Malaysia's budget 2021 by Finance Minister, Dato’ Sri Tengku Zafrul Bin Tengku Abdul Aziz has been announced with measures to tackle economic challenges and especially focused on less fortunate households. The following is a statement by the President of Sabah Housing And Real Estate Developers Association (SHAREDA), Datuk Chew Sang Hai.

"The tabled Budget 2021 has taken the property and real estate development sector into consideration by proposing two (2) special real estate measures.

Firstly, the proposed Stamp Duty Waiver in particularly on both instruments of transfer and loan agreement for first-time home owners with house value up to RM 500,000. As proposed by the Finance Minister, these exemptions would be effective for the Sale and Purchase Agreement (SPA) completed from 1 January 2021 till 31st December 2025.

Secondly, the Budget 2021 also proposed Rent-to-Own Financial Scheme by selected Government Link Corporations (GLC) housing projects that would further enhance the real estate industry and to help rakyat to own their dream home. SHAREDA concurs to the proposed measures as these will further help to recover and revitalises the real estate industry as well as to extend the home ownership ability to the people.

Similarly to matters related to home ownership, SHAREDA has compiled and monitor the outcome of the Home Ownership Campaigns (HOC) that has been mobilised nationwide for the past 2 years. From our records, we deduced that there has been an obvious slow take-up rate on bookings in the last few months, mainly caused by the Covid-19 outbreak.

Hence, SHAREDA would like to extend our appeal to the Sabah State Government in this coming State Budget to propose and allow more incentives to boost the Sabah Property Market.

We propose for Sabah Government to consider waiving at least 3-5 years of Assessment Tax for properties registered under the HOC. This would be an additional effort and incentive from the State Government to help revitalise the Sabah property market and subsequently improve the market sentiment and confidence.

Furthermore, SHAREDA proposes financial aides from local financial institutions such as Borneo Development Corporation (Sabah) and Sabah Credit Corporation to provide 100% end financing with subsidizations of interest to Sabahan owners who had purchased affordable house at a value below RM 380,000, which is similar with the Sarawak Government providing such facilities through Mutiara Mortgage & Credit Sdn Bhd to help Sarawakians to finance affordable home housing.

Additionally, SHAREDA reiterates on the “Sabah My Second Home” which was proposed during last year’s budget will be implemented the soonest possible by the State Government. Also, the initiative should encourage greater foreign investors by reducing the foreign purchaser threshold to property value at RM 500,000 onwards.

SHAREDA views that to further recover and stimulate the Sabah Economy, the blueprint on Privatisation or Private Public Partnership in affordable housing, infrastructures, agriculture, and manufacturing sectors should be implemented decisively and urgently. We believe that the new State Government is on track to establish a well-balanced economy and safety of the people of Sabah during this crucial and challenging and unprecedented period of time."