The evolving view of real estate & property valuation in Malaysia: A professional perspective

In Malaysia, the Valuation and Advisory profession plays a pivotal role in the real estate investment and development sectors. As the industry adapts to global trends and local demands, the integration of international standards, such as those provided by the Royal Institution of Chartered Surveyors (RICS), has gained prominence. This article explores the views of Malaysian professionals, like Justin Chee, on the role of RICS qualifications, standards, and the profession’s future outlook.

The significance of RICS in Malaysia

RICS is recognised worldwide for its rigorous standards and professional qualifications. In Malaysia, this credential is seen as a hallmark of global recognition, especially among international clients. Justin, a seasoned professional with over 18 years in real estate valuation and advisory, notes that joining RICS has provided him with a competitive edge. As a Registered Valuer (RICS), he values the continuous professional development (CPD) support and the credibility that RICS brings to valuation reports and proposals.

Integration of RICS standards

Malaysian practitioners have embraced RICS standards like the Red Book and specific guidance notes for niche and emerging asset class sectors, such as data centers and development land valuations. These standards enhance the depth and accuracy of valuation reports, particularly in emerging areas like ESG (Environmental, Social, and Governance) compliance. This global framework ensures Malaysian professionals meet international expectations while adhering to local regulatory requirements.

However, local licensing remains essential for practicing valuation in Malaysia, with the Board of Valuers, Appraisers, Estate Agents, and Property Managers Malaysia (BOVAEP) providing complementary oversight. Many industry professionals, including Justin, emphasise the importance of holding both local and international credentials to bridge global expertise with localized knowledge.

Challenges and industry trends

The Valuation profession in Malaysia faces challenges like keeping up with evolving knowledge requirements, such as ESG reporting, adoption of proper and correct methodologies and valuation bases and incorporating new technological tools. RICS addresses these challenges by providing frequent updates, guidance notes, audits, and training opportunities, ensuring practitioners remain current with international best practices and professional standards.

Another key trend is the increasing importance of sustainability and ethical practices in real estate. Malaysian Valuation professionals with RICS qualifications are better positioned to navigate these demands, enhancing their ability to deliver sustainable solutions in line with global standards.

Professional development and organisational Support

Organisations in Malaysia recognise the value of RICS qualifications and actively support their teams in achieving this benchmark. Justin highlights that his company, Knight Frank Malaysia, sponsors CPD training, event participation, and even exam leaves, ensuring staff stay competitive. This commitment underscores the industry's recognition of RICS as a pathway to professional excellence and client trust.

The future outlook

The demand for RICS-qualified professionals is expected to grow, particularly among international clients seeking consistency and credibility in valuation and advisory services. Over the next decade, RICS is likely to play an increasingly vital role in standardising practices across Southeast Asia, positioning Malaysian professionals at the forefront of global real estate and construction trends.

Advice for aspiring professionals

For aspiring Valuers in Malaysia, obtaining RICS qualifications is more than a professional milestone; it is a gateway to international opportunities. Justin advises professionals to aim for RICS membership and incorporate its standards into their practice, as it builds trust and enhances recognition in the industry and gives confidence to not only international clients, but also local clients.

By integrating RICS standards with local expertise, Malaysia’s Valuation professionals can lead the way in setting benchmarks for quality and innovation in real estate advisory consultancy work.

RICS Valuer Registration Scheme

The Valuer Registration Scheme is a risk monitoring and quality assurance programme for valuers which checks compliance with the RICS Valuation – Global Standards (‘Red Book’). The VRS aims to ensure high standards in property valuation practices by providing a consistent, accountable and transparent framework for valuers, which in turn fosters public trust and confidence in valuations by ensuring that registered valuers meet stringent professional and ethical standards. In order to monitor compliance with the standards and rules, specialist, qualified reviewers from RICS engage with registered professionals and firms, to review their materials. These regulatory reviews by RICS offer opportunities for professional development, enhance credibility and reputation, mitigate risks, instil client confidence, facilitate collaboration, and ensure compliance with RICS standards and regulations.

This view of the profession highlights the growing significance of international standards like RICS in shaping Malaysia’s real estate landscape, fostering a blend of local insights and global best practices for a sustainable future.