theSun | MONDAY JULY 13 2009 13

business

Property industry
gets positive
feedback after
FIC deregulation
KUALA LUMPUR: The positive
feedback received by the property
industry from foreign investors fol-
lowing the recent announcement
on the deregulation of the Foreign
Investment Committee (FIC)
guidelines cannot be translated into
actual investment as yet, said the
Deputy Minister of International
Trade and Industry Datuk Mukhriz
Mahathir.
“As the announcement was
made just a week ago, we did not
expect to receive such a quick
reaction from foreigners.
“It is sufficient to say at this time
that the response is very positive
but cannot be translated yet into
investments as we hoped, with the
opening of the property market,”
he said after officiating the Real
Estate and Investment Exhibition
Malaysia 2009 (MAREIX) here on
Saturday.
According to Mukhriz, al-
though impacted by the economic
downturn, the property industry
in Malaysia is still seeing high
demand from buyers both locally
and overseas.
“We may be experiencing an
economic downturn but demand
for property from local and over-
seas buyers is still at a level that
can sustain the industry,” he said.
He said of late, property in the
country has succeeded in attract-
ing the interest of investors from
China, Indonesia, Singapore, Korea
and the Middle East.
“Among the reasons for this is
that property investments are able
to provide an attractive return after
two to three years and as we know,
our economy is expected to recover
by the end of the year or in the first
quarter of next year,” he stated.
Mukhriz said the average price
of property which was cheaper
in Malaysia, had also made the
country attractive to investors.
As such, he said the level of con-
fidence among investors towards
local property was still strong,
although the country’s economy
had suffered a downturn.
This confidence, he said, could
be seen when exhibitors at the
MAREIX 2009 stated they faced no
problems in selling their property,
irrespective of the location.
“Maybe due to that, they want
to invest in property at this early
stage in the hope that the value
will increase soon. The feedback
from the property industry is that
they are not affected,” he said.
With amendments being un-
dertaken by the FIC to a number of
policies to attract foreign investors
to Malaysia as well as liberalisa-
tion, Mukhriz said it will surely
increase the number of foreigners
buying property in Malaysia.
He said the support and coop-
eration of all agencies involved
in the property sector will help
developers, contractors as well as
bumiputra suppliers especially, to
continue to expand and enhance
their network and market.
– Bernama

Qatar offers €7bil for stake

in Porsche: Report
BERLIN: The Gulf emirate of Qatar has offered €7
billion (RM34.3 billion) for a stake in Porsche, which
would allow the German luxury sports car maker to
clear a large part of its debts, a report said Saturday.
According to the weekly Der Spiegel, the Qatar
Investment Authority would take 25% of Porsche Au-
tomobil Holdings and options on Volkswagen shares
currently held by Porsche.
In addition Volkswagen, which has proposed buy-
ing 49% of Porsche’s core sports car operations, has
upped its bid to more than €4 billion (RM19.6 billion), ‘Rio arrest
Der Spiegel said, without quoting sources. bad for
Porsche has scheduled an extraordinary meeting
of its supervisory board on July 23 to discuss offers by China’s
Qatar and Volkswagen, sources said on Friday. business
Porsche has run up some €9 billion (RM44.1 standing’
billion) in debt it accumulated in a failed attempt to
increase its holding in VW, the biggest European car pg 14
maker.
It currently owns about 51% of VW, which has
made its counter offer in a boardroom drama between
the car makers’ dominant influences, the Porsche and
Piech families.
A takeover of Porsche by VW would reinforce the
power of Ferdinand Piech, a major shareholder in
Porsche and head of the VW supervisory board.
A deal with Qatar would boost Wolfgang Porsche
and give his company a chance to renew its takeover
bid for the much bigger VW, and preserve the chances
of Porsche boss Wendelin Wiedeking keeping his
job.
In late June, the Porsche group rejected VW’s
counter offer, saying it “is not a practical solution.”
On Friday, the Porsche spokesman said however
that for the automaker, “the goal remains the creation
of an integrated group” with VW. - AFP