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Mah Sing’s response to Budget 2021 announcement

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malaysia-budget

6 November – Mah Sing Group Berhad (Mah Sing) welcomes the Budget 2021 announcement, themed “Teguh Kita, Menang Bersama” which displays the Government’s unwavering dedication and continuous effort in rejuvenating the Malaysian economy through three key objectives – people’s wellbeing, business continuity and economic resilience.

The newly announced initiatives and measures would enable various industries to recover, and enhance the Rakyat financial ability to weather through the challenges due to the unprecedented pandemic.

The property industry provides critical multiplying effect to the economy, impacting more than 140 industries. We believe with the new incentives offered by the government to stimulate the property market, this will eventually benefit the country’s economy as a whole.

1-Encouragement of home ownership and full stamp duty exemption

We commend the Government for encouraging home ownership through several initiatives announced in Budget 2021 as this would help to alleviate the people’s burden in owning their homes, which indirectly stimulate the property market.

The announcement of full stamp duty exemption on the instruments of transfer and loan agreement for the purchase of first residential properties worth up to RM500,000, starting from 1 January 2021 until 31 December 2025 will definitely help to boost home ownership within these 5 years, especially for first time home buyers.

Mah Sing’s products positioning is in line with the government’s direction as 51% of our 2020 sales target are within this range, and 63% of our home buyers are below the 35 years old bracket, which are likely to be first time home buyers.

Mah Sing will also continue to align its strategy to offer affordably priced homes at strategic locations to cater to the needs of the current markets. In addition, Mah Sing will continue to assist homebuyers through our existing attractive sales campaign such as Mah Sing’s Eazy to Own Campaign, where home buyers can benefit from HouzKEY, offered via a collaboration with Maybank Islamic. This innovative home financing solution enables home buyers to own their ideal home today with easy entry and low monthly instalments.

2-Developer Interest Bearing Scheme (DIBS)

While the implementation of DIBS was not announced in Budget 2021, we hope the government will again reconsider them in the future.

Mah Sing is open and ready to discuss with the government on the matters with other relevant stakeholders and will look forward for a win-win outcome which will benefit all parties.

3-Withdrawal from EPF Account 1 and Reduction of EPF Contribution Rate for Employees

We welcome the government’s move to allow eligible EPF members to withdraw as much as RM500 per month, amounting up to RM6,000 for 12 months from their EPF Account 1 as this is a well-timed decision to assist those who has lost their job, especially during such a challenging and difficult time.

The announcement on the reduction of minimum employee contribution rate for EPF, from 11% to 9% for 12 months starting from January 2021 will also increase the take-home pay for the Rakyat and ease their financial burden, allowing them to have more cash flow to spend on daily necessities.

4-Continuation of Transport Infrastructure Projects

We applaud the government for allocating RM15 billion in 2021 for the transport infrastructure projects such as Lebuhraya Pan Borneo, Gemas-Johor Bahru Electrified Double-Track Project (EDTP), Klang Valley Double Tracking Phase 1 (KVDT1), Johor Bahru-Singapore Rapid Transit System (RTS) and Mass Rapid Transit Line 3 (MRT3) in Klang Valley, which would indirectly benefit many sectors including the property industry.

As for Mah Sing, some/several of our projects are located nearby and this would help to improve the location’s attractiveness and desirability to live.

Mah Sing through its long-time strategic partner, Mah Sing Foundation, also welcomes the initiatives introduced by the Government to empower the B40 communities and underserved children through education, health and wellbeing and community development.

5 – Education Incentives for B40 Communities

Mah Sing Foundation lauds the Government’s allocation of RM500 million for the JENDELA initiative where digital connectivity for 430 schools across Malaysia will be improved, along with providing laptops to 150 thousand students through the ‘Tabung CERDIK’ and the ‘Program Jaringan PRIHATIN’. With this assistance, the B40 families will be able to reduce their financial burden by getting the device and internet connection for the online classes of their children, and every child would have the opportunity and access to learning in this new norm.

Adding to that, the Government’s allocation of RM800 million for school upgrading and maintenance and another RM725 million in the upgrading of building and infrastructure for schools that are in dire need will benefit student across Malaysia especially those who are from the B40 families.

6 – Healthcare Incentives for B40 Communities

In line with the Government’s announcement, Mah Sing Foundation applauds the Government initiative to expand social protections as a financial assistance for the B40 group through a voucher programme for insurance products such as takaful and personal accident, as well as the upgrading of the Bantuan Sara Hidup (BSH) to Bantuan Prihatin Rakyat (BPR) with better assistances. All these initiatives, including the programmes to address mental health issues, violence, abuse and substance abuse also will be positively impacting the B40 community greatly.

We also appreciate the government’s assistance to our frontliners by providing them with a one-off RM500 allowance, as a recognition for their sacrifices in handling the Covid-19 pandemic since early of 2020. We are extremely grateful and thankful for their contribution to all Malaysians.

With the new incentives, assistances and financial aids in place, the children and B40 communities will be better off financially. Mah Sing Foundation will assist and work together with other NGOs and government agencies to leverage on the partnerships and reach out to more needy groups.

Information:  Mah Sing has 50 projects across Malaysia, and 51% of its 2020 sales target are from residential properties below RM500,000.

Under RM500,000

Central Region:

  • M Adora, Wangsa Melawati (high-rise residential, priced from RM468,000)
  • M Luna, Kepong (high-rise residential, priced from RM 385,000)
  • M Oscar, off Kuchai Lama (high-rise residential, priced from RM 499,000)
  • M Vertica, Cheras (high-rise residential, priced from RM480,800)
  • M Arisa, Sentul (high-rise residential, priced from RM320,000)
  • Cerrado Residential Suites, Southville City, KL South (high-rise residential, priced from RM398,000)
  • Sensory Residence, Southville City, KL South (high-rise residential, priced from RM470,000)

 Southern Region:

  • Meridin Bayvue Serviced Apartments, Sierra Perdana, Johor (high-rise residential, priced from RM408,000)
  • Meridin @ Medini Hotel Suite, Bandar Medini Iskandar, Johor (Hotel Suites, priced from RM332,000)
  • Meridin @ Medini Executive Suites, Bandar Medini Iskandar, Johor (SOVO, priced from RM319,000)
  • Orchid in Meridin East, Pasir Gudang, Johor (2-storey link homes, priced from RM463,000)
  • Hazel in Meridin East, Pasir Gudang, Johor (2-storey link homes, priced from RM487,000)
  • Acacia in Meridin East, Pasir Gudang, Johor (2-storey link homes, priced from RM498,000)

Upcoming launches

  • Parcel 2H in Meridin East, Pasir Gudang, Johor (2-storey link homes, indicatively priced from RM461,000)

 Under RM300,000

Central Region:

  • Cendana RSKU@M Residence 2, Rawang (priced at RM170,000)
  • Sendayu RSKU@M Aruna, Rawang (priced at RM200,000)
  • Sensory Rumah Mampu Milik, Southville City, KL South (high-rise residential, priced at RM270,000)

Southern Region:

  • Rumah Mampu Milik Johor, Meridin East, Johor Bahru. (Community townhouse, priced at RM150,000)
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