Real Estate: A Good InvestmentSarena Cheah

30th April 2016

Asia Financial Crisis

Global Financial Crisis

Soft Economic Outlook• Global uncertainty• Tightening of lending

guidelines by banks• GST implementation

1997 vs. 1998: 23%5 years CAGR: 9.96%

2008 vs. 2009: 8%5 years CAGR: 7.79%

2014 vs. 2015: 2%5 years CAGR: 12.10%

Malaysian property and its economic cycles the past 25 years…

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as breach of copyright.2

22 April 2016

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as breach of copyright.3

Are there any opportunities?

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as breach of copyright.4

60.0

56.9 61.6

77.1 88.3

81.0

107.4

137.8 142.8

152.4 163.0

149.9

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

Malaysia Total Value Transaction (RM bil)

Moving average 9% (3 years)

2015 was a year of adjustment for the Malaysian property market

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as breach of copyright.5

Source: NAPIC (3 years moving average – 2004-2007)

Total NPL has been on a downward trend from 2010 to 2015, similarly for residential property loan

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as breach of copyright.6

Source: Bank Negara Malaysia

34,785

28,669 29,692

26,996

22,520 22,699 22,161 23,103

10,738 8,926

7,724 6,434 5,661 5,272 5,012 5,030

2,698 1,913 1,857 1,398 1,281 1,162 1,335 1,786 -

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15

Non Performing Loans (RM' mil)

Total NPL Purchase of residential property

Purchase of non-residential property

5.6%

4.2%

3.2%

2.4%

1.9%

1.5%1.3%

1.2%

4.0%

2.6%

2.0%

1.3%1.0%

0.8% 0.7%0.9%

4.8%

3.7%3.4%

2.7%

2.0%1.9%

1.7% 1.6%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15

NPL to Total Loans Ratio

Purchase of residential property Purchase of non-residential property

Total loans

5 reasons to invest in real estate 1 2 3 4 5

Maslow’s hierarchy of needs; we all want a place to call home.

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as breach of copyright.7

5 reasons to invest in real estate 1 2 3 4 5

Property, being an important contributor to GDP, has proven to be a resilient investment class.

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as breach of copyright.8

Source: Bank Negara Malaysia & Department of Statistics

5 reasons to invest in real estate 1 2 3 4 5

Real estate, in the right locations, gives the greatest return for leverage.

ACCESSIBILITY

INTEGRATED DEVELOPMENT

INFRASTRUCTURE

CONNECTIVITY

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as breach of copyright.9

5 reasons to invest in real estate 1 2 3 4 5

We can get creative and innovative with real estate.

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as breach of copyright.10

5 reasons to invest in real estate 1 2 3 4 5

There are pockets of opportunities.

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as breach of copyright.11

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as breach of copyright.12