For me, the biggest news in the Budget today was the bit slipped in: foreign buyers will now be allowed to buy urban high-rise condos above RM600,000 to ease the glut whereas previously they could only buy condos above RM1m.
Mind you, this glut arose due to some developers’ greed in overbuilding expensive properties that few locals could afford to buy.
Now, Christmas has come early for these developers.
Rather than now allowing local market forces (low demand and excessive supply) to lower prices, the government has intervened. It will now allow foreigners to come in and mop up expensive properties priced beyond the reach of most Malaysians.
Many were hoping the glut – an RM8.3bn overhang in the second quarter – would lower expensive condo prices to a more affordable level. Now, they are disappointed.
Another problem then arises: how will the government now prevent developers from building new condos priced above RM600,000 and targeted at foreigners instead of genuinely affordable homes for ordinary Malaysians?
Is this move also aimed at the excessive land reclamation – ongoing and in the pipeline – all over the place, especially the massive reclamation in Penang?
Remember, they are supposed to find 446,000 extra people to fill the proposed three artificial islands in the south of Penang Island – especially Islands B and C, the playgrounds for the wealthy. Nobody knows where these people are coming from, given the declining total fertility rate in Penang and nationwide.
The finance minister recognises this: “Today, the fertility rate in Malaysia has fallen alarmingly from 4.9 children per woman in the 1970s to 1.9 children per woman, which is below replacement level.” [The replacement level is 2.1 children per woman.]
But why should that be alarming? It means there will be less pressure to find new land and we won’t need massive land reclamation, will we? We should be happy, no?
What he didn’t say is that in Penang, the fertility rate is even lower – 1.4 children per woman. Where on earth are we going to find 446,000 people to pack into those artificial islands?
“Therefore, to assist couples seeking fertility treatment, EPF will introduce a new category of withdrawals, allowing for fertility treatment such as in-vitro fertilisation (IVF) procedure,” he said.
Still, we won’t have that many new people in Penang, let alone wealthy people.
So, with this budget announcement, will foreign buyers now be able to snap up expensive “sea-view” condos on the vast swathes of reclaimed artificial islands? Christmas has come early for developers. (Update: apparently not, as the government now says the lowering of the threshold only applies to existing condos, not those in the pipeline.)
Take a look at this as well: “New investments in international theme park projects will be given income tax exemption of 100% of statutory income or Investment Tax Allowance of 100% to be set off against 70% for 5 years”. Is this a priority for Malaysians?
The other disturbing news is that RM100m is to be allocated for the Penang Hill cable car.
“The funicular train service to Penang Hill will achieve more than 2 million passengers per year, exceeding its capacity. The Government will contribute RM100m towards the construction of a new cable car system to Penang Hill, with any additional costs to be financed by the State Government.”
Final note: does Socso really need a RM500m “rehabilitation centre” in Perak? Or wouldn’t the money be better spent on improving our public healthcare system?
Observation: Apart from some mention of renewable energy, there was no mention of building climate resilience. We act as if climate change won’t hit us. How can we be so short-sighted.
Instead, we are pandering to motorists by trying to lower tolls, including for the RM4.5bn second Penang bridge, which is still largely underused. And now the government is spending over RM6bn to acquire four highways from Gamuda, which should find the money handy in view of its “PTMP” mega projects in Penang.
Why not maintain the tolls and tax the toll concessionaires at a higher rate and use that money to improve the public transport system, starting with buses, ferries and water taxis? Ah, but that would be too cheap compared to the RM50bn “PTMP”.
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Please stop day dreaming, anil…. this decision applies to all states, so please don’t talk like its ONLY purpose is to “BENEFIT” ESPECIALLY penang
And what’s the problem with “Penang Hill packed with visitors”? Sorry I really don’t get it….Are you live in jungle? lol
You talk like foreigners want to buy house in Kelantan or Perlis….Even if those states drop their threshold to 0, no one would buy la bodo……If you are not from Penang and never see the situation, I suggest you come. Another macai from PH.
So I never see the situation? lol nonsense, please bear in mind that I have no right to ask foreigners whether want buy house or not
By your logic, if my opinion different from yours, should I say you are macai of opposition? Bodo
Developers will have no push or incentive to build affordable homes for majority of Malaysians. They will build expensive homes for higher profit margin knowing that the government will assist them to get foreign buyers. Very disappointed with PH. Looks like they are not fulfilling their election promises one after another.
Hong Kong celebrities promoting MM2H, buying Malaysian homes:
Still mabuk with susu or teh? You have been telling us that you will migrate to pas Kelantan. What are you waiting for? … $600k house in pas Kelantan will get you a landed property not pigeon hole in peng land. Why want to be a pigeon in peng land when you can be a eagle in pas land?
