Housing prices in Penang are set to drop by at least 10% with the implementation of the Sales and Service Tax (SST).

Real Estate and Housing Develo­pers’ Association Penang (Rehda) hopes to bring down the overall housing prices by 10% for those costing above RM300,000 and 6% for affordable housing.

Rehda Penang chairman Datuk Toh Chin Leong said the association here would advise its members to lower the prices.

“We will talk to our members and if they can reduce by 10% immediately it would be great, if not it would apply to all new developments.

“The reduction will apply for all new projects after the implementation of SST this month,” he said during a press conference held by Finance Minister Lim Guan Eng at SPICE Convention Centre in Bayan Lepas.

Toh said replacing the Goods and Services Tax (GST) with SST had reduced costs and Rehda Penang would like its members to pass on any savings to the buyers “as we should not take advantage of it”.

Lim said it was a commendable move, which he hoped would be followed throughout the country.

“It is starting in Penang and is a positive move to reduce housing prices by 10% and 6% respectively.

“It is a good start by a responsible corporate body,” he said.

Source: TheStar.com.my

The Federation of Malaysian Manufacturers (FMM) Penang has supported the implementation of the Pan-Island Link 1 (PIL 1) Highway and Penang South Reclamation (PSR) based on the Penang Transport Master Plan (PTMP).

The PIL 1 Highway is a 19.5km, dual three-lane highway running from Gurney Drive to Penang International Airport (PIA) whereas the PSR project is to build three man-made islands located in the South of Penang island.

In a statement yesterday, FMM noted that any delay in the execution of PTMP and PSR by the state government can cause prolonged productivity loss from worsening traffic congestion, and opportunity loss from constrained growth as Bayan Lepas Free Industrial Zone (FIZ) has no available land for future expansion.

“With this, FMM Penang is strongly urging the authorities to place more investments in the State’s public transport and traffic dispersal system especially in the high-density Bayan Lepas that needs urgent upgrading, and expand the Bayan Lepas FIZ for new investment opportunities,” they stated.

Meanwhile, the statement was also made in response to the online news article dated Sept 9, where an activist alleged the proposed highway may drive out high-value factories, especially precision goods manufacturing factories, at the Bayan Lepas FIZ due to “excessive vibration” from the construction.

It is also stated that FMM had not received any operational issues from their member companies in Bayan Lepas FIZ despite part of its region being adjacent to PIA where high-frequency flights took place, as well as the high volume of vehicles plying the elevated Bayan Lepas Expressway.

“In light of the potential gravity of such claims, FMM Penang would appreciate if the concerned individual may share relevant studies, facts, information or data with the public to support such insights,” FMM stated.

PTMP is a state-initiated project, costing an estimated RM46 billion, which features an undersea tunnel linking the island to the mainland, highways, LRT, monorail as well as extensive bus connectivity on both the island and the mainland.

Source: Bernama

The Federal Government expects a more positive response from housing industry players following its decision to exempt construction services and certain building materials from the Sales and Services Tax (SST).

Finance Minister Lim Guan Eng expressed hope of seeing at least some changes in housing prices as the government was not collecting SST for construction services.

He noted that car prices had dropped since the implementation of the SST and there should be a positive response from the housing sector as well.

“We hope there is at least some changes in housing prices and we expect to see a positive response in the future,” he told reporters here today.

He was responding to a report in an online news portal which quoted the Real Estate and Housing Developer Association (REHDA) Penang immediate past Chairman Datuk Jerry Chan that house prices were unlikely to fall even after the government’s announcement of exemption of certain building materials from SST.

Lim, who is the Member of Parliament for Bagan, said the government would also review the current corporate tax rate in order for the country to maintain its competitiveness in this region.

Expressing his personal point of view, Lim said he had no intention of raising the corporate tax rate but the country’s current financial situation made it difficult for the government to decide the matter.

“We notice that neighbouring countries have reduced their corporate tax and even the Americans have reduced theirs from 35 percent to the current 21 percent.

