Question

Criticize the limited number of Islamic real estate investment trust (REITs) in Malaysia amid the unaffordability of Muslims to own residential or commercial properties physical assets.

Answer 1

Problem Statement
M-REITs are considered as one of the more up to date venture instruments presented in Malaysia.
Its market is viewed as generally little contrasted with Singapore, Hong Kong, and Taiwan. For as
long as three years, the current M-REITs advertise has seen developing an interest to retail
investors and investors who have a low-risk appetite (Rozali and Hamzah, 2006; Ibrahim and Ong,
2008). Regardless of that, advertise assessment, particularly from singular financial specialists is
still decently mellow even with constant postings in the Bursa Malaysia base. Most investigators

simply tie their studies on MREITs earlier and until 2005 the studies fundamentally emphasis just
on the implementation of the hidden four Land Property Trusts (LPT), while overlooking the other
M-REITs recorded along these lines (Hamzah, Rozali and Tahir, 2010; Hwa and Rahman, 2007;
Newell et al., 2002; Ooi, Newell, and Sing, 2006; Sing, Ho, and Mak, 2002).
It was found that there are limited studies are being driven for all the 14 M-REITs recorded.
Interestingly with past studies that for the most part underlined on the attribution of the infamous
Asian cash related crisis in 1997, this investigation will preferably prepare to highlight the later
externalities that impacted the overall financial market, for instance:
i. Inflating of overall property ascends in the midst of 2004 to 2007 in view of low advance
charge levels in the US
ii. The coming about outbreak of the U.S. subprime contract ascend in 2007
iii. Euro credit crunch in 2008
iv. Collapse of Dubai property section in 2009
v. Chinese Stock Market Crash in 2015
Each one of these events that occur in the midst of the era of 2001 to 2010 sent a tidal of significant
worth offer down and made huge insecurity in the overall fiscal market. M-REITs do give certain
perceived great conditions as a hypothesis stood out from either qualities or bonds. It presents cut
down risk than the esteem publicizes while yielding superior to expected return than that of the
security (Rozali and Hamzah, 2006; Ibrahim and Ong, 2008). Thus, it is recommended that M-
REITs should be used to separate portfolio hypotheses. Nevertheless, the ability of M-REITs for
fulfilling sensible portfolio assortment still decently vague for most fund managers as the
introduction given for this sort of wonder is to some degree lacking. The thought of M-REITs in
most fund managers' portfolio still by and large bound. Likewise, given that M-REITs are
benefited yield based wander, which is more imperative than capital appreciation; extending
worldwide and private swelling levels may have given the motivation to feel vague about M-REITs
as beneficial theories (Rozali and Hamzah, 2006; Ibrahim and Ong, 2008).