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KUALA LUMPUR: Renting a place to stay or a house could become more mainstream among the population, moving forward, in line with developments that are seen in other parts of the world. This could happen following several macro developments in Malaysia on falling birth rates, a present level of high home ownership, the trend towards smaller families among married individuals, increased number of adults choosing to stay single or marry later and affordability. These recent developments were heard at the real estate forum titled “Form to Future” organised by UEM Sunrise in Kuala Lumpur yesterday. But Knight Frank Malaysia’s executive director for research and consultancy Amy Wong said while renting can become more popular among people in the main cities such as Kuala Lumpur, she believes owning a home will still be the main choice for people in the smaller second-tier cities such as Ipoh, Kuantan or Melaka. “Home ownership is at an all-time high at 76% but the other 24% may be waiting to inherit. But then also what is critical if it is about inheritance is to develop homes that can sustain through the generations. “So this means developing good quality homes and not disposable homes,” Wong told StarBiz on the sidelines of the forum yesterday. “I think the trend towards renting will be in the main cities such as Kuala Lumpur. But in the other second-tier cities, it will still be very much about home ownership. “But because we are living in the city, we may feel it is a rental market but this is also because we have so many investors who own units. If there is no robust rental market, then it would leave us with empty units which is another problem,” she added. Earlier in the forum, Urbanmetry’s founder and chief executive officer Koh Cha-Ly said this is a pertinent question to grasp following the ageing population trend society is moving towards. “One thing about the ageing population in Malaysia is that of the 76% or so home ownership levels, what will happen to these (owned) houses when these people are not around anymore? “We are looking at the largest generation in Malaysia that will inherit a home in the next 10 to 20 years and it is going to be the largest number of people who will be born with a house,” Koh said. “They will either inherit it from their parents or inherit land. And honing in further, what will happen to these homes if everybody buys a new house or vice versa? “This is one question that the industry should start thinking of. It is not unprecedented. If you look at other ageing countries such as Japan, Europe or South Korea, they all have this problem and solutions have already been found,” Koh added. She also highlighted that the people who would inherit a home will likely refurbish or renovate it themselves and with the advent of artificial intelligence, the barriers of entry to home development in terms of knowledge of knowing what to do or where to get the approvals or source the relevant materials will be lowered. “To a certain extent, it is no longer a competition about if I can build a house at a cheaper price per sq ft. “This is not enough for the tech-savvy younger buyer because the generation which will inherit land or a house has a chance of outcompeting in terms of price per sq ft construction,” Koh said. Commenting on this, executive director of Socio-Economic Research Centre and veteran economist Lee Heng Guie said with the high home ownership rates, it is likely the younger generation may already not feel a need to own a home anymore. “They may think otherwise since they can’t afford it. So they might opt to rent a house or room instead. “Malaysia’s population growth is 1.1% and with declining fertility rates, there are concerns that this will have an impact on productivity and labour force participation which will impact housing demand along with the ageing population. Aged-care facilities and community living will be in demand here moving forward,” Lee said. Meanwhile, Bursa Malaysia’s director of the origination and listing division Leong See Meng suggested that given these developments, property developers should not just rely on incomes from property development as it can be quite lumpy. “To iron out the lumpiness, perhaps for the overhang units, they can be converted to rental housing or rental housing with an exit such as rent-to-own programmes. “There is no harm in doing this, and if you come to Bursa Malaysia you can always do a secondary issuance, rights issue or private placement to fund this to take up the overhang units,” Leong said at the forum. “Over time, this can also be a robust business to be translated to a rental housing real estate investment trust or REIT, for example. “And if it happens, it will be the first in the country – not only for the sponsoring developer but also for Bursa Malaysia. This can potentially be replicated and is sustainable as well, moving forward,” Leong added. Commenting further on this, Pelaburan Hartanah Bhd’s chief investment officer Norani Mustapha said at the forum that this was a global megatrend that had not reached Malaysian shores. In Tokyo, New York City and London, people can’t afford to buy houses or flats and they’re mostly renting. “And institutional investors are actually going in where they actually own the block and get a property manager to let out the space to whoever is interested,” Noraini said.–THE STAR

KUALA LUMPUR: Johor Corporation (JCorp) Group has appointed Najmie Noordin as its first chief learning officer (CLO). In a statement, JCorp said the new CLO role highlights its commitment to innovation and meeting evolving corporate learning needs as part of its transformation journey. The division includes JCorp Academy (JCA), Johor Skills Development Centre (JSkills), and CEREBRUM, JCorp’s innovative think-and-do tank. Najmie holds an MBA from the University of Manchester and a Bachelor’s Degree in Law (Hons) from Universiti Teknologi MARA (UiTM). His expertise spans people management, sales planning, branding and marketing. Prior to joining JCorp, Najmie served as chief executive officer (Group) at Cosmopoint Sdn Bhd, where he also held the position of chief operating officer (Group).–THE STAR