It’s a fact that Penang Hill top is already breaching its daily capacity for visitors with the present hill train railway. To add more is like choking a child with fast food & downing with Coke. The cable car won’t improve anything except to add to the congestion of visitors. The hill top is not a town & it’s a problem not to admit it.
Tu lang soooo free. … Daily over crowded? Or you want to kbkb with your spin?
Please stop personal attack if you do not have alternative points to challenge the opinion of others. We don’t need bully here!
hehe…i look down, look up, look left look right look under table but can not see any personal attack…so where is the personal attack ? you so geng got third eye can see other people can not see ar ??
The new budget got give money to rebuild the much requested and needed library at Bayan Baru or not?
YB Sim please respond to the residents’ request!
The Malaysian Institute of Architects (PAM) says although lowering the price threshold for foreign buyers to RM 600,000 is a good short-term measure to clear existing unsold properties, it should not detract developers from their recent focus on affordable housing for the B40 and M40 segments.
what a fantastic move..I applaud the new policy, not only the developer will be delighted, the house owner will be delighted as well, the property market will be given a boost, the Government get more revenue…as usual certain people will go green over this, but hey who cares.. these people will kpkb or finding reason to kpkb no matter what…hehe
“the developer will be delighted”, Developer Action Party (DAP) indeed… working for the people or working for the developers…
Everyone happy and all winners and no loser. Tu lang can move away from Wong feo hoong shop house and moves into a condo. Tu lang’s relative who work for developer, can still have his job and coming year end increment and bonus.
It should be begging 2 weeks for votes from Penangites, working 5 years like … idiots for greedy developers.
We have peng land kias migrate to PJ to cari makan. Worse and are you very happy peng land kias bring their food to sink land and later claim to be from sink land food?
Satu lagi projek tongkat aka maruah aka plunder in the name of race/religion:
The major factors in cost of living and poverty are corruption, incompetence, waste and brainwashing.
The Penang Hill cable car project, which received RM100mil allocation from the Federal Government in yesterday’s budget announcement, will be nothing short of world class.
Penang Hill Corporation (PHC) general manager Datuk L.L. Cheok said only the best and latest technologies in the world would be used to ensure safety and a truly pleasant experience for the passengers.
I feel sorry for [a resident’s] once tranquil cottage by the side of the hill road at the Summit. Also, your once beautiful huge flowers on the fencing may not survive the onslaught of overflowing of tourists to be brought up to the hill by the cable cars. Irresistible flowers cannot stop itchy plucking hands just like Penang Hill cannot stop the itchy minds of Komtar Developers’ Arrogant Party.
Now those animals in belum valley can have their life in peace without the noise and pollution from 4wd. Further no intrusion like a zoo being watched or observed….
Putrajaya will provide at least RM30 million in funding for Tunku Abdul Rahman University College (TARUC) from 2019 onwards only if MCA relinquishes control of the institution.
In a statement today, DAP secretary-general Lim Guan Eng said this condition must be met in order for the Pakatan Harapan administration to fulfil its commitment to institutional reforms, which include separating public funding and political parties.
GEORGE TOWN, Oct 18 — The Penang government will not follow Putrajaya’s price threshold of RM600,000 but will set its own benchmark for foreigners looking to buy property in the state.
Malaysia will continue to build smart island cities to lure foreign buyers?
Developers not interested in building affordable homes fir average Malaysians?
This is another attempt to attract hot money, “boost the economy” etc. according to the religion of neo-liberalism, while remaining servile to the Empire. At least learn from the fate of Batam Island.
All this is irrelevent under Modern Monetary Theory. Learn from China.
halo…hot money not money ? hot money or cold money…nothing worse than no money….you think you are drinking wine and want it serve at optimum temperature ? malaysia economy is dire straits and dying of thirst.. all we need is water not wine lar…
Graduates who secure a job after being unemployed for more than a year will receive a wage incentive of RM500 per month under Budget 2020.
Finance Minister Lim Guan Eng said under the [email protected] programme, graduates who secure work would receive a wage incentive of RM500 per month for a duration of two years.
Graduates can lepak for one year, take a gap year to go traveling on budget, then get the monthly subsidy when start work later?
Yes, instead of encouraging people to work and create better job opportunities. The government is somehow predicting there will be jobless people everywhere. Absolute pathetic.
What talking you? Not enough of susu or teh? How work can encourage better job opportunities? You are in upside down world? You are not in down under. Which graduate does not want to work? There is no job opportunities for graduates. Only job opportunities for 3Ds.
Government produces local graduates that have qualifications not needed by the industries, so most will end up as … drivers or … deliverymen. Need to promote TVET more since most local students are not academically good and should learn motor skills indeed.
This Finance Minister should first tell his sons to not get a job, wait for more than 1 year before starting to work in order to enjoy the generosity of PH paid from the taxes of 30% of the wealthy! Bikin lah serupa cakap!
