The upcoming revision and expansion of Malaysia’s Sales and Service Tax (SST), effective July 1, 2025, is expected to have minimal impact on the residential housing sector. According to RHB Investment Bank Bhd, contractors focused on residential projects, such as MGB Bhd and Kerjaya Prospek Group Bhd, will remain largely unaffected.

The revised SST introduces a 6% services tax on construction services, applicable to contractors with annual revenue exceeding RM1.5 million. However, residential and public housing projects are exempt, along with basic construction materials and certain business-to-business transactions, avoiding double taxation.

Conversely, contractors engaged in commercial, industrial, and infrastructure projects — including firms like Sunway Construction Group, Gamuda Bhd, and IJM Corporation — will be subject to the tax. These contractors may need to factor in the tax when bidding for new projects or renegotiate terms for ongoing contracts.

Despite concerns, the broader construction sector outlook remains positive. The continued exemption for residential projects helps ensure housing affordability remains relatively stable. Moreover, data centre developments — a key growth driver — are expected to proceed, even with the additional tax cost. For example, a 6% services tax on a RM1 billion data centre project would translate to RM60 million, a marginal figure for global tech firms like Google and Microsoft.

RHB maintains its “Overweight” stance on the construction sector, citing resilience in key areas and strategic exemptions that cushion the impact on essential housing and infrastructure. Overall, while the revised SST introduces higher tax exposure in some segments, the residential housing market is expected to remain insulated.

About Central Residence

A residential project in Jelutong, located on 1.2 acres of land along Lorong Madrasah, directly opposite Jelutong Palace apartment. Just 5 minutes from the Penang Bridge and a short drive from the Jalan Ahmad Nor/Tun Dr. Lim Chong Eu interchange, this 35-storey condominium offers 298 residential units and includes a 10-level car parking podium.

Find out more about Central Residence

Penang Chief Minister Chow Kon Yeow has instructed state Housing Committee chairman Datuk Seri S. Sundarajoo to review the housing discount policy announced for Indian Muslims, with the intention of expanding the initiative to benefit all homebuyers.

The directive follows public feedback regarding the recent announcement of a five per cent discount for first-time Indian Muslim homebuyers on unsold completed units. Chow said the feedback suggested that such incentives should be extended to all buyers to help rejuvenate the property market, especially in addressing the issue of overhang units.

“The goal is to ensure the policy is more inclusive and aligned with the principles of social justice,” Chow stated, adding that Sundarajoo is expected to work with developers to explore broader implementation.

The state executive council (exco) will deliberate on the policy in an upcoming meeting and make a final decision that serves the interests of all communities.

Sundarajoo had earlier clarified that the discount does not apply to Bumiputera quota units or alter existing housing policies. He said the initiative aimed to encourage greater homeownership among underrepresented groups, without infringing on the rights of others.

The policy announcement sparked criticism from human rights lawyer Rajesh Nagarajan, prompting Penang DAP chairman Steven Sim Chee Keong to raise the issue with Chow. Sim reaffirmed the state’s commitment to ensuring fair access to housing for all Malaysians.

A Blossoming New Chapter in Penang’s Premier Garden Township

Nestled within the serene, master-planned Botanica. CT township in Balik Pulau, Penang, Begonia is the latest residential gem designed for families who value nature, space, and community.

Introducing Begonia: 2-Storey Semi Detached Home in Penang

Begonia @ Botanica.CT offers 60 units of 2-storey semi-detached homes in a gated and guarded environment with 3 different design types;

• Type A – Gratitude (Built-up: 2,149 sq.ft.)
• Type B – Unique (Built-up: 1,929 sq.ft.)
• Type C – Harmony (Built-up: 2,001 sq.ft.)

Key Features of Begonia @ Botanica CT :

• FREEHOLD Strata – 2-Storey Semi Detached Home
• Spacious & Practical Layouts: 4 bedrooms, 3 bathrooms with multi-purpose living spaces
• Green-Centric Design: Landscaped parks, tree-lined streets, and pedestrian-friendly walkways
• Gated & Guarded Community: Peace of mind with 24-hour security
• Extra Land Size – Extra 8’ side garden and extra 21’ backyard*

Why Choose BEGONIA @ Botanica.CT?

