RHB Research Institute senior analyst Loong Kok Wen said the proposed waiver of the real property gains tax (RPGT) on property owners who sell their properties after the sixth year is a good step but may not be enough to stimulate the property market as a whole

The real property gains tax (RPGT) will not be applied for properties sold after the sixth year

This is nearly 3% more than the RM322.5 billion announced for Budget 2021.

The financial, insurance, real estate and business services sector dominated the total corporate bond issuance at 55.8%. 

In 2022, consumption demand for goods and services by households is expected to be supported by expectations of improved employment conditions, while the projected growth in private investment activities and the implementation of the 12th Malaysia Plan will further augment domestic demand

The government is currently considering options to reduce the reliance on direct taxes and widen the revenue base by shifting to consumption-based tax under the Medium-Term Revenue Strategy (MTRS) framework

The growth trajectory in 2022 will also be based on expectations of further expansion in global and domestic activities, fuelled by broader vaccine coverage and a further improvement in goods trade amid a slower recovery in services trade, said the Ministry of Finance in its 2022 Fiscal Outlook report

Malaysian households borrow 41.6% more in 2021

Mean salaries and wages declined 9% to RM2,933 from RM3,224 in 2019, relegating many households’ incomes in the middle 40% (M40) category to bottom 40% (B40).

The recovery actions, the report said, consisted of negotiations with related parties, legal proceedings and civil suits, enabling the government to reduce the financial impact from 1MDB’s liabilities on the fiscal position