In light of Malaysia’s robust economic performance and buoyant property market, Mah Sing, under the leadership of Tan Sri Dato’ Sri Leong Hoy Kum, Founder and Group Managing Director, has outlined a strategic wishlist aimed at bolstering the country’s housing sector and fostering economic growth. As Malaysia’s economy expanded by 5.9% in the second quarter of 2024, driven by increased household spending and favourable labour market conditions, Mah Sing underscores the pivotal role of government support in sustaining this momentum.
The property landscape has shown significant resilience, with over 104,000 transactions recorded in the first quarter of 2024—a 17% surge from the previous year—indicating robust market demand and economic vitality. Against this backdrop, Mah Sing emphasizes the importance of proactive governmental measures to sustain the sector’s growth trajectory and support broader economic recovery efforts.
Key Proposals for Budget 2025
Revival of the Home Ownership Campaign (HOC)
Mah Sing advocates for reinstating the Home Ownership Campaign, citing its pivotal role in facilitating home purchases and reducing housing overhang. The proposal includes reinstating incentives such as a 100% stamp duty exemption for properties priced between RM300,001 to RM1 million and offering a 10% discount on property purchase prices for first-time homebuyers.
One-off First-Time Home Buyers’ Grant and Lower Fixed-Rate Financing
To alleviate financial barriers for first-time buyers, Mah Sing proposes a one-off First-Time Home Buyers’ Grant of RM30,000 for properties priced up to RM500,000. Coupled with lower fixed-rate financing options, these initiatives aim to enhance affordability and stability in urban housing markets.
Re-introduction of Tax Deduction for Housing Loan Interest
The reintroduction of tax deductions for housing loan interest is highlighted as a critical measure to support new homeowners. Previously implemented from 2009-2010, this policy allowed deductions of up to RM10,000 per year on interest paid for housing loans over three years, significantly easing financial burdens and encouraging property investments.
Reduction of Compliance Costs and Streamlining Approval Processes
Mah Sing urges the government to reduce compliance costs and streamline approval processes to mitigate development expenses and housing costs. Proposed measures include reducing development charges, lowering land conversion premiums, and exempting utility contribution charges. Simplifying regulatory frameworks would expedite project timelines and enhance affordability for homebuyers.
Incentives for Green Building and Sustainable Development
In alignment with Malaysia’s environmental goals, Mah Sing proposes enhanced tax reliefs and grants for developers adopting green building technologies and sustainable practices. These incentives aim to accelerate the adoption of eco-friendly construction methods, supporting Malaysia’s commitment to carbon neutrality by 2050 and promoting sustainable urban development.
Mah Sing’s Budget 2025 wishlist underscores the synergistic relationship between robust governmental support and sustained economic growth in Malaysia’s property sector. By implementing these proposals, the government can stimulate homeownership, reduce housing affordability barriers, and foster a resilient property market that contributes positively to Malaysia’s economic development and societal well-being.
