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MALAYSIA’S EXCLUSIVE REAL ESTATE INVESTMENT PREVIEW HELD from 28 to 29 MAY 2008 at
International Oil & Gas Club, MOSCOW - RUSSIA

Universe Expo (M) Sdn Bhd and International Oil & Gas Club (Russia) hosted the 1st Malaysia’s Real Estate Investment Preview from 28 to 29 at Gostiny Dvor, International Oil & Gas Club located at a prestigious area near Kremlin, the Russian Federation administration office. The venue is walking distance around the famous tourism spot such as Red Square, famous theatre, state historical museum and Moscow’s luxurious shopping mall GUM. His excellency Dato’ Mohammad Khalis, the Malaysian ambassador to the Russian Federation launched the occasion with many invited VIPs and members of the exclusive International Oil & Gas club based in Moscow. Mrs Merkulova Nelli, the President of International Oil & Gas Club, Ms Jessy Leong, Chief Operating Officer of Universe Expo, Mrs Merkulova Natalia, General Director of International Oil & Gas Club, Mr Alexander Vorobyev, Vice President of International Oil & Gas Club, Mr Azman Md Yusof, Malaysian Trade Commissioner along with hostesses in Malaysian traditional costumes welcomed the honourable Malaysian Ambassador with “kompang” ( malay traditional percussions). Renowned artists from the famous Bolshoy Theatre made hilarious performance from opera, classic, jazz and modern musical performances during the launch of the property preview.

His Excellency Dato’ Mohamad Khalis, Malaysian Ambassador to the Russian Federation launched Malaysia’s exclusive real estate preview at Int’l Oil & Gas Club.

Mrs. Merkulova Nelli, President of Int’l Oil & Gas Club welcome Malaysian Ambassador to Russia Federation and invited VIP guests and club members.

There were several renowned developers from Malaysia participated in this real estate investment preview, presenting various superior property developments ranging from high-rise & low-rise residences, mix-commercial developments in the business hub of Kuala Lumpur, waterfront villas, grade A commercial properties including the exotic Kuraman island located in the eastern side of Malaysia. The estimated value of these prime properties was accorded at more than Euro 500 million. Universe Expo aimed at institutional and corporate investors for the commercial properties while targeted elite high net worth individuals to purchase residence properties under the Malaysia My Second Home Program.

More than 100 invited VIP guests and members of this exclusive oil & gas club attended the launch with welcoming speech by the President of Oil & Gas club, followed by speech from his excellency Dato’ Mohammad Khalis addressing remarks on statistics of bilateral trade between Malaysia and Russia as well as enlighthening the vast market potential of Russia: giant of a new economic world order.

Russia is also considered well ahead of most other resource-rich countries in its economic development, with a long tradition of education, science, and industry. In the first half of 2007, foreign investment in the Russian economy doubled year-on-year, reaching $60.3 billion. In 2000 total investment in fixed assets was $40 billion, giving growth of 300% by 2006 when it reached $120 billion. Oil export earnings have allowed Russia to increase its foreign reserves from $12 billion in 1999 to some $470 billion at the end of 2007, the third largest reserves in the world. GDP (PPP) stood at $1.746 trillion in 2006 with an estimated GDP growth rate at 7%.

In 2006 commercial real estate investment volumes in Russia reached 3.4 billion euros, setting an all-time high market record. While this is nearly 10 times more than in 2005, this figure is still behind Poland with 5 billion euros and well behind Western European markets like Germany (50 billion euros) or the UK (80 billion euros), suggesting room for significant growth for years to come.
The property investment market in Russia continues to maintain a very strong domestic component. Local investors accounted for at least 44% of investment transactions by volume in 2006. Similar figures for Poland, the Czech Republic and Hungary and were a mere 2%, 6% and 8% respectively. Western European markets demonstrated a distinctly different composition, with domestic capital taking a healthy market share of 18%, 23% and 48% (Germany, France and UK respectively). As the accumulation of capital, global shift in wealth, and growing sophistication of the Russian financial sector continue, we expect Russian investors to hold on to a sizeable market share of investment even as the Russian market becomes increasingly exposed to western institutional capital.