In the recent networking lunch with the bankers at the newly completed Hyatt Centric Kota Kinabalu, the President of Sabah Housing and Real Estate Developers Association (SHAREDA) Datuk Sr Chua Soon Ping reiterated the need for a Sabah-specific MM2H policy including the privilege of Bumi purchasers to enjoy the special discount of at least 5% for any lots purchase and all buyers to enjoy the full extension of leasehold up to 99 years will be beneficial for buyers and revenue for the state.
The distinction between Sabah’s own MM2H compared to the overall MM2H policy and Sarawak’s MM2H (S-MM2H) is required to stimulate the state economy for direct foreign investment. “There is a clear need to simplify the procedures for applicants such as online approval subject to full documentation on arrival”, the President of SHAREDA commented.
State-friendly criteria as well as simpler conditions should be imposed in order to attract and not deter potential foreign investors who are looking to plant roots in Sabah. Chua also echoed that encouragement for young and special talents should be prioritised by offering swifter work permit approvals. The tech-savvy younger generation will be able to propel the general skill level forward which is needed in Sabah.
On the Bumi quota, Chua debunked the need for Bumi Lots and instead focused on “Bumi Purchasers”. The re-emphasis on the latter will allow Bumi buyers to enjoy special privileges rather than be encumbered with unfriendly Bumi Lot conditions (e.g. 5 years release mechanism). With this amendment, Bumi buyers are able to walk into any developer’s sale gallery, allowed to book any lots and still enjoy the special discount of at least 5% over and above all the gifts and discounts given.
The SHAREDA President suggested that the benefit for Bumi buyers are not only limited to high-rise properties but extended to landed properties as well.
SHAREDA submitted an official request on 14th September to Chief Minister’s office to look into the extension of land tenure to 99 years at any point in the land tenure. It is mutually beneficial for both the government as they are able to increase their revenue by imposing additional extension premiums, but also the buyers who are able to enjoy the full extension of the leasehold to 99 years.
The full 99 years will add significant value for sales and marketing purposes for the affected land, and also should be applicable for all titles irrespective of residential or commercial properties.
The Chief Minister’s office has since reciprocated and acknowledged SHAREDA’s efforts in assisting the picking up of the pace for the local market. SHAREDA lauded the initiatives of our state government for their pro-active directions and in consideration of the local sentiments of homeowners for the property market and moving forward the local market to lure more foreign investors to invest in Sabah next year, with hope to being assisted more by the government. Awaiting the announcement of the good news soon.