Rehda voices concern over 4% MOT stamp duty on foreign property purchase

Property News/ 15 October 2023 Leave a comment


The Real Estate And Housing Developers’ Association Malaysia (Rehda) expressed concern over the government’s plan to introduce a 4% flat rate for the stamp duty on memorandum of transfers (MOT) on purchases by foreign individuals and companies in Budget 2024, presented by Prime Minister and Minister of Finance Datuk Seri Anwar Ibrahim on Friday.

In the press statement, Rehda president Datuk NK Tong said the move may discourage homeownership and Malaysia My Second Home (MM2H) application for those looking to migrate to Malaysia.

Nonetheless, Tong welcomes the announcement to loosen requirements for the MM2H programme. He said: “We look forward to receiving more information about these requirements, and as one of the stakeholders, Rehda hopes to be included in engagements and discussions pertaining to MM2H.”
Meanwhile, he is wary of the decision to increase the service tax to 8% from 6% on selected industries and sectors, explaining that as a player of an industry that is still finding its post-Covid footing and struggling with increased development costs, he fears that this will directly or indirectly impact the livelihood and income of many stakeholders across multiple industries.

Commenting on the overall Budget 2024, Tong said that the concept of Madani continues to take centre stage in the development of the nation, which is reflected in the latest budget.

“Rehda continues to support the government’s Madani concept, as we have done for the past four decades, through cross-subsidising affordable housing for state governments in one form or another. For the housing industry, the various allocations for the B40 are much needed, [and] will allow more Malaysians to own homes, including RM546 million towards Program Perumahan Rakyat in Johor; RM358 million towards the development of 3,500 residential units under 14 Program Rumah Mesra Rakyat; and RM460 million towards the extremely underprivileged in rural areas to build or repair their homes,” he noted.

He added that the increase in the Housing Credit Guarantee Scheme of up to RM10 billion to benefit 40,000 borrowers is also much-welcomed news, which Rehda hopes will help increase homeownership amongst gig economy workers and those without a monthly income statement.

On the other hand, the association views with cautious optimism the announcement to reduce the majority consent for en-bloc sale from 100% to a level consistent with Singapore’s, which stands at 80% to 90%.

“This will better reflect the equity and voice of the people living in strata-titled properties. As Rehda and other stakeholders await more details on the announcement, we believe that should this come into fruition, it will lead towards a reformed urban regeneration landscape that will finally see Malaysia on par with other global nations in terms of urban sustainability,” he noted.

Source: TheEdgeMalaysia.com

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