Property developer, LBS Bina Group Berhad (LBS) releases their budget wish list, nearing the budget reading this month.
Focussing on six points of proposal, LBS aims to empower the rakyat with better access and opportunities to owning a home.
Beginning with proposing the lowering of personal income tax rates, the property developer believes the additional margin in income can be used to ease the burden when purchasing homes. LBS also suggested lowering corporate tax to reduce the burden of businesses, particularly developers. The company believes this will allow property developers to reinvest in the business, improving productivity, increasing job opportunities, as well as the quality and quantity of developments.
Second proposal, LBS hopes for the easing of cooling measures on the property sector, such as the Real Property Gains Tax (RPGT). The company notes that relaxing the terms of the RPGT will encourage more Malaysians to invest or upgrade their homes. LBS also suggests lowering the minimum threshold from RM1 million to RM500,000 for foreigners looking to purchase homes in Malaysia, in order to help boost local property market.
Another proposal calls for more flexible end financing guidelines and additional incentives by the Government and Bank Negara. Many first-time home buyers still find it challenging to meet the strict terms for loan approvals. In light of escalating cost of housing, LBS also proposes the expansion of the stamp duty waiver to include properties priced between RM300,000 and RM500,000. LBS believes the move will help lower the cost of property transactions and encourage the rakyat to make the first move towards home ownership.
Fourth proposal relates to Industrialised Building System (IBS). LBS would like to see the Government grant incentives to encourage developers implement the IBS into their practices. LBS observes proven result in reduced manual labour required at construction sites, as well as neater and cleaner construction sites with minimal congestion. The IBS also improves quality control as processes are streamlined, minimising waste, and reducing construction time by two to three months, allowing an earlier return of investment.
LBS’s fifth proposal is for the Government to consider setting up a special fund for developers, with an interest rate of 4 per cent, to encourage more developers, especially smaller players, to build more affordable homes.
Fianlly, LBS hopes the Government will consider incentives for township developers. Township developers generally invest more in the overall planning, in order to provide convenience by shortening travel time and opens opportunities to business. The property developer believes incentives will encourage more developers to take on more township developments.
“As a home-grown developer, LBS has played and continues to play an active role in supporting the nation’s agenda of helping the rakyat realise their dreams of having their own home. We believe our proposals will greatly benefit home buyers, particularly first timers, the property industry and the Malaysian economy as a whole. So we sincerely hope the Government will consider our proposals in the upcoming Budget 2018,” said LBS Bina Group Berhad Group Managing Director, Tan Sri Lim Hock San.