LBS Bina outlines six proposals for Budget 2018 to boost property sector

KUALA LUMPUR (Oct 4): Property developer LBS Bina Group Bhd has outlined six proposals for the upcoming Budget 2018, which it believes will benefit, in particular, first-time homebuyers, the property industry as well as the entire Malaysian economy.

In a statement highlighting its Budget 2018 wishlist, LBS proposed for lowering of personal income and corporate tax rates. The group said the additional margin in income can be used to ease the burden of Malaysians when purchasing their homes, while reducing corporate tax to ease the burden of businesses, particularly developers, would enable them to reinvest in the business, a move that can lead to improved productivity, increased job opportunities and increased quality and quantity of developments.

In terms of the easing of cooling measures on the property sector, LBS proposed for the review of the Real Property Gains Tax, as relaxing its terms will encourage more Malaysians to invest or upgrade their homes, directly creating and further boosting property market activities.

"On measures to boost the local property market, LBS also suggests lowering the minimum threshold from RM1 million to RM500,000 for foreigners looking to purchase homes in Malaysia," the group said.

As many first-time homebuyers still find it challenging to meet the strict terms for loan approvals, LBS said more flexible end financing guidelines and additional incentives by the government and Bank Negara Malaysia (BNM) will "greatly empower" first-time home buyers financially.

Further, LBS called for the expansion of the stamp duty waiver to include properties priced between RM300,000 and RM500,000, as this will help lower the cost of property transactions.

LBS also hopes the government can grant incentives to encourage developers to implement the Industrialised Building System (IBS) into their practices which have proven to result in reduced manual labour required at construction sites, and neater and cleaner construction sites with minimal congestion.

IBS adoption will be made mandatory in the construction industry by 2020.

"The IBS also improves quality control as processes are streamlined and managed in the factory assembly line setting, effective construction methods for waste minimisation, and most importantly, construction time is reduced by two to three months, leading to buildings being completed quicker and allowing an earlier return of investment," LBS said.

As a means to increase the number of affordable homes in Malaysia, LBS also suggested for the government to consider setting up a special fund for developers, with an interest rate of 4%, to aid and encourage more developers, especially smaller players, to build more affordable homes.

Additionally, LBS hopes the government will consider incentives for township developers, generally invest more in the overall planning which includes, among others, the strategic layout of homes, infrastructure and accessibility. The incentives, said the group, will encourage more developers to take on more township developments.

"As a home-grown developer, LBS has played and continues to play an active role in supporting the nation's agenda of helping the rakyat realise their dreams of having their own home," said LBS group managing director Tan Sri Lim Hock San.

"We believe our proposals will greatly benefit homebuyers, particularly first timers, the property industry and the Malaysian economy as a whole. So we sincerely hope the government will consider our proposals in the upcoming Budget 2018," he added. — theedgemarkets.com

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