9 MIN READTop 9 states in Malaysia for an investor to consider in 2021

Being an investor with an upstanding investment strategy that can be both satisfying and lucrative. For example, as a prospective real estate owner, one can use several leverages such as paying a portion of the total cost upfront, paying off the balance, plus interest, as time goes by.

If you are looking for the perfect investment, here’s a look into the top 10 states in Malaysia for your consideration – ranked according to NAPIC’s data on consumers buying behaviour from the year 2020.

9. Melaka

Volume of Residential Property Transactions – 3,733 units

If you love travelling and wish to visit immerse into Malaysian history, Melaka is a quick fix since it has been described as a tourist destination.

What is more attractive about Melaka is the people and their rich ethnicity – communities blended into one rich culture full of diversity, welcoming everyone to be part of the diversification and live in peaceful co-existence. With the rich historical and cultural background from the Portuguese, Dutch and British rule, Melaka also has the most delicious and diverse food in Malaysia.

The tourism and manufacturing sectors are the two most important sectors in the state economy – with the state receiving as many as 17 million tourists in the last 5 years. Furthermore, when other states are worried about the all-time high unsold property, Melaka has one of the least unsold properties in Malaysia – with the average property price below RM200,000. 


8. Pahang

Volume of Residential Property Transactions – 4,029 units

Pahang, the largest state in Peninsular Malaysia, has an area of nearly 36,000 sq. km. Can you imagine the potential investments with such a sure area? With thinly populated and vast tracts of rain forests, pristine national parks, huge freshwater lakes, formidable mountains and refreshingly cool hill stations, Pahang is a dream for those who wish to live nearby to Mother Nature.

According to the Pahang State Development Corporation (PKNP), Pahang will soon become the leading agency to promote business and investment activities – aims are to attract new investments and investors to new growth areas in the state especially in the industrial and manufacturing sector.


With objectives such as promoting Pahang as a major attraction for investment in Malaysia, widen its diversification of the industrial activities and increase the contribution of the manufacturing sector – Pahang is ideal to investors who wish to venture into the 4.0 industry. 


7. Wilayah Persekutuan

Volume of Residential Property Transactions – 4,100 units

Malaysia’s economically and commercially vibrant metropolis, the capital city Kuala Lumpur, serves as the ideal hub for oil, gas & energy, engineering services, consumer products, technology, Industry 4.0 and more.


Today, from its humble beginnings as a tin-mining district, Wilayah Persekutuan r has grown to become one of the most vibrant and dynamic cities in the world – its status, attractive business environment, growing middle-class, well-developed infrastructure and skilled workforce make this city an obvious choice for the hundreds of multinational companies that have heeded the city’s call to investors.


Ranked against 120 other cities as the second most competitive global city in Southeast Asia, the state allows investors an easy and seamless business step up with the assistance of specialists who are ever ready to help ensure a smooth and expedited process.


6. Negeri Sembilan

Volume of Residential Property Transactions – 4,115 units

If you are a resident of Klang Valley, the option of living in its adjacent state Negeri Sembilan typically does not cross your mind. However, Negeri Sembilan has many hidden appeals, such as luxurious residential communities in serene settings, located only 60 minutes away from Klang Valley.

With Seremban as its district, current and future residents may enjoy wide-open spaces of greenery and lakes. It is also well-linked to Kuala Lumpur and the city’s airports KLIA and KLIA2 and Malacca, Putrajaya and Cyberjaya via the North-South LEKAS Highway and ELITE Highway.

According to MIDA, Negeri Sembilan recorded more than RM11 billion in manufacturing sector investments from 2015 to 2020 – involving 191 projects in all districts including Seremban, Tampin, Port Dickson Rembau.

Seremban adopts an open and investor-friendly policy by providing infrastructure facilities and incentives such as direct and indirect tax incentives. It allows the state opportunities to a rise in investments. It ensures employment and business opportunities are obtained and can be enjoyed by the people.


5. Penang

Volume of Residential Property Transactions – 4,293 units

Living on an island is both an adventure and a mystery to those who venture them – and the island of Penang certainly has more to offer to those willing to explore the island and all of its secrets.

