PETALING JAYA: There should be more flexible schemes for the projects of private developers, according to Mah Sing group managing director Tan Sri Leong Hoy Kum.

In a statement that detailed Mah Sing’s wishlist for Budget 2018, Leong said PR1MA’s Skim Pembiayaan Fleksibel (SPEF) allows buyers to have higher loan eligibility with fixed payment for the first five years that is only exclusive to PR1MA’s project.

“Such flexible schemes, if extended to private developers with projects where the houses are priced below RM500,000 and to the first-time homebuyers, will enable more buyers to own a home.

“Continuing the MyDeposit Scheme and reintroducing My First Home Scheme would also be good for homebuyers. Rather than having more consumption loans for cars and other debts, it is better for individuals to purchase a home which will appreciate in value in the long run,” said Leong.

Moreover, he said the Government should continue to waive off the stamp duty expenses for homes below RM300,000 to lessen the burden for first-time homebuyers.

The company also expressed hope that the Government will be able to loosen mandatory obligations to ease the developers’ burden on compliance costs such as contributions for utilities like TNB, Syabas and IWK, developer charges, land conversion premiums, infrastructure contribution, surrender of land and construction of facilities.

One of the suggestions included lowering the price threshold for foreigners from RM1mil to RM500,000. This will promote more foreign investment in Malaysia.

In the statement, Leong said that the majority of the states in Malaysia have a threshold of RM1mil while Penang Island and parts of Selangor have a threshold up to RM2mil for foreign buyers.

He added that Malaysia’s property market is very domestically driven compare to Hong Kong and Singapore. The foreign buyers in Malaysia are only between 2% to 3%.

“Therefore, we should promote more foreign investments in Malaysian properties as it is also has a multiplier effect in boosting the property industry as well as the economy of the nation,” said Leong.

Leong also said that the developer should be able to claim GST input tax credit for affordable residential projects to lessen developers’ burden.

He also urged the Government to provide tax relief of 10% to 20% for private developers. It will encourage the developers to build more affordable homes, especially in areas that are experiencing a shortage of homes.

He said that the lowering of personal income tax rate for individuals would also allow them to have more disposable income which can be used for investments.

Lastly, Leong suggested that the Government should consider revising the percentage of funds in Employees Provident Fund (EPF) Account One and Two.

“By raising funds in Account Two from the current 30% to 40% of EPF balances, EPF contributors can have more funds in Account Two to pay the downpayment of their property purchase and thus reduce the housing loan and monthly instalments,” said Leong.