KUALA LUMPUR, Oct 30 ― The removal of the Real Property Gains Tax (RPGT) will help invigorate the Malaysian property market and eventually translate into a positive multiplier effect on the economy, according to Malaysia Real Estate and Housing Developers’ Association (Rehda).

Its president, Datuk Soam Heng Choon said Rehda is appreciative that the government has taken into account its proposal to abolish the RPGT on homes disposed of on the sixth year onwards by Malaysians and permanent residents in the country.

"The RPGT was initially introduced to curb speculation when the property market was buoyant but under the current soft market conditions, we welcome the government’s move for the removal,” he said in a statement.

Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz, when tabling Budget 2020 in the Dewan Rakyat yesterday, said the government will no longer impose the RPGT for property disposals by individual citizens, permanent residents and other companies starting from the sixth year onwards.

He also said the government will continue implementing housing projects, especially for the low-income earners, with a total allocation of RM1.5 billion.

Starting next year, the government will also provide a RM2 billion guarantee to banks via the Housing Credit Guarantee Scheme to provide gig workers, micro-entrepreneurs and farmers with access to financing, said Tengku Zafrul.

Soam said the allocation in Budget 2022 will encourage more from the group towards home purchase as they now have easier access to home financing.

"In conclusion, whilst we appreciate the efforts and consideration taken by the government to prepare for an all-inclusive and balanced Budget 2022, we were actually hoping for other positive measures towards a swifter recovery of the property market,” he said.

Meanwhile, National House Buyers Association (HBA) honorary secretary-general Datuk Chang Kim Loong said the allocation in Budget 2022 to build comfortable and quality homes for the lower-income segment is a noble aspiration by the government.

"This will ensure that every rakyat including the lower-income segment has access to comfortable and quality housing.

"HBA hopes that proper planning, allocation, distribution and execution is done to ensure that these affordable properties are built for the targeted groups,” he said, adding that the housing credit guarantee scheme should be limited to first-time house buyers and only for affordable properties. ― Bernama