KUALA LUMPUR: Communications Minister Fahmi Fadzil announced that the Malaysian Communications and Muia Commission (MCMC) is in the final stages of evaluating tenders for the country’s second 5G rollout. “We expect an announcement within the next few weeks on the operators selected to develop the second 5G network,” he told reporters after the launch of CIMB’s Kita Bagi Jadi initiative here. Last month, it was reported that four major mobile network operators (MNOs) had submitted bids to develop the second 5G network: CelcomDigi Bhd, Maxis Bhd, UMobile, and Telekom Malaysia Bhd. Fahmi reiterated that the telecommunications companies involved had agreed on several key principles before acquiring shares in Digital Nasional Berhad (DNB), originally set up as the national 5G wholesaler, which is a prerequisite for bidding on the second rollout. These principles include ensuring that the services offered in the second network will not cost more than those currently offered by DNB. In May last year, Putrajaya agreed to introduce a second 5G service provider to move towards a two-network model. Meanwhile, Fahmi highlighted that the ministry’s focus under the 2025 budget includes improving internet access in schools and higher education institutions. “We are prioritising the telecommunications sector to ensure that schools and higher learning institutions receive the best possible internet access.” He also noted the ministry’s commitment to the creative industry, citing the success of initiatives like the Film in Malaysia Incentive, which he believes has laid a strong foundation for growth in the creative sector. Deputy Communications Minister Teo Nie Ching previously stated on August 20 that the programme has attracted significant foreign investment and boosted film production activities within the country.–FMT

TikTok-owner ByteDance is tapping banks for a $9.5 billion loan that would be the biggest dollar-denominated corporate facility in Asia ex-Japan, two sources with knowledge of the matter said on Monday. Citigroup, Goldman Sachs and JPMorgan are the financing coordinators, which carry a tenor of three years and can be extended to up to five years, the sources, who did not want to be named because the discussions are confidential, said. Bloomberg News reported that the loan will be partly used to refinance an existing $5 billion dual-tranche facility.–REUTERS

HONG KONG: The private investment vehicle of Hong Kong billionaire Henry Cheng’s family has appointed one of his sons as co-chief executive officer, the latest development in the family’s closely-watched succession saga. Christopher Cheng Christopher Cheng will be in charge of North Asia investment for Chow Tai Fook Enterprises, according to a statement on Friday (Aug 30). The office also appointed Patrick Tsang – an in-law to the family – as the head of Americas, Australia and Europe. Gilbert Ho, co-CEO of infrastructure-to-insurance conglomerate NWS Holdings, will look after corporate functions and operations. Four of the elder Cheng’s children now lead key parts of the family’s sprawling business empire. Adrian is the CEO of real estate developer New World Development Co, Sonia serves as a joint vice-chairman for Chow Tai Fook Jewellery Group and Brian is co-CEO of NWS. Henry Cheng remains in charge of the family office and chairman of all three companies. The family has been embroiled in a succession saga following Henry Cheng’s public statement that he is still looking for an heir and that he may bring in outside talent. That has put Adrian in the spotlight, who was widely seen as the strongest candidate to take over the family’s business group. The elder Cheng said he has closely worked with the three new leaders of Chow Tai Fook Enterprises in different parts of the family business, and that the office strives to create a positive impact and drive results for its stakeholders and wider communities, according to the statement. –Bloomberg

