(Yicai Global) Nov. 21 -- As China's efforts to restrict capital outflow have led to an excessive supply of premium real estate in Malaysia, that country's government has stopped granting licenses for four types of properties.

The cabinet accepted advice from the central bank and decided to suspend the issuance of licenses for shopping malls, office buildings, service apartments and luxury apartments worth more than USD240,000 (RM1 million), enabling developers to sell available properties, said Johari Abdul Ghani, Malaysia's second finance minister. The government will then review its strategy on awarding licenses to prevent it from hindering the country's economic development, Lianhe Zaobao reported.

As China restricted outflow of funds and banks tightened lending, many properties valued at over RM1 million have remained unsold, said Master Builders Association Malaysia President Matthew Tee.

Large Chinese companies and major investors have channeled funds abroad over concerns about China's economic slowdown while seeking a higher return on investment in international markets in recent years. In hopes of bolstering its own economy, China started to rein in the outflow of funds from last year. This has curbed Chinese enthusiasm about buying real estate overseas.