By Tan Sri Dato’ Sri Leong Hoy Kum, Mah Sing’s Founder & Group Managing Director
We laud the government’s commitment in taking a proactive approach in introducing the well-rounded PENJANA PLAN to regenerate Malaysia’s economy. This vital effort is important for Malaysia moving forward as the country is gradually recovering from the pandemic and advancing into revitalisation of the economy.
The property friendly incentives announced are timely and much needed. The reintroduction of the Home Ownership Campaign (HOC) is particularly appreciated as we secured 60 percent of our sales in 2019 from the previous HOC campaign. This bodes well for us to work towards achieving our 2020 sales target of RM1.6 billion.
The stamp duty exemption and the uplift of 70 percent margin of financing limit for the third housing loan onwards during the HOC period, along with the Real Property Gains Tax (RPGT) exemption would certainly benefit Mah Sing as our product mix echoes the government’s policies and in line with market demand.
Playing our part as a responsible corporate citizen, Mah Sing will continue to work closely with the government to revitalise the property market and ultimately Malaysia’s economy.
The reintroduction of HOC for residential properties from RM300,000 to RM2.5 million until May 31, which includes stamp duty exemption on the instruments of transfer for residential properties limited to the first RM 1 million of the home price, and full stamp duty exemption for loan agreement would be catalysts to spur more activities in the property market.
Additionally, the government’s move to uplift the 70 percent margin of financing limit for the third housing loan onwards for properties valued at RM600,000 and above during the
HOC period will also encourage upgrade of homes as property remains as amongst the safest asset class for long-term investment and a good hedge against inflation.
The previous HOC introduced in 2019 has proven to be effective as it has garnered positive results in terms of sales and most importantly, increasing the country’s home ownership level – particularly first-time homebuyers. Malaysia still has a large population of youths whom have yet to own their first homes and thus, the HOC will help provide first-time homebuyers the opportunity to own their ideal home. RPGT Exemption
We appreciate government’s commitment in taking in constructive feedback from the industry. The RPGT exemption from 1 June 2020 to 31 December 2021 for three residential properties per individual should encourage upgrades of homes, and this will boost both the primary and secondary property markets. This will indirectly improve the homebuyers’ sentiment in property purchase as well.