Government restrictions hampering developments in Malaysia

Government restrictions on foreign workers could have a large impact on the number of new projects being built in Malaysia, it has been claimed.

According to the Star Property, the country's FIABCI president Datuk Richard Fong warned that rules preventing foreign workers entering the country could have a negative effect on developers.

"We have already seen the effect of tightening the labour market five years ago when workers were sent home on an amnesty programme. We will have the same problem again," the news provider reported him as saying.

"When the workers finally returned, we had to retrain them because they were unskilled. The workers returned but the issue that cropped up was quality, which in turn led to high rates of defects in the properties."

The Malaysian property market could be set to benefit from the economic recovery in Asia, Property Abroad recently suggested.

A growing tourism market and strengthening economy are likely to be beneficial to the country's real estate sector.