LBS Bina Group Bhd, which continuously strategises to help the property industry amidst the Covid-19 pandemic, has unveiled its wish list for Budget 2022 which will be tabled in Parliament on Oct 29.
A strong housing market will have a positive multiplier effect on the economy. As such, LBS proposes to the government several measures in Budget 2022 to stimulate the housing economy as the nation progresses towards recovery.
Permanent implementation of the Home Ownership Campaign (HOC)The HOC has been a welcome boost for property developers in generating property sales as buyers grew more cautious due to the pandemic.
As the country returns to pre-pandemic normality, LBS has witnessed the positive impact of the HOC on the property market and hopes the government will consider a permanent implementation of the HOC along with full stamp-duty exemption for up to the first RM1mil of the property’s purchase price.
This will ensure the entire supply chain of the construction and property development industry will continue to carry on without disruption while buying sentiment remains.
Relaxation of requirements for Malaysia My Second Home LBS has been a proud supporter of the Government’s MM2H programme as it has created a positive effect in attracting foreign nationals to settle in Malaysia.
The group hopes that the government will consider:
> Lowering the qualifying minimum income for an applicant back to the original RM10,000 per month.
> Reducing the minimum amount of liquid assets to RM500,000 compared to RM1.5mil.
> Reducing the minimum amount of fixed deposits in a Malaysian bank account to RM300,000 compared to RM1mil.
> Maintaining the duration of the MM2H pass at 10 years.
LBS believes these proposals are sufficiently stringent to attract skilled foreign nationals and ensure the continued success of the MM2H programme.
Incentives for adoption of Industrialised Building System
LBS is aware that timely handover of vacant possession for properties is an important obligation on developers’ part. Therefore, it advocates the usage of the IBS, a system which has been proven to reduce construction time and cost without compromising on housing quality.
LBS lauds the government’s initiatives in encouraging the use of IBS by providing investment tax allowances of 60% on qualifying capital expenditure incurred within five years, which can be offset against up to 70% of the statutory income of the company.
The group, however, hopes that the government will consider extending these tax incentives to include existing IBS players, rather than ring-fence the incentives to new players only.