Mah Sing Calls For Govt Measures To Support First-time Homebuyers

KUALA LUMPUR, Aug 20 (Bernama) -- Property developer Mah Sing Group Bhd hopes the government will implement additional measures to support first-time housebuyers, streamline the home-buying process and accelerate the recovery of the property industry.

Founder and group managing director Tan Sri Leong Hoy Kum, emphasised the importance of these measures, citing the significant multiplier effect on over 140 industries, which would positively impact the overall economy.

Among the proposed measures is the revival of the Home Ownership Campaign (HOC) to help homebuyers secure their homes and promote homeownership.

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"The incentives given under the HOC campaign have proven vital in helping homebuyers while reducing the housing overhang situation, such as the 100 per cent stamp duty exemption for properties priced from RM300,001 to RM1 million.

"Offering a 10 per cent discount on the property purchase price for first-time homebuyers will also help in promoting homeownership," he said in a statement ahead of the Budget 2025 announcement on Oct 18, 2024.

Leong said Mah Sing Group is optimistic about the property sector's outlook, as Bank Negara Malaysia's stable 3.0 per cent overnight policy rate and steady employment conditions instil confidence in the market, making property a strong hedge against inflation.

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Leong also hopes the government will introduce a one-off first-time home buyers’ grant of RM30,000 for properties priced up to RM500,000 to alleviate the financial burden on young Malaysians and middle-income earners, especially in urban areas where property prices continue to rise.

He also advocated for the reintroduction of tax deductions for housing loan interest, a policy initially introduced in 2009-2010.

"This tax relief provided significant financial support to first-time homebuyers by allowing a deduction of up to RM10,000 per year on interest paid on housing loans for three consecutive years.

"This measure would offer substantial financial relief to new homeowners, reducing their financial burden and encouraging more Malaysians to invest in property," said Leong.

Additionally, he urged the government to consider reducing or removing compliance costs and streamlining approval processes to ease the pressure on development costs and house prices.

Specific measures could include reducing development charges, lowering land conversion premiums and exempting utilities contribution charges.

"Simplifying regulatory processes and expediting approvals would help developers reduce project timelines and costs, making housing more affordable for the masses," he added.

Leong further proposed enhancing tax relief and grants for developers who incorporate green building technologies in their projects, driving the sector towards more sustainable practices and contributing positively to environmental conservation.

-- BERNAMA