Given the market-friendly policies of the Finance Ministry and the Housing and Local Government Ministry, the International Real Estate Federation (FIABCI) has called on the federal government to review the real property gains tax (RPGT).
“So now we wish for more market-stimulating policies during the 2020 Budget, so that the property market can pick up next year,” said FIABCI Malaysia president Michael Geh.
He revealed that they hope the government would “relook at the RPGT which is deemed to be unpopular as perpetual RPGT is currently affecting those who are considering upgrading their houses”, reported Bernama.
With the primary and secondary markets on the path to recovery, Geh explained that positive sentiment is important in order to keep the pace.
In tabling of the 2019 Budget, Finance Minister Lim Guan Eng announced that the government would impose a five per cent RPGT on all Malaysians while increasing the tax by five per cent to foreigners to 10 per cent for those selling their properties after five years.
Lim is set to table the 2020 Budget in parliament on 11 October.
Geh also asked the government to expand the Malaysia My Second Home (MM2H) programme by offering it to foreign property buyers.
“Linking property purchase with MM2H is a more acceptable way of persuading others to buy Malaysian properties,” he said.
“MM2H should be continued along with its stringent checks to make sure we are accepting genuine people who want to live here and contribute to the economy here.”