Malaysia Budget 2018 Timeline - Market Watch
Join us as we put a spotlight on Budget 2018 and the keys point that will affect the property industry, leading with pre-reveal news all the way up to the actual tabling and announcement by Prime Minister Datuk Seri Najib Razak at 3pm on 27 October 2017.
A total of RM280.25 billion has been allocated for Budget 2018. This is an increase of RM19.45 over Budget 2017. Here are some picks from the annoucement:
BR1M to continue in 2018, with 7 million BR1M recipients to receive a maximum payout of RM1,200 each in 2018.
Property RM1.5b allocated for PR1MA over two years to build 210,000 housing unit priced under RM250,000 per unit. To encourage more affordable housing, Step Up Financing Scheme for PR1MA homes to be extended to private developers.
Infra RM6.5bil Budget 2018 allocation for rural development includes:
RM2bil for the Pan-Borneo Highway; RM1.1bil to upgrade bridges, streetlights, villages, surau and markets; RM1bil for SKMM to upgrade the communication infrastructure and broadband facilities in Sabah and Sarawak; RM934mil for rural road projects, including almost RM500mil for Sabah and Sarawak; RM672mil for electricity supplies, including RM620mil for Sabah and Sarawak involving 10,000 rural homes; RM420mil including almost RM300mil for Sabah and Sarawak provided for clean water supply involving 3,000 homes; RM500mil allocated for the Public Infrastructure Maintenance Programme and Basic Infrastructure Project; RM50mil for mapping and measurement of custom lands, in which RM30mil is for Sarawak and RM20mil for Sabah.
Rent Tax exemption of 50% to rental income will be given to home owners for rentals of RM2,000 or less to spur the rental market.
Tax Individual income tax rate for residents will be reduced by two-point percentage for taxable income between RM20,000 to RM70,000. This will increase the people's disposable income between RM300-RM1000.
Infra RM934 million for roads in rural areas, including RM500 mil from Sabah and Sarawak. For electrical energy in rural areas, RM672 mil is allocated including RM620 mil for Sabah and Sarawak involving 10,000 homes.
ADAM! Starting from 1 January 2018 until 2022, newborns in Malaysia will be awarded with a Starting Fund of RM200 via Trust Fund (Amanah Saham). This new scheme is called Amanah Dana Anak Malaysia 2050, or ADAM50.
Infra The government will be upgrading the Penang and Langkawi International Airports and will build a new airport in Mukah, as well as renovate the Kota Bharu and Sandakan airports respectively.
Tourism World Tourism Organisation reports Malaysia is the 12th most visited country in 2016. In conjunction with Visit Malaysia Year on 2020, Malaysia will host numerous exhibitions such as APEC, WCIT and CHOGM. eVisa regional hub will ease applications around the world, especially for expats, foreign students and Malaysia My Second Home (MM2H) participants.
Homestay RM500 million allocation for Homestay initiatives to encourage more homestay operators.
27 October 2017
A Millennial's Guide to Budget 2018 - Asian Correspondent
Malaysian millennials want more money. The generation that has seen their wages stay stagnant since 2007 and are working 2 jobs to save for that house they probably could not afford, could do with a little more dosh in their bank account. What can millennial wish for in the announcement later? Read this interesting article by Asian Correspondent.
26 October 2017
Time to Banish Outdated Budget Model - Free Malaysia Today
The government's tax revenue is expected to increase by 4% to RM228.5 billion next year while total expenditure is expected to top RM270 billion for a 21st consecutive year of budgetary deficit.
How will this RM270 billion be distributed?
Will Budget Solve the Affordable Home Issue? - PropertyGuru
Experts generally believe it will feature additional initiatives related to the government's existing housing programs, 1Malaysia People Housing (PR1MA) and Perumahan Penjawat Awam 1Malaysia (PPA1M).
However, Maybank IB Research believes the federal government is unlikely to expand PR1MA. This is because of the 500,000 low-cost homes targeted to be built from 2013 to 2018, only 267,902 units have been approved across the country. Of this, 8,475 units have been completed, while another 139,393 units are presently under construction as of 16 August.
24 October 2017
The property portal release a wishlist to be inlcuded in Budget 2018, touching on topics such as:
1. An Updated Guideline / Definition of Affordable Property
2. Increased Plot Ratios
3. Revision to Gross Income to Assess Loan Eligibility
4. Relooking Interest Rates
5. Landlord Incentives
13 October 2017
The association urges the government to waive Goods and Services Tax (GST) on construction material for development of affordable housing priced at RM500,000 and below.
REHDA President Datuk Seri FD Iskandar said that waiving the GST it would seriously help first-time home buyers.