Mah Sing Confident Budget 2023 Will Boost To The Overall Malaysian Economy

Mah Sing Group Berhad (Mah Sing) is optimistic that Budget 2023 will inject a huge boost to the overall economy, on the back of the largest ever budget allocation ofRM372.3billion.

The group cited that the Government’s efforts to improve the people’s well- being, particularly the Rakyat’s income and social protection, as well as to improve business competitiveness and value chain.

The group also sees key points in Budget 2023 which revolves around three main objectives: reinforcing the momentum of economic recovery, strengthening economic resilience, and implementing comprehensive reforms.

Mah Sing’s Founder & Group Managing Director Tan Sri Dato’ Sri Leong Hoy Kum said: “This year, we see many practical measures which will benefit the M40 including RM100 ewallet credit, and more significantly, the personal tax rate will be reduced by 2% for Malaysians earning between RM50,000 to RM100,000 annually.

“This is a much-awaited wishlist which has finally been granted this year. Not only will it make Malaysia a more attractive labour market, it will also put more disposable income in the Rakyat’s pockets, which allows them to spend on value-accretive assets like properties.

Another welcomed measure is the exemption of 75% of stamp duty on the sales and purchase agreements of properties priced between RM500,001 to RM1million (signed by 31 December 2023).

For instance, a 75% exemption on an RM750,000 property purchase will save the buyer up to RM15,000. This will pique the interest of middle-to-upper income first time home buyers as well as those who are looking to upgrade their property.

Mah Sing’s projects in this category includes Cerrado Suites, Southville City: from RM530,000 (serviced apartment), Ferringhi Residence 2, Penang: from RM788,000 (condominium), Rosalia, M Senyum, Salak Tinggi: from RM560,000 (double storey terrace home), Delphy, M Aruna, Rawang: from RM550,000 (double storey link home) and Phase 1 of M Panora, Rawang: from RM638,000 (double storey link home), he added.

Leong said the 100% stamp duty exemption for first time homebuyers remain, applicable for properties priced RM500,000 and below, RM6,500 savings on an RM300,000 property purchase.

This is positive news of buyers of Mah Sing’s M Nova, Kepong: from RM318,000 (high-rise residential), M Arisa, Setapak: from RM380,000 (high-rise residential), M Luna, Kepong: from RM385,000 (high-rise residential), M Astra,Setapak: from RM399,000 (high-rise residential), M Senyum, Salak Tinggi: from RM450,000 (double storey terrace home), M Adora, Wangsa Melawati: from RM468,000 (high-rise residential), M Vertica, Cheras: from RM480,800 (high-rise residential), M Oscar, Sri Petaling: from RM499,000 (high-rise residential), M Minori, Johor Bahru: from RM260,000 (serviced apartment) and Erica West, Meridin East, Johor: from RM424,000 (double storey link home).

The Government has made various allocations homes in rural areas and People’s Housing Projects, and private developers like Mah Sing can continue to serve the market with its affordable range of high rise and landed homes. These measures would be a timely catalyst in hastening the property industry’s recovery, in line with the general consensus that 2023 will be a better year for Malaysia, he said.

With the government steering the direction, we believe that all industry players and stakeholders will work together to ensure that the incentives ultimately benefit home buyers and propel the Malaysian property market to better recovery.

Exemption of stamp duty to 75% for properties priced between RM500,001 to RM1million

Leong added the group applauds the government for increasing the stamp duty exemption from 50% to 75% for properties priced between RM500,001 and RM1 million with an SPA signed by 31 December 2023. For instance, a 75% exemption on an RM750,000 property purchase will save the buyer up to RM15,000.

This will pique the interest of middle-to-upper income first time home buyers as well as those who are looking to upgrade their property.

RM10 stamp duty for family property transfers

We also appreciate the government’s announcement of a RM10 stamp duty for family property transfers, e.g., between husband and wife, parents and children, aswell as grandparents to grandchildren. This will alleviate the burden on buyers while encouraging housing transactions in the property market, which will boost the housing market during this trying time.

2% reduction in the resident income tax rate for the majority of taxpayers

Leong said its positive to see the decision to reduce the individual income tax by 2% for the majority of taxpayers. This will increase the cash flow in hand, easing the financial burden on individuals and allowing them to make long-term plans such as property purchases.

Mah Sing’s corporate responsibility strategic partner, Mah Sing Foundation (MSF) also appreciates the comprehensive initiatives tabled by the government aimed at assisting B40 communities as well as children, our future generations.

Education Related Initiatives for School Children

Mah Sing Foundation (MSF) supports the Government’s initiative to ensure proper nutrition and cognitive development among school students by allocating RM777 million for the Rancangan Makanan Tambahan (RMT) feeding programme.

In addition, the government has allocated RM1.1 billion for school upgrading and maintenance, as well as another RM1.2 billion to upgrade rundown school buildings and infrastructure, particularly in Sabah and Sarawak.

This is in line with MSF’s vision of ‘Reinventing hope and creating lasting change in children’s lives’ as conducive and well-conditioned learning spaces can have a direct impact on student performance and allow children in rural communities to access quality education.

Furthermore, we applaud the government’s initiative to provide additional classes to students from PPR flats who dropped out of school during the Covid-19 pandemic. This will allow these students to catch up on their studies and return to school.

Healthcare Support for Community

MSF also lauds the Government’s allocation of RM11 million for mammogram and cervical cancer screenings, which will ensure that women, particularly those from low-income families and those without adequate insurance, have timely access to breast and cervical cancer screening, diagnostic, and treatment services.

In addition to that, the allocation of RM8 million for the Social Support Centre to provide advocacy and counselling sessions is definitely a perk to our community, especially those who were affected by financial difficulties, domestic violence and depression.

Community Development and Wellbeing

In line with the Malaysian government’s goal of eradicating hardcore poverty by the end of 2025, MSF applauds its RM1 billion allocation for the Program Pembasminan Kemiskinan Tegar Keluarga Malaysia (BMTKM), which will benefit hardcore poor communities. The Government’s allocation of RM10 billion for cash aid under Jabatan Kebajikan Malaysia and Bantuan Keluarga Malaysia also helps B40 households ease their financial burden, particularly those recovering from the Covid-19 pandemic impact.

Adding to that, the RM235 million allocation to assist women entrepreneurs aligns with the MSF’s goal of providing opportunities and empowering women in the B40 group to improve their livelihoods through upskilling and entrepreneurship.

At the same time, the tax exemption for women on income received from assessment 2023 to 2028 to encourage more women to return to work after a career break period contributes to our goal of enabling families to build stability and resilience to support the upbringing of their children.

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