Sabah Housing And Real Estate Developers Association (SHAREDA) calls for more measures and various incentives from the government to provide all sectors of the “Malaysian Family” in the forthcoming national budget for 2022. This will not only curb the rising cost of doing business but, enable us to endure during the post-pandemic economic recovery period. As stated by SHAREDA President, Datuk Sr Chua Soon Ping.
He also expressed that, “It had been very tough and challenging for all business sectors to survive as we are all impeded badly during the past 2 years since the COVID-19 pandemic era prowled into everyone’s lives and lifestyles, forcing us to adapt to changes to the needs and wants of the new norms of SOPs of RMCO, CMCO, MCO, EMCO, FMCO, etc. We are hopeful to ride out of the storm soon as our government is gearing up to start opening the doors to business as we are entering into the next phase of achieving a higher level of herd immunity within our workforce and community to flatten the curve. In addition, we believe that the authorities will be looking into implementing a friendly and workable framework of good governance in the planning policies and in providing us with the much-needed alternative short terms solutions to curb the cost from rising, in particular for the private sectors.”
Hence, Datuk Chua said that “It is our fervent hope that our leaders and authorities will listen and consult the comprehensiveness of the stakeholders’ opinions to contribute wholesomely to the rebuilding and recovery of the nation’s economy after all sectors were badly hit by the devasted era of the ongoing and prolong Covid- 19 pandemic. Surely, there will be sweeteners provided for the “Malaysian Family” in all business sectors and benefits to our rakyat of B40 and M40, to overcome the escalation of cost of living standards in the country as we enter into the recovery era.”
Then, SHAREDA humbly submits a wishlist for the forthcoming budget to the government seeking for assistance in the property sector for the developers, contractors/builders and its related downstream businesses to contribute to the GDP growth and to boost the market confidence and affordable housing segment.
1. HOME OWNERSHIP CAMPAIGN (HOC): PROPOSED TO EXTEND FOR ANOTHER 6 MONTHS TILL 30 JUNE 2022 - DUE TO LIMITED TIME FOR BUYERS TO VIEW THE SHOW UNITS
Propose to the government to consider to continue to extend the incentive of stamp duty HOC to another six (6) months till 30 June 2022. The housebuyer will be given the incentive of stamp duty waiver for the memorandum of transfer and financing loan from the government for residential property priced more than RM300,000 up to RM2.5 million. During the announcement of the HOC extension from 1st June 2021 till 31st December 2021, most states in Malaysia are still in the MCO phase with the construction sites and developer’s offices closed including the showrooms or sales gallery are not allowed to open. Hence, there is a time-lapse for the potential homebuyers to view the show units until after 25.08.2021 when the showrooms or sales gallery was allowed to open in Sabah.
It was observed that the needs of the primary market to be extended to the secondary market, as 65% of total value and volume transacted in the residential market is from the sub-sale segment. Generally, housebuyers are encouraged to purchase completed properties at discounted prices from the developer. Hence, the continuity to promote and sell off the unsold stocks will absolutely generate cash flow and sustainability for the ongoing projects and operational cost to complete and deliver the project and to avoid abandonment. Besides that, it will help to alleviate to clear or re-sale the overhang stock due to stringent and high rejection of end financing by the bank due to loss of income/job of homebuyers.
2. MYHOME SCHEME OF RM30,000 TO FIRST TIME HOME BUYERS OF AFFORDABLE HOUSING.
SHAREDA urge the Government to continue to allocate RM300 million or more for the purpose of building 10,000 units or more of affordable homes in the country since 2014. This will encourage the private sector to participate to build more affordable homes under MyHome scheme which offers incentives up to RM30,000 per home unit which benefits first-time homebuyers and private housing developers. The subsidy provided by the government to each home sold helps to reduce the costs for the first time home buyers who are not required to pay the standard 10% down payment as well as ensuring financial returns for housing developers.
3. TEMPORARY MEASURES FOR REDUCING THE IMPACT OF CORONAVIRUS DISEASE 2019 (Covid-19)
with regards to contractual obligations to account for the Movement Control Order (MCO) 2, MCO 3, Enhanced MCO, Full MCO and National Recovery Plan Phases 1 and 2. This is important to be implemented effectively to protect the interests of the affected parties for their inability to meet the contractual obligations due to reasons which are beyond their control. To propose to the government for consideration to extend the aforesaid measures till the end of March 2022 in the country.
4. REAL PROPERTY GAINS TAX (RPGT) – TO REVIEW OR WAIVE DUE TO SLUGGISH MARKET
One of the initiatives introduced under the PENJANA 2020 under the Exemption Order, Malaysians will be exempted from paying the 5% (or higher) RPGT for the disposal of residential property from 1st June 2020 till 31st December 2021. Proposed to the government to consider to review or reduce the RPGT rates to zero imposition on transfer or disposal of properties from the 6th year onwards or downward revision of RPGT rate. This will help to boost the market during the current challenging market very much affected by the Covid-19 pandemic. Also, it will reduce potential taxable profit for homebuyers who purchased a home before this date under HOC. Hence, there will be saving and provide financial relief to help the B40 and M40 low-income homebuyers to own a home, especially the affordable housing scheme.
5. TO RELAX AND STRINGENT LENDING POLICY BY BANKS
To propose to the Government to seriously preview the needs in the form of incentives to help improve the approval rates for B40 and M40 applicants especially the first-time homebuyer. Also, to consider certain alternative measures or proof of income to supersede outdated standards set very stringent for the local housebuyer to obtain end financing due to the uncertainty of the pandemic and categories of job occupations considered high risk for a genuine case and a first-time homebuyers.
6. TO STREAMLINE THE MM2H GUIDELINES, THRESHOLD PRICE AND INCENTIVES FOR FOREIGN BUYERS IN PROPERTY INVESTMENT
To propose to reduce the RPGT rate for foreign ownership to attract the niche foreign investors and talents to come and invest in the property market under the official threshold capped price and the types of properties accordingly. To propose to reduce the threshold price from RM1 million to RM600,000 per unit of residential property for highrise development and commercial suites in Sabah. The sale of the local stock to foreigners will help to stimulate the economy and its related downstream business. In the meantime, to propose to the government to allow eligible and fully vaccinated foreign investors to enter our country with strict SOPs imposed. As more economies in the region are opening up and countries are pushing for growth and recovery, our long-stay policy must be competitive. The competition for foreign investment in Asian countries is fierce.
"We believe that this is the right time for our Rt Hon. Chief Minister to make the right decision and introduce an investor-friendly policy to help boost our economic recovery and pave way for tourism growth for the state of Sabah. SHAREDA has full confidence in the state administration to make a wise and holistic decision on this matter for the benefits of Sabah.” Datuk Chua concluded.
The Budget 2022 is set to be tabled and announced tomorrow. Follow Property Hunter on Facebook and check out our news page for updates on Budget 2022.