Tu lang still think RM is bullock wheel in your days? You think the dole is enough? The money received can enable one to attend interview from Sabah to Penang for job interview as transport money. You think tony gives completely free flight? The early his work experience, his pay after 1 years time can catch with yours. You sleepy without your kopi o kau2 or too drunk with volkha. Wake up.
What lepak? another daydreamer
Looks like someone can’t differentiate between bank account and epf account, lol
Zuraida: Decision to reduce property price for foreigners wasn’t made by my ministry https://malaysia.yahoo.com/news/zuraida-decision-reduce-property-price-135224309.html “It used to be under the Economic Planning Unit but now the announcement is made by the Finance Ministry,” Malaysiakini has quoted Zuraida as saying. Zuraida said she will discuss the matter with the Finance Ministry if the need arises. “This is a proposal from the Finance Ministry… I will refer to the Finance Ministry to review and reconsider the matter if there is a necessity,” she said. So, it looks like Finance Ministry is also looking (with great trepidation) after the financial health of greedy… Read more »
Now they are saying the nee ruling only applies to existing çondos and not condos not yet built.
Easy to justify new ruling, but will there be strict monitoring of sales of existing condos (ready built or to be completely built)?
Anything can happen like the PGCAT gomen’s affordable housing schemes where developers charged B40 buyers for ki-siao priced (rm20K?) parking & (God knows what amount) renovation, which the Pg authorities closed both eyes? until public complained.
Can we trust Finance Minister to diligently applying the CAT high-principles to monitor the sales of existing condos to foreigners at reduced price???
Zuraida first said overhang properties were eye sore.
She never pressure the developers to cut price according to market forces. Sad indeed!
No need to shelter the developers!
Get them to build houses or flats that average Malaysians can afford!
It is only 11 years since the Great Recession. In “free market” countries, the finance industry hardly lends to productive industry or business; almost all its lending is for the speculative transfer of existing assets, especially real estate – Prof. Michael Hudson. The inevitable result of this, fractional banking and insider trading is poverty, economic bubbles and crashes. Guess who then gets rescued at the expense of national wealth and additional national debt.
It pays to be greedy in Malaysian property industry!
Either way of massive profiteering or overhang, the developers will have a gomen as rescuer, who cannot stomach the loss of sales tax & development taxes & what else taxes.
A new mantra from the Finance Ministry:
No Money Come, Change The Rule, Rakyat to Chi Kei Ku Chi Kei.
Not only taxes. Also political contributions, discounts for luxury houses, discounts for hotel/conference, indirect club membership… We have already heard of “I help you, you help me”.
An article in Star says only 8% of all enterprises pay tax.
You missed one: selling properties at below market price @ willing seller, happy buyer!!! People are supposedly stupid for not smelling anything!
RM600K condos cheap cheap for Hong Kong migrants influx.
Hong Kongers find freedom in Penang, then stand up for Anil’s justice eventually?
Why not? Docs charged patients for rm1. Lawyers charged client at jump down suicide price. Food sellers giving free food to some. For you, everyone have to charge you high as you are lansee and kbkb.
why har? how come some people can afford hao lian full of bin chui 4WD and some only can afford motorbike …why earn so much?? why your business charge so much? why ask for so much salary..? so greedy ar? developer greedy and you not greedy ?
earn just enough to get yourself a kapcai enough lar…why 4WD so greedy…?
Clowns on both side of the parliament, each and every of them is trying to outdo each other with more tongkat policies….DAP xmaluka, 42 MPs no voice.
We elect you and tu lang to Parliament and appoint you as opposition leader. You can get perks private toilet with golden bowl.travel allowance and office with … staff. Or you chicken out? Yes or no?
Tongkat has been upgraded into electric wheelchair courtesy of DAP. If there is an overhang issue, why still built more? Anil, DAP has ties with the developers…
DAP [email protected] Road (allegedly) donated by friendly developers?
Anything can happen to change the minds of DAP politicians with a mantra: No Money, No Talk.
Why not you report to new chief of macc? She no play play. But you main main. But you dare not to main with her. Just a coward and hide under questioning.
Immediately after 308, many developers liked to cosy up to the winning political party. One way is to donate money or properties. This is nothing to hide nor fear of MACC unless one is guilty conscious. The building is there, how to hide?
Only the private T&C is not open to public scrutiny.
Willing to donate, more than happy to accept!!!
Yes the building is there. You are there too. The party is there too. Macc new chief is there too. So why main main here? She is serious but you no in main main kbkb….
What happened to the “free” market that capitalists claim to love so much? In fact, it is welfare for the wealthiest, and double-talk for the rest, just as elsewhere.
yeah…where is the free market?…raising minimum wages is no free market..you want to kp about that as well? BTW， there is increase of tax rate from 28 to 30% for the rich taxpayer in case your are still blur blur …so not only don’t double talk most importantly don’t talk fake ,don’t talk rubbish,don’t talk nonsense…