General & Misc

Budget 2019 Measures will kick-start Housing Market in 2019

Date: 08 November 2018; Type: Industry Updates; Source: Bernama

KUALA LUMPUR, Nov 8 (Bernama) - The exemptions and initiatives, in particular the waiver of stamp duty on transfer instruments and loan agreements for residential homes, announced in the 2019 Budget are expected to kick-start the housing market moving into 2019 and beyond, says Knight Frank Malaysia Sdn Bhd.

Managing Director Sarkunan Subramaniam said first-time homebuyers and the lower income groups were among the big beneficiaries of the budget.

He said among the measures benefiting first-time homebuyers would be the government’s approval for private-sector driven property crowdfunding platforms as an alternative source of financing.

“The availability of the crowdfunding platforms will make property more accessible for first-time homebuyers who may not easily qualify for bank loans.

“However, there is concern that this may fuel overly lenient lending policies, potentially leading to a future subprime situation, a lesson drawn from the United States where homebuyers with inadequate financial capacities were able to secure mortgages,” Sarkunan said.

Therefore, he urged the Securities Commission to ensure fund managers would be stringent when evaluating borrowers in the entire ecosystem of property crowdfunding platforms.

“There is also a need to prevent fund managers who might be tempted to quickly build portfolios by lending to borrowers with compromised credibility and possibly disrupting the platforms,” Sarkunan said.

He also said the two key budget announcements that directly impacted the property sector would be the review of rates for real property gains tax and stamp duty.

“Although the review of property taxes will increase the disposal and transfer costs, the impact towards the property market was insignificant.

“As an example, the stamp duty on the transfer of property valued at RM2 million will be RM54,000 prior to the revised rate and RM64,000 after the revised rate. For first-time home buyers purchasing a RM300,000 property, there will be savings of about RM5,000 on the stamp duty on the instrument of transfer,” Sarkunan said.

He said on the supply side, the Real Estate Housing Developers Association (Rehda) announced its commitment to reduce house prices by 10 per cent for new projects that were not subjected to price control following the Sales and Services Tax exemption on construction services and building material costs.

“While the commitment by Rehda members is neither binding nor enforceable but in the spirit of ‘Malaysia Baru’, they (the members) are likely to support the government’s aspiration to promote the National Home Ownership Campaign,” Sakurnan added.

MY Bernama

Asean LIP works with Bernama to bring you the latest Malaysian legal news. Bernama is the national news agency of Malaysia. You shall not reproduce the above/ attached materials in whole or in part without the prior written consent of the Publishers and/or Bernama. Neither the Publishers nor Bernama will be liable for any loss, injury, claim, liability, or damage caused directly, indirectly or incidentally to errors in or omissions from the above/ attached materials. The Publishers and Bernama also disclaim and exclude all liabilities in respect of anything done or omitted to be done in reliance upon the whole or any part of the above/attached materials. The access to, and the use of, Asean LIP and contents herein are subject to the Terms of Use.

Get ASEAN LAW ALERT

Legal updates by e-mail. It's Free.

INDUSTRY UPDATES

Corruption: Court allows Tengku Adnan Bail of RM1 Million

KUALA LUMPUR, Nov 15 (Bernama) - Former Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor who was charged in the Sessions Court here today with two counts of corruption and an alternative charge with accepting bribes of RM3 million in connection with an approval given to a company to raise the ratio plot for development at Jalan Semarak here in 2013 was allowed bail of RM1 million.

Read More

INDUSTRY UPDATES

64,632 Malaysians declared Bankrupt over last Five Years

KUALA LUMPUR, Nov 15 (Bernama) - The Malaysia Department of Insolvency says 64,632 Malaysians aged between 18 and 44 have been declared bankrupt over the last five years.

Read More

INDUSTRY UPDATES

SMEs should use funding from Cooperatives for Adoption of Industry 4.0

KUALA LUMPUR, Nov 15 (Bernama) - Small and medium enterprises (SMEs) can use funding from cooperatives to scale up their business in adopting the Fourth Industrial Revolution (Industry 4.0) technology, Minister of Entrepreneur Development, Datuk Seri Mohd Redzuan Yusof said.