Penang’s fun never ends – with venues such as the famous Batu Ferringhi, Malaysia’s first floating mosque, Penang Hill, and Penang Road, all serving as must-see destinations.

While you look for housing in Penang, you are offered a blissful mix of condos, bungalows, villas on the hillside, to apartments and luxurious condominiums by the beachfront. The island does have its fair share of incredible places to stay that occasionally comes equipped with an incredible view of the surrounding seascape.

As the Silicon Valley of the East, Penang is a popular destination among investors, providing opportunities for all in the value chain — from production, distribution, and technical know-how in the service sector.

Read more about why you should invest in Malaysian real estate;

4. Kedah

Volume of Residential Property Transactions – 4,928 units

One of the cheapest states to live in Malaysia, Kedah lows housing, electricity, and water costs, making it a top contender why many Malaysians are purchasing property, left and right. 


Located in the northern part the of Peninsular Malaysia, Kedah is famed for its paddy fields, stretching over the horizon like a green carpet. For lovers of history, Kedah is surrounded by it – with records dating back to the 5th Century, Kedah was once a prosperous centre for traders in the early days, especially in India and China. This is reflected in the numerous ruined-temple sites and artefacts recovered in Kedah.


Today, modernisation proceeds at a slow pace and implementing the people of Kedah with a peaceful, laid-back mentality. Yet, Kedah is fast developing its manufacturing industry, with numerous industrial parks being built to sustain this growth – allowing many investments surrounding the green technology bill such as the RM 1.6 billion investment deal from China-based Zhejiang Element Holding in the green technology paper industry in Kedah.


According to the Malaysian Investment Development Authority (MIDA), the state of Kedah has attracted RM7.8 billions in approved investments in the manufacturing sector between January and September of 2020.


3. Perak

Volume of Residential Property Transactions – 9,573 units

In Malaysia’s local language, Perak means ‘silver’ – the colour of tin. Perak received its names from being the largest tin producers globally, from the 1890s to the 1970s. It was tin mining and its related industries of the foundry, machinery, and metalworking that laid the foundation of Perak’s today’s industrial profile.

Today, Perak is producing a more diversified industrial portfolio, including manufacturing electrical and electronics products, non-metallic mineral products, shipbuilding, machinery and foundry, automotive and transport equipment, and oil and gas fabrication industries.

Furthermore, the city of Ipoh is ranked as one of the 9 places to retire in the world. These retires claim its fresh air, clean water, and relaxing lifestyle to improve their quality of life and promote longevity.


2. Johor

Volume of Residential Property Transactions – 10, 193 units

Due to its proximity, Johor is connected to three of the world’s major economies; China, India and Japan, apart from having access to more than three billion population from various cities in South East Asia and parts of Asia Pacific.


With three major seaports; Pasir Gudang Port, Port of Tanjung Pelepas (PTP), Tanjung Langsat Port is accessible by two international airports; Senai Airport and Changi Airport – industries such as manufacturing and exporting will see it as a suitable location to expand its horizons. 


All these have contributed to the fact that Johor is the only state home to two out of Malaysia’s five economic corridors: Iskandar Malaysia and the East Coast Economic Region. Since 2010, Johor has had the highest investment recipient in the country due to its very stable and pro-business government who is constantly looking to partner with investors to bring economic development to the state.


Over the years, its proximity to Singapore has also allowed it to develop strong economic linkages, particularly in the sectors of electrical and electronics, food and agro-processing, and logistics. 


1. Selangor

Volume of Residential Property Transactions – 17,178 units

And here we are, with the number one spot for investors in 2021 – welcome to Selangor.


Malaysia’s most developed and progressive state, Selangor is the country’s primary port of entry and strategically located around the capital city, Kuala Lumpur.

As Malaysia’s largest economy, Selangor enjoys a highly developed infrastructure for major industry clusters. It is a well‐established investment haven backed by excellent state government support and an advanced commercial ecosystem. As budding and seasoned investors, you will get to know the highly skilled and innovative knowledge‐workforce as well as an attractive cosmopolitan living standard.


Selangor is a beacon of abundance and prosperity.

Here at IQI, we provide many services such as purchasing the perfect property, aligned with the budget that suits your needs and even find the perfect investment based on your needs.

With your burning questions, share your contact, and we’ll provide a free consultation!

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