27 February – Tun Dr Mahathir recently announced a RM20 billion Economic Stimulus Package to ensure risks to the economy due to COVID-19 can be addressed effectively. Here’s what Mah Sing’s spokesperson, Tan Sri Dato’ Sri Leong Hoy Kum, Mah Sing’s Founder & Group Managing Director has to say about the government initiative.
We appreciate the government’s move in introducing the RM20billion Stimulus Package 2020 to stimulate economic growth and boost business and consumer sentiments. The property market has a multiplier effect on more than 140 industries and is very much reliant on domestic consumption. Thus, the introduction of the Stimulus Package is timely, as it will spur improved consumer confidence, which is a key factor in property purchase.
We appreciate the Government’s move to reduce the Employee Provident Fund’s minimum contribution rate by 4% from 11% to 7%, which will potentially unlock up to RM10 billion worth of private consumption. This will enable consumers to have extra spending power, which in turn would boost domestic expenditure and consumer sentiment. This includes spending on purchase of a property particularly in the affordable segment targeted at first-time homebuyers. Our newly launched ‘Eazy to Own’ campaign ties in well with this move.
The 15% discount in monthly electricity bills for the tourism sector including hotels and shopping malls is a direct injection to ease these businesses’ cash flow, which we appreciate for our Ramada by Wyndham Meridin hotel and Star Avenue shopping mall. Additionally, we laud the government’s move to further aid the tourism sector with the 6% service tax exemption for hotels, the RM100 travel vouchers for Malaysian citizens, along with the personal income tax relief of up to RM1,000 for domestic travel.
We look forward for more incentives and support from the government in stimulating the overall economic activity. The Group is looking forward for more property-friendly incentives to encourage home ownership. As affordability remains as the key concern for homebuyers today, we hope the government can consider more relaxation measures such as speedy implementation for the RM600,000 threshold for foreigners to buy high-rise properties, waiver on the Real Property Gains Tax, and relaxing the current regulation of property sector. We are also hopeful for the continuation of the Home Ownership Campaign or an introduction of a new scheme with more incentives such as higher margin of financing, tax relief and lower interest rate for first-time buyers, reinstate maximum loan tenure to 45 years, as well as allowing other income sources for loan applications.