Malaysia REITs are companies that own and operate income-producing real estate properties. In Malaysia, REITs have become increasingly popular over the years, offering investors the opportunity to invest in a diversified portfolio of real estate assets across different sectors, including commercial, industrial, and residential properties.
In this article, we will provide you with a comprehensive guide to Malaysia REITs, including their benefits, risks, and how to invest in them.
Table of Contents
List of Malaysia REITs by Market Capitalization and Dividend Yield
Malaysia REITs Dividend and Payout Ratio
How to Invest in REITs in Malaysia
There are three primary ways to invest in Malaysia REITs:
- Purchase shares of companies directly on the Bursa Malaysia using a broker.
- Purchase shares of ETFs that hold Sweden real estate companies.
- Buy into a fund (hedge fund) that invests in real estate.
History of REITs in Malaysia
REITs were introduced in Malaysia in 2005 with the listing of the Axis-REIT. Since then, the REIT market in Malaysia has grown rapidly, with the total market capitalization of Malaysia REITs reaching RM 33 billion in 2021. There are currently 18 listed REITs in Malaysia, with a diverse range of real estate assets, including commercial, industrial, and residential properties.
How are Malaysia REIT Dividends Taxed at the Shareholder?
Dividends paid out by Malaysia REITs are generally subject to income tax at the shareholder level. However, the tax treatment may differ depending on whether the shareholder is a resident or non-resident of Malaysia.
Resident shareholders are subject to income tax on their worldwide income, including REIT dividends. The REIT dividends are taxed at the shareholder’s marginal tax rate, which ranges from 0% to 30% depending on the amount of income earned.
Non-resident shareholders, on the other hand, are subject to withholding tax on their REIT dividends. The withholding tax rate is generally 10%, but it may be reduced to a lower rate under a tax treaty between Malaysia and the shareholder’s home country.
For example, under the Malaysia-Singapore tax treaty, the withholding tax rate on REIT dividends is reduced to 5%. Non-resident shareholders should review the tax treaty between Malaysia and their home country to determine whether they are eligible for a reduced withholding tax rate.
Malaysia REITs Frequently Asked Questions
What is the total market cap of all REITs in Malaysia?
The total is Column with ID 10 is not found in table with ID 9! MYR
How much REITs should be in a Retirement Portfolio?
It is difficult to say what percentage should be in a retirement portfolios as this will vary depending on the specific goals and risk tolerance of the investor.
How are REITs Taxed in Malaysia?
Real Estate Investment Trusts (REITs) in Malaysia must distribute at least 90% of their income to share holders.
Are REITs Tax Free?
REITs are not tax free unless they are held in an account or trust that is structured in a way that allows them to be tax free or tax differed. Please consult with your financial advisor for more information.