Budget 2024 - Mixed reactions from stakeholders

• Varied views from a number of stakeholders in the property segment

The Association expresses concerns over plans to introduce a 4% flat rate for the stamp duty on memorandum of transfers on purchases by foreign individuals and companies. Although the number of foreign ownerships in Malaysia is negligible, this may discourage homeownership and MM2H to those looking into migrating to Malaysia in the future.

REHDA is also wary of the decision to increase service tax to 8% from 6% on selected industries and sectors. As a player of an industry that is still finding its post-COVID footing and struggling with increased development costs, we fear that this will directly or indirectly impact the livelihood and income of so many stakeholders across so many industries. -- Datuk N K Tong president, REHDA Malaysia

There is not much stimulus for the real estate sector such as RPGT and stamp duty exemptions on secondary or commercial properties that can further spur the real estate sector. Neither do we see any initiative to really encourage homeownership by making houses more affordable and counter the home affordability issues.

Though there is mention of relaxation on the MM2H guidelines and conditions, we have to wait to see what are the changes and how it can impact the financial market and real estate industry. -- Tan Kian Aun, president of Malaysian Institute of Estate Agents

While we appreciate the government's efforts, key areas in the property market such as affordable housing supply, property financing, and rental market regulations were not specifically addressed. These issues need to be considered to create a comprehensive plan for industry development. Addressing these issues will contribute to a more vibrant and sustainable property market.

We remain optimistic about the government's commitment and look forward to collaborating with relevant authorities and stakeholders to develop affordable and quality housing -- Datuk Choong Kai Wai, S P Setia Bhd president and chief executive officer

HBA welcomes the announcement of the grant to build PPR and Rumah Mesra units. PPR and Rumah Mesra are forms of social housing for the B40 and hardcore poor segment of the Rakyat. HBA has always stressed that any form of social housing should be provided by the Government and not by private developers. 

However, HBA urges the government to ensure that these PPR and Rumah Mesra units reach the intended target segment and is not abused by unscrupulous people such as being used as foreign workers dormitory. PPR units built are only temporary living quarters for those looking to, in future, to buy their own houses. They should only be rented out by the relevant agencies. -- Datuk Chang Kim Loong, secretary general National House Buyers Association (HBA)

Airbnb warmly welcomes the new tourism-related commitments and incentives in the National Budget 2024. The provision of RM350 million dedicated to tourism promotion and RM120 million for the maintenance and conservation of tourist attractions and heritage sites are strong measures that will enhance Malaysia’s travel appeal, and help position Malaysia as a preferred international tourism destination in the long term.

We remain committed to working hand in hand with the Government to support the rejuvenation of Malaysia tourism, and ensure that more local communities and Malaysian entrepreneurs are able to leverage the benefits of the travel economy. -- Mich Goh, Airbnb head of Public Policy for Southeast Asia, India, Hong Kong & Taiwan

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It looks like the government is setting longer plans like confirming the Visit Malaysia Year in 2026 and the 4% flat rate stamp duty for property transfers by non-citizens and foreign firms. However, it would be more helpful if Putrajaya confirmed the latest revised scheme of MM2H since a lot of foreigners and non-citizens were actually waiting for it. The 4% flat rate stamp duty is also not favourable for those foreigners who wish to buy below RM1 million in certain areas and states. 

It is a good move that the government tries to reduce the burden of the rakyat by imposing the nominal stamp duty of RM10 to replace the previous ad-valorem rate on real estate transfer documents. I hope that the government will also look into reducing the stamp duty of local residents for the secondary market as well. -- Ethan Leong, WEREG Properties Sdn Bhd chief executive officer

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