The much-anticipated annual budget is finally presented in Congress on October 29, 2021. The Malaysian government allocated RM332.1 billion in the Budget 2022, which is the largest grant in history, of which approximately RM233.5 billion is for administrative expenses, RM75.6 billion is for development expenses, and the remaining RM23 billion will be used for Anti-epidemic fund for COVID-19. At the same time, Sabah and Sarawak will also receive higher development funding next year, reaching RM5.2 billion and RM4.6 billion respectively.
In terms of real estate, the following are the real estate policies and incentives announced by the Minister of Finance of Malaysia when he presented the Budget 2022.
1. The government will allocate RM2 billion to the Skim Jaminan Kredit Perumahan to help casual workers, self-employed people and farmers who have no proof of stable income but have the ability to repay loans to buy houses.
2. The Property Profit Tax (RPGT) for Malaysians and permanent residents will be abolished from the sixth year, that is, adjusted from 5% to 0%, effective from January 1, 2022.
3. If the landlord of commercial real estate provides tenants with a rent discount of at least 30% between January 2022 and June 2022, they can enjoy a special tax exemption.
4. The government will allocate RM1.5 billion of funds to build and maintain domestic low cost housing units to improve the living environment of the low-income class, including:
* People's HDB PPR-11,800 apartment units (RM398 million)
* Family-friendly housing Rumah Mesra Rakyat-3,000 housing units (RM315 million)
* Civil servant housing Perumahan Penjawat Awam (RM266 million)
* Housing Assistance Program Program Bantuan Rumah-Construction of new houses and repair of old houses, a total of 14,000 (RM361 million)
* House Maintenance Program Program Penyelenggaraan Perumahan and Malaysian House Maintenance Fund Tabung Penyelenggaran Perumahan Malaysia
5. The neighbourhood program Rukun Tetangga community organization can apply for a subsidy of RM6,000 to promote community unity and encourage residents to participate in voluntary services in the community.
6. In order to curb the spread of COVID-19, if companies want to renovate their own stores and offices to improve the seating distribution and indoor ventilation for employees or customers, they can apply to the government for a renovation subsidy of up to RM30,000, until December 2022 31st.
On the whole, most of the Malaysian government’s allocation in 2022 will be used to alleviate the impact of the epidemic on people and businesses, and continue to promote the recovery of the country’s economy. For example, the government will provide employers who hire graduates and apprentices with a reward of RM900 per month for a period of 5 months; allow micro, small and medium-sized enterprises to delay the payment of income tax for up to 6 months until June 30; for 18 Young people between the ages of 20 provide e-wallet cash of RM150; there are measures to reduce the EPF/KWSP contribution rate of the provident fund to 9% and extend it to June 2022. These are all launched to reduce the domestic unemployment rate, provide assistance in living expenses for the people, and help companies continue to operate.
However, from the perspective of the real estate industry, the benefits and measures announced by Budget 2022 are not many. Many wishes or suggestions made by developers and real estate buyers have not been realized and adopted. For example, the most popular proposal to extend the homeownership program (HOC) and extend the purchase discount of the homeownership program to the second-hand housing market will not appear in the 2022 budget. According to the results of the Consumer Sentiment Survey conducted earlier in the second half of 2021, among 1,002 respondents, 58% hope that the HOC can be extended and extended to the second-hand housing market.
In any case, we very much agree with the government’s measures to continue to help people and businesses get rid of their difficulties while further promoting economic recovery. We also hope that the government will pay more attention to the challenges faced by Malaysians in buying houses in the future, so as to help more Malaysians realize their home purchases. dream.
We also hope that everyone can get through this difficult time, and we wish Malaysia to get rid of the haze of the COVID-19 pandemic as soon as possible!