JLL: RM2 billion Housing Credit Guarantee Scheme will benefit first-time buyers

PETALING JAYA (Oct 29): The allocation of RM2 billion Housing Credit Guarantee Scheme announced under the Budget 2022 will benefit first-time homebuyers, especially wage earners without steady incomes, said JLL Property Services (Malaysia) Sdn Bhd country head YY Lau. 

In JLL Malaysia's newsflash today, the consultancy firm also lauded the abolishment of the Real Property Gains Tax (RPGT) on the disposal of residential properties after the sixth year of ownership as this could reduce the burden on property owners.

“This move could boost residential transaction activities in the market and reduce the burden of property owners from paying higher taxes during disposal of properties,"  said Lau.

Another property sector-related measure deemed positive is an allocation of RM1.5 billion for housing projects for the lower-income group.

Additionally, JLL noted tax reliefs will reduce the burden on individuals, increase their spending power and ensure their business continuity. Under the Budget 2022, there are tax reliefs for property owners who provide at least 30% rental discounts for tenants until June 2022 and who spend up to RM300,000 on renovations in order to keep up with standard operating procedure requirements such as good air circulation and customer/staff seating provisions.

As for the industrial sector, the RM100 million in grants for automation for over 200 firms in the manufacturing and services industry and the RM100 million in grants for Bumiputera SMEs in the aerospace industry will increase the attractiveness of the manufacturing sector to move up the value chain from labour-intensive to capital-intensive, especially in digital/high-technology industries.

Meanwhile, Lau noted that the allocation for the tourism sector may spur tourist arrivals and receipts in the hotel, retail, transportation and medical tourism industries.

Among the tourism-related measures are RM600 million allocated under PENJANA Tourism Financing and BPMB Rehabilitation Scheme, RM30 million worth of grants to 738 budget hotels under the Ministry of Tourism, Arts and Culture and more.

Plus, with the government channelling RM4.8 billion under the JaminKerja scheme and the Malaysia Short-term Employment Programme (MySTEP) aimed at creating job opportunities, the impact of lower unemployment rates could lead to a higher national disposable income, hence encouraging domestic spending which may benefit the retail and tourism sector.

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