Knight Frank Malaysia Shares Budget 2023 Wishlist

With Budget 2023 scheduled to be tabled this week, Keith Ooi of Knight Frank Malaysia shares a Pre-Budget 2023 Wishlist:

1.      Long-term measure: Address climate change

·        We propose incentives to be introduced to property owners, landlords and developers who are aligned with the nation’s target of becoming a “net zero” nation by 2050. We encourage an extension of existing incentives to incorporate tax reliefs / grants to industry players who include green features into their developments, especially renewable energy like solar panels and water harvesting, as well as sustainably-built properties from timber and low-carbon cement in place of high emission materials.

2.      Immediate measure: Encourage home ownership and accommodate hybrid work policies

·        We are in an environment with increasing inflation, rising construction costs and higher interest rates. The Budget 2023 should address this impact, in particular to both the B40 and M40 groups.

·        We propose that the stamp duty waiver is extended across a wider spectrum of residential properties priced at RM1 mil and below. Specifically, to ALL residential property purchases, not just first-time homeowners, in both the primary and secondary markets. The existing incentives already address first-time homeowners, and this proposal will allow for owners to upgrade to accommodate for more work / study space.

·        In major cities, we have also seen an adoption of hybrid work modes in a large chunk of the corporate sector. We further encourage the government to embrace the WFH / WFA policy, and allow for individual tax rebates on internet connection and computers, purchase of furniture / equipment in  the creation of a workspace at home; and perhaps to even consider tax rebates for companies practising hybrid work policies.

3.      Ongoing measure: Continuous FDI

·        Malaysia needs to bring back investors’ trust and faith in our economic growth, in order to see recovery across all sectors. We hope for Budget 2023 to outline clear and consistent policies in driving economic investments into our country, and encourage all direct measures to revitalise and sustain the growth of the property sector.

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4. something about houseing

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Disclaimer: Any opinions expressed are entirely the author’s own and do not necessarily reflect the views of PropertyGuru and its entities.

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