The development and rationale of sustainable and responsible property investment in Malaysia: a modified institutional framework

This thesis examines within the institutional framework settings how the concept of Sustainable and Responsible Property Investment (SRPI) has developed and to the extent SRPI has been adopted in a developing country, namely Malaysia. The question of Sustainable and Responsible Property Investment (SRPI) interpretation is important in this context given that developing countries represent the most rapidly expanding economies and most lucrative markets for property investment. Specifically the thesis examines the understandings of SRPI and the concept link with SRI, and the drivers and barriers to SRPI practice. Specifically, the thesis investigates how particular Malaysian Property Investment organisations (MPIOs) have interpreted the concept of SRPI, and whether the overall concept of SRPI has taken similar or different form than the practice in developed market. The study used a mixed-method approach. It uses triangulation of data collection methods and multiple techniques including content analysis and Delphi technique. The study used a modified institutional framework to aid in explaining, interpreting and understanding the divergence/convergence of SRPI in the developing country context. Content analysis of selected public listed property investment organisations in Malaysia i.e. real estate investment trusts (REITS), property companies and institutional investor reports from 2008 to 2011 proceeded through line-by-line analysis and coding according to inductively generated categories. The results from content analysis revealed a narrow representation of SRPI in the MPIOs reports. Despite the requirement by the Bursa Malaysia to report on CSR and sustainability activities, there were minimal disclosures on environmental and social impacts caused by their property management and investment activities, on most reports shows emphasis of MPIO's on philanthropic activities. The Delphi study aims to explore, examine and build on the views of experts and influential people in SRPI. It was also felt necessary to combine local expertise and experts from developed countries. Overall, SRPI in Malaysia takes different form than SRPI in countries where is SRPI mainstreamed. The study points in the direction of SRPI ‟cross-vergence”, whereby global convergence and local divergence forces are interacting synergistically. The National and Cultural religious value in particular are two strong elements supporting the drivers of divergence of SRPI. Through the rigorous exploration this thesis contributes to the further understanding of sustainable and responsible investment and the drivers. The proposed framework has provided the principles, whereas the empirical work translated the principles into practice. The results of the thesis contribute to the literature by providing new evidence on the drivers of SRPI in emerging market. These findings would be of use to property investors and other actors in the industry, including fund manager.