Leong: We applaud the government’s measure in continuing with the exemption of stamp duty for first home ownership with full exemption on properties worth below RM500,000, and 75% of stamp duty on the sales and purchase agreements of properties priced between RM500,001 to RM1mil.
Tan Sri Leong Hoy Kum, founder and group managing director of Mah Sing Group Bhd
Mah Sing Group Bhd applauds the government's expansionary budget to stimulate the economy by allocating the largest ever budget allocation of RM388.1bil.
We are glad that the Government is confident that Malaysia’s GDP is expected to grow by 4.5% in 2023, as the property development industry is highly dependent on the demand on domestic consumption.
The government aims to improve and evolve Malaysia by emphasising on the importance of integrating the human and economic components.
Budget 2023 revolves around 3 main objectives: reinforcing the momentum of economic recovery, strengthening economic resilience, and implementing comprehensive reforms for the Rakyat’s well-being.
We applaud the government’s measure in continuing with the exemption of stamp duty for first home ownership with full exemption on properties worth below RM500,000, and 75% of stamp duty on the sales and purchase agreements of properties priced between RM500,001 to RM1mil.
For instance, a 75% exemption on an RM750,000 property purchase will save the buyer up to RM15,000. This will pique the interest of middle-to-upper income first time home buyers as well as those who are looking to upgrade their property.
We also appreciate the government's announcement of lowering the cost of stamp duty for the transfer of property through love affection between parents and children, grandparents and grandchildren; it is proposed that duty stamp on instruments of transfer of property be fully exempted, with the exemption limited to the first RM1 million of the property's value. The remaining balance of the property's value is subject to ad valorem duty and receives a 50% reduction in stamp duty. This stamp duty treatment is only applicable to Malaysian citizens.
We foresee that the M40 group will benefit from the announced measures such as the reduction of personal tax rate by 2% for Malaysians earning between RM35,000 to RM100,000 annually. In addition to making Malaysia’s labour market more appealing, it will also increase Rakyat’s disposable income, enabling them to invest in value-accretive assets like properties.
Another encouraging measure is that the Syarikat Jaminan Kredit Perumahan Berhad (SJKP) will be guaranteeing loans worth up to RM5billion for the benefit of the 20,000 required borrowers. This will make home ownership more accessible to first-time buyers and individuals without a steady income, such as gig and freelance workers, independent business owners, small traders, and entrepreneurs.
Mah Sing Group applauds the government's plan to extend the incentive period for Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) until 31 December 2025 by increasing the incentive period for eligible green activities from 3 to 5 years. The green technology incentive was first introduced in 2014, and we are pleased to see how the country is moving towards a more ecologically responsible approach to living.
Mah Sing’s corporate responsibility strategic partner, Mah Sing Foundation (MSF) also appreciates the comprehensive initiatives tabled by the government aimed at assisting B40 communities as well as children, our future generations.
MSF supports the Government’s initiative to ensure proper nutrition and cognitive development among school students by allocating RM777million for the Rancangan Makanan Tambahan (RMT) feeding programme.
Furthermore, the government has set aside RM2.3billion for school upgrades, maintenance, and the renovation of dilapidated school buildings and infrastructure, particularly in Sabah and Sarawak.
This aligns with MSF's vision of 'Reinventing Hope and Creating Long-Term Change in Children's Lives,' as conducive and well-conditioned learning environments can have a direct impact on student performance and allow children in rural communities to access quality education.
We applaud the government's initiative to equip schools with special needs students with disabled-friendly facilities, which will create a more inclusive environment for students with special needs.
MSF also applauds the government's RM80million allocations in the Skim Peduli Kesihatan (PEKA B40), which will provide affordable and accessible healthcare services to the B40 communities.
We also commend the government for allocating RM1.2billion to renovate dilapidated clinics and schools. This will help to improve the health of the B40 communities by providing much-needed medical care and treatment.
