Kota Kinabalu: The imminent implementation of Sabah-Malaysia My Second Home (Sabah MM2H) programme will significantly increase Foreign Direct Investments (FDIs) into Sabah, especially in real estate and tourism sectors.
Sabah Housing and Real Estate Developers Association (Shareda) president Datuk Sr Chua Soon Ping said the Sabah MM2H would have a multiplier effect when the participants buy properties here.
It would stimulate the property market and economic spin-offs, would have a cascading effecta.
“I informed the Chief Minister that when everything goes as planned and with the conducive environment that we are giving investors, some 1,000 investors will put in RM1.5 million each into buying properties, luxuries and other goods in a year. Hence Sabah would see RM1.5 billion in FDIs annually.
“if this is equated to a spin-off of four times, the number becomes RM6 billion per year, considering around 80 per cent are expected to make the purchases in Kota Kinabalu.
“A major example is Taiwanese group, CSX Holdings Sdn Bhd, that expressed interest and commitment to purchasing 200 units throughout Kota Kinabalu. It signed an agreement to buy 40 units at Bay 21 condominium in Likas and 30 units of Sutera Bay,” he said.
Chua said this after Satate Industrial Development and Entrepreneurship Minister Phoong Jin Zhe witnessed the signing of Sale and Purchase agreement between Remajaya Sdn Bhd and CSX Holdings Sdn Bhd to buy 40 units of Bay Suites, recently.
Chua signed the agreement as the Remajaya Sdn Bhd Managing Director together with its architect Lo Su Ying while CSX Holdings Sdn Bhd Chairman Charles Tsao signed the agreement together with its managing director Anson Ng, its executive dorector Calvern Ng and another executive director Charis Lee.
From this move, he said an estimated 500 investors from Taiwan would come to Sabah in two years and at the same time increasing their participation in the Sabah MM2H.
“Most of the potential investors do not mind buying properties in hilly areas or the seafront but Chinese investors prefer the seafront.
“Koreans like to buy properties next or near golf courses which show variety in their tastes and preferences,” he said.
The State government has approved the SBH-MM2H programme in principle but yet to be implemented as the guidelines need to be approved by the State Cabinet. Nonetheless, some criteria have been agreed upon.
“When we talk about Sabah MM2H, there are three types –the Federal MM2H whereby the criteria set is very high. Second is Sarawak MM2H introduced in 2019 and third is the upcoming Sabah MM2H. According to the Chief Minister, the Sabah MM2H will have similar criteria as Sarawak which has been discussed in the last State Cabinet meeting.”
Charles said CSX Holdings Sdn Bhd, which was established at end 2019 and mainly engaged in investment activities, has a plan to package its property projects with the Malaysia My Second Home program in Sabah and attract investors from Taiwan.
He said the company has invested RM110 million in over 150 properties over the past two years.
“When Taiwanese investors purchase our package, we will help to apply for the MM2H visa and purchase properties in Sabah. We will also assist them in managing their properties.
Charles said his company aimed to purchase approximately 200 properties in Sabah this year and to create the largest short-term service platform in Sabah and attract more tourists here.
The company also aimed to attract 500 Taiwanese investors within the next two to three years, bringing in a total investment of about RM400 million.