✅ FREEHOLD Residential Property – A lasting ownership.
✅ Strategic Location – Seamless access to essential amenities including retail outlets, international school, healthcare facilities and daily conveniences.
✅ Exclusive Community – LIMITED units available, thoughtfully planned low-density neighbourhood.
✅ Secure Gated Community – Peace of mind with enhance safety features.
✅ Landed Home with Extra 8ft Side Garden.
✅ Show House NOW OPEN for Viewing – Come experience for yourself!

Located at Botanica.CT, a 300-acre master-planned garden township in Balik Pulau. It features various residential properties, a commercial precinct and the Prince of Wales Island International School. Upcoming developments include a 173-bed Selgate Specialist Hospital, a Wetland Park and Eden at Botanica CT – The First Integrated Senior Living Resort in Penang.

As at current stage, the project has already done the completion of Building and Architectural Works while Certificate of Completion (CCC) is targeted to obtain by 2025.

For enquiries, contact MTT Properties & Development Sdn Bhd Sales Gallery at 04-866 2399 or 012-865 3699 or book your private tour at https://bit.ly/Begonia-Botanica

Visit the Sales Gallery at:
Botanica.CT Sales Gallery
No.8-10, Jalan Sungai Air Putih,11000, Balik Pulau, Penang

WhatsApp below:

• Johannson (wa.me/60124633699)
• Asmu’I (wa.me/60125707699)
• Mei Ling (wa.me/60124958699)

Penang is poised to make another leap in infrastructure development with the construction of a new permanent bridge linking the island’s southern coast to the ambitious Silicon Island project. Construction of the four-lane marine viaduct is scheduled to begin this month, with completion expected by December 2028.

Announced by Penang Chief Minister Chow Kon Yeow, the 380-metre bridge forms a vital part of the Pan Island Link 2A (PIL2A) project and is aimed at enhancing connectivity and supporting the state’s long-term development agenda. The full stretch, including connecting roads, will span about 1.5km from Persimpangan Permatang Damar Laut to Silicon Island.

Phase One of construction is targeted for mid-2027, enabling access to Silicon Island’s first operational factory. The bridge and its associated infrastructure come with an estimated price tag of RM390 million.

“This bridge will be a key artery linking Silicon Island to the Penang Second Bridge and beyond. It plays a crucial role in our future-facing plans,” Chow said during a site visit to the reclamation area.

Also present were top state officials including Deputy Chief Ministers I and II, key committee chairmen, and senior representatives from the Penang Infrastructure Corporation (PIC) and Penang Island City Council (MBPP).

To complement the infrastructure development, Chow also unveiled plans for a new community hub—Medan Selera Matang—to be built in Permatang Damar Laut. Overlooking the emerging Silicon Island, this 0.8-hectare facility will include a Village Community Management Council (MPKK) hall, a Fishermen’s One-Stop Service Centre, food outlets, and storage sheds for local fishermen.

The Medan Selera Matang project is scheduled to begin construction in the third quarter of this year and be completed by the end of 2027. It will also house a suction tank and pump house to support Silicon Island’s initial water supply needs. The total cost for these community and utility facilities is estimated at RM36 million.

“The design of Medan Selera Matang will reflect the broader aspirations of the Silicon Island development. It is not just about infrastructure, but creating vibrant spaces for communities and opportunities for tourism,” said PIC CEO Datuk Seri Farizan Darus.

Silicon Island, previously known as Island A under the Penang South Island (PSI) reclamation project, covers a total of 2,300 acres. About 160 acres have already been reclaimed. Phase One involves 1,260 acres, while Phase Two will cover the remaining 1,040 acres.

Chow noted that the presence of a temporary bridge next to the site of the future permanent viaduct has been instrumental in accelerating reclamation and infrastructure work.

He also provided updates on the proposed Light Rail Transit (LRT) depot on Silicon Island. Physical work is expected to begin once MRT Corp issues a formal notice to proceed in the coming weeks.

The development of Silicon Island is being spearheaded by Silicon Island Development Sdn Bhd (SIDSB), a joint venture between PIC PD Sdn Bhd and SRS PD Sdn Bhd.