasis on Sustainability

Sustainable and resilient urban development has become a priority under the ASEAN 2045 Vision. With stricter environmental standards, property projects will increasingly require green certifications, energy efficiency, waste management systems, and climate-adaptive designs. Developers and investors who embrace sustainability will find themselves well-aligned with both regional policies and changing consumer preferences, positioning them favourably in competitive markets .

Rise in Foreign Investment

As ASEAN strengthens its global economic presence, Malaysia is strategically positioned to attract heightened foreign investment, notably in the commercial and residential property sectors. Foreign investors will likely focus on prime growth areas, integrated developments, and strategic sectors such as tourism, industrial real estate, and premium residential communities, thereby increasing market liquidity and stability .

Stronger Regional Integration and Talent Development

Enhanced regional integration means broader market access and increased mobility of skilled labour. This provides opportunities for property sector players to leverage regional talent pools, enhance workforce competencies, and cultivate innovative ideas across borders. The property sector will benefit from diverse expertise, increased cross-border collaboration, and stronger market competitiveness .

In essence, the ASEAN 2045 Vision equips Malaysia’s property industry with a strategic framework to align with regional aspirations. The vision’s focus on urban resilience and infrastructure connectivity presents significant opportunities for Malaysia’s property sector to align with regional growth strategies and sustainable development practices.

References:

  1. Kuala Lumpur Declaration explained: What does Asean’s 20-year ‘2045 Vision’ promise?
  2. ASEAN 2045: Our Shared Future
  3. Why ASEAN’s new Digital Economy Framework Agreement is a gamechanger
  4. ASEAN Vision 2045 to address megatrends, security, inclusion

Progress. Forward: Reinvigorating Mutiara Damansara Through Walkability 🚶‍♀️

Progress. Forward: Reinvigorating Mutiara Damansara Through Walkability 🚶‍♀️

Malaysia is facing a growing traffic challenge. With 38.7 million registered vehicles and a population of 34.1 million, we now have 4.6 million more vehicles than people.

This imbalance raises important questions about how we use our roads, how we allocate space between vehicles and people, and what kind of urban experience we want to create.

The facts are clear:

These numbers are not just data points—they are signals urging us to move forward.

Driving Forward with Purpose

Recognising the need for change, Boustead Properties is moving forward with purpose. Guided by the Mutiara Damansara Urban Rejuvenation Strategic Blueprint, we are reimagining how urban spaces can better serve people, support businesses, and respect the environment.

In conjunction with our 30th anniversary, our immediate focus is Jalan PJU 7/2—a vital connector between the Mutiara Damansara MRT station and the surrounding commercial and residential hubs. Through minimal-intrusion yet high-impact improvements, this corridor is being thoughtfully redesigned to prioritise pedestrian access, safety, and comfort, while laying the groundwork for a more vibrant, walkable environment and encouraging the emergence of third spaces—inviting areas where people can gather, connect, and experience the township beyond just transit or commerce.

Progress Starts with Us

This transformation is not about massive overhauls—it’s about meaningful progress. With a series of improvements such as wider sidewalks, safer crossings, and clearer signage, we’re testing practical solutions that place people at the centre of urban design.

Equally important, we are working closely with diverse stakeholders through multistakeholder partnerships to ensure the transformation is both inclusive and responsive. This is a shared journey—and an opportunity to shape the kind of township we all want to live and work in.

A Blueprint for Urban Progress

This initiative is part of a wider strategy to future-proof our developments. By creating walkable, accessible, and safe urban spaces, we generate greater value—not just in property, but in everyday life.

Real progress means building environments where people want to walk, connect, and stay. As we move forward with the transformation of Mutiara Damansara, we’re also setting the pace for a greener, people-focused future across our townships.

Let’s lead the way—together.

How U.S. Tariffs Could Influence Malaysian Property Prices

An article from Asia Times highlights the global ripple effects of the Trump administration’s latest tariffs on building materials—particularly steel. Though the policies originate in the U.S., they are already impacting property markets worldwide, including here in Malaysia. So, how does a foreign tariff end up affecting local property prices? Let’s break it down with a simplified scenario.

The Scenario: You’re a Developer in Malaysia

You’re planning a new apartment project. Suddenly, the U.S. imposes a 25% tariff on imported steel. This sets off a global chain reaction:

  1. Price Impact in the U.S.:
    A tonne of steel that previously cost USD 1,000 now costs USD 1,250.
  2. Steel Export Shift:
    A Chinese steel manufacturer producing 1,000,000 tonnes annually originally allocated:

    • 70% (700,000 tonnes) to the U.S.
    • 30% (300,000 tonnes) to other countries
    • 5% (50,000 tonnes) specifically to Malaysia
  3. Post-tariffs, the allocation shifts:
    • Only 40% (400,000 tonnes) is sent to the U.S.
    • The remaining 60% (600,000 tonnes) is redirected to other market.
    • Malaysia’s share increases to 60,000 tonnes (a 20% rise)
  4. Short-Term and Long-Term Market Effects:
    • Months 1–2: Oversupply drives prices down 15% (from RM3,000 to RM2,550 per tonne).
    • Months 3–4: Chinese manufacturers scale back production, leading to market uncertainty.
    • Months 5–6: Reduced supply causes prices to spike 30% (to RM3,900 per tonne).

The Cost to Developers

Let’s say your project is a 30-storey building requiring 1,500 tonnes of steel:

  • Initial budget: RM4.5 million
  • With price volatility: Costs could range from RM3.8 million to RM5.85 million

This kind of fluctuation leads developers to either:

  • Increase unit prices by 10–15% (e.g., a RM500,000 unit could rise to RM550,000–RM575,000), or
  • Delay project launches by 6–12 months until price stability returns

Why It Matters

This example illustrates a simple truth: global trade policies can have direct, tangible effects on local markets. Decisions made abroad—such as U.S. tariffs—can disrupt supply chains, inflate material costs, and ultimately affect the price and availability of homes here in Malaysia.

Note: The scenario above is simplified for educational purposes.

the Curve Cooling Upgrade Delivers Major Savings

Boustead Facilities Management (BFM) is proud to announce the successful completion and full operation of the upgraded chiller system at the Curve’s district cooling plant, marking a major milestone in Boustead Properties’ sustainability journey.

This achievement is the result of a strategic 10-year Energy Performance Contract (EPC) signed with Opus International (M) Berhad in March 2024. The partnership showcases the strength of collaboration between government-linked companies, driving innovation and sustainability for the nation.

Real Results Already Showing

The upgraded system is already delivering significant outcomes:

  • Better Efficiency: The system now uses 27% less energy to cool the building.
  • Big Monthly Savings: We’re saving approximately RM84,000 every month.
  • Greener Energy Use: We’re saving 66,000 kWh of electricity each month, which reduces carbon emissions by around 45,000 kg CO₂e monthly—a meaningful step toward a cleaner environment.

This initiative directly supports Sustainability Goal 3: Green Building and Township Development and reinforces Boustead’s commitment to ESG excellence.

Beyond the Curve

If one mall can cut energy use by 27%, imagine the impact across all our properties—and beyond. Could similar innovations help transform entire communities, creating healthier, greater and greener futures for everyone?

Got questions or ideas? Reach out to the Strategic Communications team at stratscomms@bprop.com.my.