MSF applauds the Malaysian Government's initiative to enable poor communities to increase their income. The allocation of RM750mil for the Inisiatif Pendapatan Rakyat, as well as the continuation of financial assistance through the Sumbangan Tunai Rahmah, will help to alleviate the financial burden on the B40 communities.
Moreover, the additional RM600 in the form of food aid and vouchers under the Sumbangan Tunai Rahmah for hardcore poor households is a timely and necessary intervention by the government.
These initiatives demonstrate the government's commitment to addressing the socio-economic challenges faced by the B40 communities, and MSF supports these efforts towards building a more equitable and inclusive society.
Datuk NK Tong, president of Rehda Malaysia
The Real Estate and Housing Developers’ Association (REHDA) Malaysia applauds the Unity Government on the measures announced in Budget 2023 today by the Prime Minister and Minister of Finance, Dato' Seri Anwar Ibrahim.
Themed “Membangun Malaysia Madani”, these measures aim to assist the rakyat, while ensuring an inclusive and sustainable economic growth despite the fiscal challenges the nation is facing.
The approach taken by the Government may seem bold and aggressive, but is in fact prudent given the concerns of slower global growth for 2023.
We are hopeful that some of the measures announced towards alleviating the burden of the less privileged will help them navigate their day-to-day life amidst the high cost of living, especially in urban areas.
REHDA expresses our support towards the Government’s endeavours to build 12,400 units of low-cost houses under Program Perumahan Rakyat (PPR) and 4,250 Rumah Mesra Rakyat under Syarikat Perumahan Negara Berhad (SPNB), with allocations worth RM367 million and RM358 million, respectively.
Additionally, the Association lauds the move by the Government to increase Syarikat Jaminan Kredit Perumahan (SJKP) allocation to RM5 billion, which is expected to benefit 20,000 borrowers without fixed income.
This will surely increase the ability for more Malaysians to buy a home which will further improve their quality of life.
We, however, remain concerned that pressing issues highlighted in our Budget 2023 Memorandum, such as the continuous increase of building materials prices is not addressed.
We reiterate that should the issue be left idle for too long it will have an adverse impact on house prices in the open market.
Nonetheless, REHDA will continue our engagements with all relevant industry players, including the Government, to hopefully find a solution to this issue in the near future.
As we reiterate our pledge to continue with our nation-building role of providing quality and affordable homes for the rakyat while providing employment to the 180 upstream and downstream industries, we hope the Government will continue to give their full support to the industry.
Oliver HC Wee, president of Masters Builders Association Malaysia (MBAM)
Master Builders Association Malaysia (MBAM) would like to acknowledge the Prime Minister cum Finance Minister, Dato’ Sri Anwar Ibrahim for the Malaysia Madani Budget tabled today to enhance the Malaysian economy while also reducing the burden of the rakyat.
We would also like to acknowledge the allocation made for the construction industry under this budget.
However, we strongly urge the government to undertake the immediate implementation of the MRT 3 project which will allow the construction industry to benefit from the multiplier effect of this project and eventually help the construction industry to recover.
Many construction players and the construction sub-sectors are waiting to return back to normal in terms of construction volume of business.
The MRT project is currently already at an advanced stage and should be implemented soonest.
Without key mega projects, the recovery of the construction industry will be delayed at the expense of the contractor’s survival.
The current reality faced by construction industry players is the uncertainty of building material prices which contractors have no control over and which needs to be stabilised.
Furthermore, fairer contract terms are needed to protect contracting parties against the price fluctuation.
We also appeal to the government to push public housing by giving the Industrialised Building System (IBS) a bigger boost.
Incentives should also be provided to developers and contractors of projects that utilise Industrialised Building System (IBS) so that the adoption of IBS can be improved and take off better.
Stimulus packages for local and foreign investors to invest on new developments in the private sector should be introduced as the current market sentiment is that developers are not keen to launch new projects and will impact the job opportunities for contractors and builders.
Generally, MBAM is expecting the government to implement the above mentioned in order for the industry to recover from the current economic downturn.
MBAM appeals to the Government to provide more assistance for the construction industry to revive and sustain the construction sector