KUALA LUMPUR: Without the materials known as “rare earth” and “critical minerals,” electric cars wouldn’t run, laptops wouldn’t boot up, solar panels and wind turbines wouldn’t generate power, and mobile phones wouldn’t make a single call. The shift to green energy is supercharging the demand for these critical minerals, presenting a significant opportunity for Malaysia, according to an analysis released today by IQI. Kashif Ansari, Co-Founder and Group CEO of IQI, explained, “Rare earths are so named because they are usually found only in low concentrations, making mining less viable. Additionally, they require extensive separation and purification to become usable.” A Trillion Ringgit Opportunity Ansari added, “The market for these materials is currently valued at RM1.4 trillion. That figure is already massive, but it’s just the beginning. By 2040, this market is expected to swell to RM3.4 trillion, driven by the increasing need for materials that power electric cars, wind turbines, and solar panels. “Malaysia is home to one of the largest critical mineral refining facilities in the world, operated by the Australian company Lynas. This plant is a testament to Malaysia’s growing influence in a world where green technology is becoming increasingly important. “You can see how much rare earth and critical minerals could contribute to Malaysia’s wealth when you consider that the Lynas plant alone has brought in RM3 billion in foreign direct investment, RM1.5 billion in exports, RM9.4 million in taxes paid, and RM65 million in wages paid to local workers. The average income of Lynas employees is four times higher than the local average in Pahang.” Why the Green Transition Can Make Malaysians Richer “For Malaysia, the trend represents an opportunity to build a stronger economy. The country’s rich reserves of critical minerals, combined with its strategic location and industrial strength, position it perfectly to capitalize on this growing demand. “Malaysia’s reserves of rare earth elements have the potential to create more high-paying jobs and increase export income, as companies around the world seek new suppliers. “For everyday Malaysians, this opportunity translates into real benefits. By expanding its role in processing and manufacturing these minerals, Malaysia can create new jobs, drive economic growth, and ensure the country remains competitive on the global stage. “Government initiatives like the New Industrial Master Plan 2030 are helping turn this promise into reality. Malaysia’s total mineral resources are valued at RM4.1 trillion, including RM745 billion worth of rare earths. The estimated value of Malaysia’s metallic minerals alone is RM1 trillion.” Risks to Avoid “Becoming a larger exporter of critical minerals also comes with risks, including the potential for environmental damage if the industry is not managed sustainably. However, with smart investments and a focus on sustainability, we believe Malaysia has the potential to help lead the global green energy revolution, creating a brighter and wealthier future for all its citizens.” Impact on Real Estate “As a real estate and technology company, Juwai IQI looks at the critical minerals opportunity through the lens of its impact on the real estate market. The critical minerals boom will have a significant impact on Malaysia’s real estate market, increasing demand for industrial space and land where mineral reserves are present, driving new residential and commercial development, and helping to push up property demand and the value of homes. “The increased need for industrial space is the most direct real estate impact. As Malaysia ramps up its role in refining and processing critical minerals, companies will require factories, warehouses, and logistics hubs. “This new mining and processing investment will also spur residential and commercial real estate development in key regions. We especially expect this to occur in Pahang, Perak, and Kedah, which have rich deposits of critical minerals. For example, the Lynas plant I mentioned is located in Pahang. “Nearly all homeowners will benefit as the regions involved in the critical minerals supply chain see their economies boom. This will create local wealth and boost incomes and opportunities nationwide by enriching the national accounts. “You can expect a direct impact on property values. When Malaysian families find they have more money in the bank, they will seek to buy bigger and more convenient homes.” Conclusion “In conclusion, we believe the critical minerals opportunity will drive real estate development and boost property values, providing a win for Malaysians. This is particularly advantageous for households in the B40 group, especially those who secure some of the high-paid jobs in this growing industry. They should see the biggest impact in terms of increasing household income and better housing affordability. “The opportunity for Malaysia to become a leader in the global green energy market is not just about national pride and sustainability. It’s about tangible benefits for every Malaysian. It means more jobs, better wages, and new industries that can drive economic growth for years to come. This is a chance for Malaysia to improve everyone’s future and leave a legacy of innovation, resilience, wealth, and sustainability.”

KUALA LUMPUR: Malaysia’s status as Southeast Asia’s fastest-growing data centre hub will not only spur the growth of the digital economy but also be a catalyst in the nation’s transition towards renewable energy (RE). Dr Jasrul Jamani Jamian, associate professor at Universiti Teknologi Malaysia’s Electrical Engineering Faculty, said the inflow of data centre players to Malaysia helps the government in optimising the country’s existing electricity generation capacity. At the same time, he said, it will be a driver in realising the government’s efforts towards an RE generation capacity target of 70% or 56 gigawatts in the energy sector by 2050. From 2021 to 2023, Malaysia approved investments worth RM114.7 billion in data centre and cloud services. It was also reported recently that Moody’s Ratings projected the power requirement for data centres in Malaysia to double to about 500 megawatts in the next two years. “It’s high time for power generation using natural resources such as coal and gas, especially those that have been operational for 25 to 30 years, to be replaced with RE, which is more efficient and environmentally friendly,” Jasrul Jamani said He said that in expanding electricity generation, there is a significant need to transition towards RE from low-efficiency operations. ”The government is already moving in that direction, such as through the implementation of the Fifth Large-Scale Solar (LSS5) programme currently and the upcoming LSS6,” he said. He noted that under the National Energy Transition Roadmap, with the high RE penetration, the country will require a large energy storage capability to ensure a stable RE dispatch. He said the development of a large-scale battery energy storage system (BESS) using state-of-the-art technology is in line with the rise in RE capacity. BESS, he said, will ensure that no energy supply disruption affects data centre operations. Jasrul Jamani said BESS will also help data centre operators reduce electricity bill costs by storing energy outside peak hours and using it during peak hours. “Therefore, the development of data centres in Malaysia is in tandem with national efforts to transition from conventional power generation to RE generation,” he said. He said that setting up more data centres in Malaysia will bring revenue gains for Tenaga Nasional Bhd (TNB) as the data centre industry requires a high and continuous supply of electricity. According to him, TNB’s system has excellent stability and capability level for meeting the needs of all consumers, including data centres, based on its projected power reserve margin of 28% to 36% in Peninsular Malaysia from 2024 to 2030. — Bernama