MRMA urges continuation of REIT tax framework to sustain sector growth

KUALA LUMPUR (Feb 12): The Malaysian REIT Managers Association (MRMA) has appealed for the continuation of the withholding tax framework for real estate investment trusts (REITs), calling it a critical support mechanism as the sector enters a new growth phase.

In a press statement issued on Wednesday, the association described the framework as a strategic instrument rather than preferential treatment, citing its role in enabling the REIT sector to contribute more effectively to national economic goals.

“We see this not as a request for preferential treatment, but as a partnership opportunity to build a world-class capital market. The current framework has been the bedrock upon which we have built a RM60 billion industry that supports real estate development, construction and countless service sectors. Its continuity would signal confidence and enable us to scale new heights,” said MRMA chairman Leong Kit May in the statement.

She highlighted that Malaysia’s REIT market currently has a capitalisation of US$13 billion (RM51 billion), representing around 3% of the total domestic stock market.

By comparison, Singapore’s REIT sector comprises 10% of its market capitalisation and continues to benefit from supportive tax policies.

The association stressed that the framework enhances Malaysia’s investment appeal by offering competitive yields and attracting long-term foreign capital.

It also enables the recycling of capital into strategic sectors such as digital infrastructure, logistics and green buildings.

MRMA added that the framework contributes to the maturity and resilience of Malaysia’s capital markets.

It said it remains committed to a constructive dialogue with the Ministry of Finance, Securities Commission and other regulatory authorities.

The association also offered to provide relevant data or analysis to assist a review of the framework.

MRMA expressed hope that the government would reconsider any move to revise the tax policy in order to preserve the sector’s stability and growth.

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