#BUDGET 2011* Highlights


KUALA LUMPUR: Malaysia's Budget 2011 was tabled in Parliament by Prime Minister Datuk Seri Najib Abdul Razak on Friday Oct 15.  Below are proposals related to the property-sector.

* Proposed stamp duty exemption of 50% be given on instruments of transfer of residential properties, not exceeding RM350,000 for S&P must be executed between Jan 1, 2011 to Dec 31, 2012. Apply to first residential property purchased by a Malaysian citizen and it can be claimed once only within the exemption period. 

* Stamp duty exemption of 50% be given on loan agreements for residential property priced not exceeding RM350,000.Apply to first residential property purchased by a Malaysian citizen and it can be claimed once only within the exemption period.

* 'Skim Rumah Pertamaku' or 'My First Home Scheme' through Cagamas Berhad to assist those with household income of less than RM3,000 per month to buy a house. Scheme would provide a guarantee on down payment of 10 per cent for houses costing below RM220,000. The house buyers will obtain a 100 per cent loan without having to pay the 10 per cent down payment.

* 'Skim Pembiayaan Perumahan Kos Rendah' or the 'Low-Cost Housing Financing Scheme' with an allocation of RM50 million, managed by Bank Simpanan Nasional. The scheme is open to all Malaysian permanent estate workers to assist them to obtain housing loans up to a maximum of RM60,000 for the purchase of low-cost houses at four per cent interest rate and a repayment period of up to 40 years.

* Allocation of RM568 million to build 300 units of affordable homes under the 'Projek Bantuan Perumahan Bandar' or 'Urban Housing Aid Project', 79,000 units under the 'Program Perumahan Rakyat' or 'Public Housing Programme' and 8,000 units under the 'Projek Bantuan Rumah Sewa' to assist the poor and low-income group

* A 2,680-acre mixed development project to be undertaken by the Enployees Provident Fund (EPF) including affordable houses, commercial, industrial and infrastructure facilities offices at a cost of RM10 billion at the Malaysian Rubber Board land in Sungai Buloh to be completed by 2025

* A RM5 billion landmark integrated development known as "Warisan Merdeka" developed by Petronas to be completed by 2020.It will feature a 100-storey tower to be completed by 2015, the tallest in Malaysia. The adjacent Stadium Merdeka and Stadium Negara will be retained as heritage buildings.

* Construction of new highways including the Ampang-Cheras-Pandan, Elevated Highway, Guthrie-Damansara Expressway, Damansara-Petaling Jaya Highway, Pantai Barat-Banting-Taiping Highway, Sungai Dua-Juru Highway and Paroi-Senawang-KLIA Highway

* Allocation of RM850 million for infrastructure support for corridor and regional development. Iskandar Malaysia (RM339 million), Northern Corridor Economic Region (RM133 million), East Coast Economic Region (RM178 million), Sarawak Corridor of Renewable Energy (RM93 million), Sabah Development Corridor (RM110 million).

* Bumiputera Property Trust Foundation (BPTF) to launch a syariah-compliant Bumiputera Property Trust Scheme of RM1 billion 

* RM85 million to provide infrastructure facilities to facilitate construction of hotels and resorts in remote areas with the potential to attract tourists.

* RM50 million to construct several shaded walkways in the KLCC-Bukit Bintang vicinity.

* Development of world's first integrated eco-nature resort at a cost of RM3 billion by Nexus Karambunai in Sabah to commence next year.

* Implementation of the Feed in Tariff (FiT) mechanism under the Renewable Energy (RE) Act to allow electricity generated from RE by individuals and independent providers to be sold to electricity utility companies.

* Pioneer Status and Investment Tax Allowance for the generation of energy from renewable sources and energy efficiency activities to be extended until Dec 31,2015.

* Import duty and sales tax exemption on equipment for the generation of energy from renewable sources and energy efficiency to be extended until Dec 31, 2012.

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