“Based on the country’s current financial situation, if we are capable of reducing it, then we will reduce the corporate rate; but if not, we will consider other options,” he explained.

He said the announcement of the new corporate tax rate would be made during the tabling of Budget 2019 by Prime Minister Tun Dr Mahathir Mohamad in Parliament on Nov 2.

Earlier, Lim and Customs Director-General Datuk Seri T. Subromaniam attended an SST briefing with the industry players here.

Source: Bernama

Aspen Vision City Sdn Bhd and TM One, the business arm of Telekom Malaysia Bhd (TM), held a signing ceremony to commemorate an award issued to TM for the deployment and provision of extra-low voltage (ELV) service for the first phase of Aspen Vision City-Vervea, the largest gated-and- guarded commercial precinct in Batu Kawan, Penang.

The ELV service includes key lock system, card access, CCTV and access points.

“This collaboration does not only reflect our support towards the development of Vervea townships, but it’s also a testament to our commitment to introduce Internet of Things (IoT) and smart services for commercial properties of Penang,” said TM One (Enterprise Business) executive vice-president Wan Ahmad Kamal Wan Halim.

“In this digital era, the adoption of smart services and converged communications services will pave the way for the development of smart cities.

Aspen Group executive director Datuk Seri Nazir Ariff added, “Both residents and business owners at Aspen Vision City will enjoy having a wide array of infrastructure, amenities as well as smart facilities and services at their disposal.

“Owners of residential units, for instance, will enjoy greater convenience and more control over their homes through various life-enhancing technologies such as IoT, and smart home systems.

“Fibre optic cabling has become a vital infrastructure in our developments.

“Today’s commercial developments must provide efficient and cost-effective environments for Information Age-based workers.

“This can be done through optimisation of its infrastructure. Productivity is the driving force as we are talking about real-time and instant integration and engagement with our customers,” said Nazir.

Set to be developed over multiple phases, Aspen Vision City will comprise an Ikea store, condominiums, bungalows, shop offices, serviced suites, hotel, office tower, financial centre, healthcare facilities and international school, among others.

Within the development will be a world-class trade and exhibition centre. Upon completion, large-scale concerts, auto shows, trade fairs, and consumer exhibitions could become regular fixtures in the northern region’s calendar of events.

Source: TheStar.com.my

It might not be the best mode of transport, he added, saying that there should be other options available.

“While the federal government fully supports the state’s proposal, there should be options for the state to choose from.

“Our studies by the Land Public Transport Commission (SPAD) show that there could be better models which the state could look into.

Chief Minister Chow Kon Yeow, who was also present, told newsmen later that the state was open to options of trams or LRT, bus rapid transport or mass rapid transit.

“Since the minister will send SPAD officers to meet us, we will look into the options as the studies were conducted in 2016 and have just been completed.

“The most important aspect would be securing the financing for the project,” he added.

Meanwhile, the proposed low cost carrier terminal (LCCT), reportedly to be built by AirAsia, might not take place as the federal government is looking into the option of expanding the Penang International Airport (PIA) instead.

Loke said no decision or approval has been given for the LCCT.

He added that discussions on PIA’s expansion were in its final stages but no decision or approval has been given for an LCCT in Penang.

“We are moving fast on the expansion as it needs to be done due to overcapacity but there is no deadline as we are looking at the best model, but approval will be given soon.

“I am aware a lot has been written about the LCCT, but it is mere speculation,” he said.

Chow did not comment on Loke’s statement. He had cited that the LCCT would further spur the growth of Penang, as the PIA at present would not be able to handle the increase in passenger capacity.

Finance Minister and Air Putih assemblyman Lim Guan Eng also brought up the issue during the state assembly in August, saying a solution was needed because the present airport in Bayan Lepas only has the capacity to handle 6.5 million passengers a year but arrivals last year hit 7.1 million and the number is expected to increase to 7.8 million this year.

It was reported that AirAsia, which occupies 50% of the PIA, was in talks to start work on an LCCT within the grounds of the PIA in Bayan Lepas, which is the site of the MAS Cargo Complex.

Source: TheStar.com.my