RPGT has little immediate impact on MM2H

KUALA LUMPUR: It is business as usual for promoters of the Malaysia My Second Home (MM2H) programme, post the government’s announcement recently that a 5% Real Property Gains Tax (RPGT) will be levied from Jan 1, 2010, irrespective of when the property was acquired.

Director of International Placement House (MM2H) Sdn Bhd Joseph Fernandez told he has not received any feedback from clients on the RPGT. “I think for foreigners, this is a small bite; it is the locals who will be more affected.” However, he noted, the RPGT could fan foreigners’ perception of a flip flop in Malaysia’s policies.

Poloair Consultancy (MM2H) Sdn Bhd executive director Adrian Wang concurred and said some of his clients were “quite annoyed with the constant change of policies as it confuses them”.

Metro Homes (MM2H) Sdn Bhd director See Kok Loong said he has not seen any significant negative impact on the programme but cautioned that Malaysia could lose out in the long run to countries such as Singapore, where no such tax existed. “But there is not much we can do but learn to adapt since the government has already said they will proceed with the tax,” added See.

Ck-Ten (MM2H) Sdn Bhd director and committee member of MM2H Agents Association John Ching said while there was dissatisfaction voiced by some programme applicants, there was no major complaint received and since there was no bubble in the Malaysian property market, the RPGT would not trigger any crash.

Ching said the MM2H Agents Association would be meeting with the Tourism Minister soon and a discussion on the impact of the RPGT on MM2H is on the agenda.
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