Read More

INDUSTRY UPDATES

92,682 Businesses have registered under SST - Lim

KUALA LUMPUR, Nov 15 (Bernama) - A total of 92,682 businesses have registered under the Sales and Services Tax (SST) regime as of Oct 23, the Dewan Rakyat heard today.

Read More

INDUSTRY UPDATES

Ministers' Pay Cut to remain in Force - Guan Eng

KUALA LUMPUR, Nov 14 (Bernama) - The 10 per cent salary cut for all Cabinet ministers will remain in force, Finance Minister Lim Guan Eng said today.

Read More

INDUSTRY UPDATES

UM bags 13th LAWASIA International Moot Competition

KUALA LUMPUR, Nov 13 (Bernama) - A group of University of Malaya (UM) Bachelor of Law (LLB) students emerged as International Champion at the 13th LAWASIA International Moot Competition held early this month.

Read More

INDUSTRY UPDATES

Time for BNM to reimpose Financing Quota - HBA

KUALA LUMPUR, Nov 13 (Bernama) - It is time for Bank Negara Malaysia (BNM) to reimpose financing quota that the banks need to adhere to in order to assist first-time home buyers, said the National House Buyers Association (HBA).

Read More

INDUSTRY UPDATES

Death of RMN Personnel: Court orders another Probe by Inquiry Board

KUALA LUMPUR, Nov 13 (Bernama) - The High Court here today ordered the Malaysian Armed Forces Council to set up a board of inquiry to determine whether Royal Malaysian Navy (RMN) seaman Muhammad Lailaltuiman Mohd Sukri, who died at a detention room in Sungai Wangi, Sitiawan, was mentally and physically abused while he was attached with KD LEKIR.

Read More

INDUSTRY UPDATES

Need to address, curb questioning of Constitution - Sultan Sharafuddin

SHAH ALAM, Nov 13 (Bernama) - The act of a certain group in questioning the sanctity of Islam, the special rights of the Malays and Bumiputeras, the national language, and the function and position of the Malay Rulers enshrined in the Federal Constitution need to be immediately addressed and curbed.

Read More

INDUSTRY UPDATES

Anwar's Challenge over Implementation of NSC Act remitted to High Court

PUTRAJAYA, Nov 13 (Bernama) - The Federal Court today remitted PKR president-elect Datuk Seri Anwar Ibrahim's legal challenge over the implementation of the National Security Council Act (NSC) 2016 back to the High Court for hearing.

Read More

INDUSTRY UPDATES

MATTA appeals for Temporary Waiver of Visa Fees for Chinese and Indian Tourists

KUALA LUMPUR, Nov 13 (Bernama) - The Malaysian Association of Tour and Travel Agents (MATTA) is appealing for a temporary waiver of visa fees for tourists from China and India, in order to boost visitor arrivals to Malaysia.

Read More

INDUSTRY UPDATES

SME Non-performing Loans in Malaysia among World's Highest

JOHOR BAHRU, Nov 13 (Bernama) - Malaysia’s Non-Performing Loans (NPLs) among Small and Medium Enterprise (SME) entrepreneurs are among the world’s highest, said Entrepreneur Development Minister Datuk Seri Mohd Redzuan Yusof.

Read More

INDUSTRY UPDATES

IRB puts 79,786 Tax Evaders on Notice

KUALA LUMPUR, Nov 13 (Bernama) - The Inland Revenue Board (IRB) has identified 79,786 individuals, companies, organisations, cooperatives and more with property and extraordinary wealth who have yet to pay tax.

Read More

INDUSTRY UPDATES

Government urged to review Scheduled Salary Deductions for PTPTN Loanees

KUALA LUMPUR, Nov 12 (Bernama) - A Pakatan Harapan MP today urged the government to review the scheduled salary deductions for National Higher Education Fund Corporation (PTPTN) loanees who earned more than RM1,000 a month.

Read More

INDUSTRY UPDATES

EPF extends Mohamad Nasir's term to December 31, 2019

KUALA LUMPUR, Nov 12 (Bernama) - The Employees Provident Fund (EPF), with the approval from the Ministry of Finance, has agreed to extend Datuk Mohamad Nasir Ab Latif’s term as Deputy Chief Executive Officer (Investment) until Dec 31, 2019.

Read More