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MIPEAC calls for urgent property market stimulus

KUALA LUMPUR (April 3): The Malaysian Institute of Professional Estate Agents and Consultants (MIPEAC) has joined recent calls for the government to provide specific stimulus measures for the real estate industry in light of the prolonged slowdown and the impact of the Covid-19 outbreak and ongoing Movement Control Order (MCO) in the country.

To motivate property owners to sell this year, MIPEAC president Francis Loh said MIPEAC wants the government to consider waiving the real property gains tax (RPGT) in 2020 while from 2021, the RPGT for the disposal of properties held for over five years should be reverted to zero percent.

Currently, disposal of such properties are subject to 5% RPGT for Malaysian citizens and permanent residents, and 10% RPGT for companies and foreigners.

It also called for the Home Ownership Campaign to be reintroduced until December 31, 2021 with stamp duty exemption, while foreigners should be allowed to purchase any properties in Malaysia, except affordable housings.

Apart from these, it proposed at least 50% reduction on stamp duty for sale and purchase agreements, memorandum of transfers, loan agreements and tenancy agreements, as well as not less than 50% reduction for assessment and quit rent payments for all properties.

Meanwhile, MIPEAC also concurred with calls for property management to be included in the list of “essential services” during the MCO.

“The property management team needs to be onsite in these strata buildings to maintain the essential services therein to enable the residents to stay at home and curb the spread of Covid-19,” said Loh.

MIPEAC also hoped to see more targeted measures to support the most badly hit sectors and the small- and medium-sized enterprises (SMEs).

For one, the employer’s share of EPF and SOCSO contributions could be waived for a period of six to 12 months while income tax instalment payments under Form CP204 for the months from March to December 2020 could be deferred by nine months, and company tax rates reduced if the crisis is prolonged. The government should also consider waiving the sale and service tax from March to December 2020, it said.

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