Budget 2024 as expected, focused on ways to ease the financial challenges of the Rakyat and to stimulate economic growth to achieve a GDP growth of 4% – 5% next year.
CBRE | WTW Group Managing Director Tan Ka Leong, in a statement, said proposals for improvements and developments were presented in broad brush strokes lacking details as to how, when and where, but we were encouraged by their general positive direction.
Kerian in Perak is proposed as a new industrial zone / technology park which will complement Batu Kawan, Seberang Perai and Kulim, Kedah, generating employment and economic activities.
The Government intends to reduce the current requirement of 100% acceptance of en bloc sales of strata properties which will encourage and facilitate the redevelopment of old blocks of flats and apartments. While no threshold figure and / or sale process was indicated for mandatory en-bloc sale, this will be consistent with international practices. We see this as a boon for urban renewal and redevelopment for many cities.
This is a commendable effort to allow maximum land use in urban areas. At least 80% of the owners of a stratified building in Singapore must agree to redevelopment before it can proceed. This is known as the En Bloc Sale Process, and it is governed by the Strata Titles Act.
Existing rules for Malaysia My Second Home (MM2H) applicants will be reviewed and further relaxed which will increase demand for up-market homes.
However, stamp duty for purchases of properties by foreigners will be a flat rate of 4%. While this will increase stamp duty costs, this will have a negligible impact since most properties permitted for sale to foreigners are more than RM1 million which already attracts a 4% stamp duty for the amount in excess of RM1 million.
Five stations of the LRT3 project in the Klang Valley which had been cancelled previously, have been reinstated into the project. This will see renewed development interest in the localities of Tropicana, Raja Muda, Temasya, Bukit Raja and Bandar Botanic. Retaining these stations is expected to complement and improve the public transport network in Klang Valley which could benefit two million residents.
A RM1 billion guarantee fund is proposed to facilitate established developers to revive existing abandoned housing projects, adding to the potential new supply of affordable housing.
The RM5 billion credit guarantee fund for new homeowners has been increased to RM10 billion and eligibility has been extended to gig workers.
A RM100 million fund is proposed for the repair / refurbishment of old / dilapidated low-cost flats owned by B20 households. Although the allocation is small, it is a beginning of addressing the problems of old developments which are currently in a poor state of repair.
The Government is promoting halal industry development by expediting the issue of halal certificates from 51 days to 30 days. This will increase interest in halal industrial hubs’ occupancy and developments.
To promote tourism, visa issuance will be widened to include provisions for visa on arrival and multiple entry visas and these will be particularly to cater for Chinese and Indian visitors.
To foster the growth of the valuable ecosystem, the government suggests designating the Pengerang Integrated Petroleum Complex in Johor as a center for advancing the chemical and petrochemical industries. This can be achieved by offering incentives such as specialized tax rates or investment allowances, which is expected to stimulate investment in high-growth and high-value fields.
Specific initiatives to address the real estate market such as the current overhang situation and incentives for developers investing in the Industrialised Building System (IBS) would have been favoured.
