KUALA LUMPUR: The race to attract foreign investment in Malaysian property has intensified following Thailand’s recent policy adjustments.
Sr. Samuel Tan, executive director at KGV International Property Consultants, said it is crucial for the Malaysian government to revive the local economy and entice foreign investors, especially with challenging times ahead.
Thailand’s government has introduced various measures, including reductions in property registration and transfer fees, to stimulate its residential real estate market.
Tan highlighted the significance of these measures, aimed at bolstering Thailand’s economy, the second-largest in Southeast Asia.
He noted significant changes, such as lowering transaction fees and tax deductions for home construction, along with revised rules on foreign ownership and lease extensions.
“This shows the gravity of the matter. The Malaysian government should adopt a proactive approach, and review the less favourable policies to encourage foreign property ownership. One of the most glaring is the 4.0 per cent stamp duty levied on foreigners who buy Malaysian properties. This may deter investment,” he told NST Property.
He also questioned the necessity of recent policies, such as the prohibition on Malaysia My Second Home (MM2H) residents selling their homes for 10 years, arguing that such transactions could contribute to tax revenue.
“Many foreigners sell their property because they are upgrading or leaving. Any such transactions will bring tax revenues to the coffer,” he added. Source: NST Online
