Govt to monitor effect of new RPGT regime in 1H14

PETALING JAYA: The government will be monitoring the property market closely when the new real property gains tax (RPGT) regime is enforced on  Jan 1 next year, said Deloitte tax leader Yee Wing Peng.

“Perhaps in six months [from the commencement of the RGPT regime], we would be able to better gauge how the market is responding to this,” Yee told the press at the tax forum, Deloitte TaxMax 2013, yesterday. 

He anticipated that within that time frame, the government would be able to determine whether or not the increase in RPGT is a good enough measure to cool down the market and curb speculation. 

Yee said the volume of property sales and purchase transactions would be a good indicator of the market response to the new regime. 

The tax leader suggested an increase in stamp duty by one to two percentage points to bring the stamp duty to 4% to 5%, as a measure to help cool the property market even further. 

“If the property market remains hot, and speculation cannot be curbed, what the government can do is to introduce higher stamp duty on the buyer,” he said. 

Another measure that can be introduced is to impose stamp duty on the seller as well.

According to Yee, Singapore is an example where non-resident sellers have to pay a stamp duty of up to 17% for disposing of their property within a year.  

“These are flexible measures that the government can introduce depending on the circumstances and the state of affairs of the property market at a particular time,” said Yee. 

The forum also featured speakers from Iskandar Regional Development Authority (IRDA), the Performance Management and Delivery Unit (Pemandu) and the European Union Malaysian Chamber of Commerce and Industry (EU MCCI).

At the forum, senior vice-president, economics and investment for IRDA Gan-Low Mei Leong commented that the new RPGT regime is a positive move to curb speculation and to bring real investors into the Iskandar region. 

She pointed out that while in the past property buyers would be looking at the combined salaries of themselves and their spouses before deciding to buy property, the trend over the past two to three years was to buy many properties at one time to profit from the resale value once the project is completed. 

“We want to curb the speculation so there will be time for new players to come in, and more opportunities for real investors to buy. We look at it as something good and a breathing point for Iskandar Malaysia,” said Gan-Low. 


This article first appeared in The Edge Financial Daily, on November 13, 2013.

City & Country: Will GST exemption translate into cheaper homes?

ANTICIPATION is high that an increase in the Real Property Gains Tax (RPGT) and a ban on the developer interest-bearing scheme (DIBS) will bring down property prices. But there has been little focus on the government’s move to exempt residential properties from the Goods and Services Tax (GST), which will replace the current sales and service tax from April 2015.

That the government will revise the RPGT upwards in Budget 2014 was a foregone conclusion that generated many a discussion. However, the effectiveness of the new RPGT structure, and the DIBS ban, in forcing property prices down to more affordable levels remains to be seen because, ultimately, pricing is a function of supply and demand.

In the meantime, let’s focus on the exemption of residential properties from GST and its impact on homebuyers. Will prices dip or at least remain unchanged?

Unlikely. Why? First, there is a need to understand GST and the three supplies that come under it — standard-rated supply, zero-rated supply and exempt supply.

Simply put, standard-rated supply refers to goods and services that are subject to GST at a standard rate (which will be 6% based on the Budget 2014 announcement).

What this means: GST is collected by the businesses and paid to the government. Businesses providing standard-rated supplies are required to charge a GST of 6% on products or services provided to customers. This is known as the output tax. They themselves would have paid for supplies (goods or services) that are subject to GST, which is known as the input tax. If the input tax of the businesses is bigger than their output tax, they can recover the difference from the government.

Under zero-rated supplies, businesses are eligible to claim from the government input tax credit incurred from acquiring supplies to produce such goods or services. This means the consumer does not pay any GST.

Yam: There needs to be engagement and clarity, so that there will be no hiccups come April 2015

As for exempt supplies — the category in which residential properties have been placed — they are not subject to GST. Businesses providing exempt supplies cannot charge their customers GST on the end product (in this case, the residential property), but the developer of the residential property is not eligible to claim input tax credit from the government on GST paid to develop the project.

This being the case, the developer will be saddled with extra costs due to the 6% GST that is payable on nearly all its inputs (construction cost, services, materials and so on) which it cannot claim from the government. Being business entities, they would pass on the non-claimable input tax to the consumer (read: residential property buyer).

The effective percentage increase in cost to the developer due to the non-claimable input tax credit is not immediately clear.

Yes, a developer currently pays a certain amount of sales and service tax on, for example, consultant fees, but that would be a fraction of the input tax credit for, for instance, the cost of construction and infrastructure, which, incidentally, could account for up to 40% or 50% of the total cost of a development.

So, how can housing prices dip?

Commercial properties, on the other hand, come under standard-rated supplies. But will serviced apartments, which are, for all intents and purposes, dwellings built on commercial land, be classified as residential or commercial properties for the purposes of GST?

Then, there are the mixed-use developments that comprise residential, commercial and industrial offerings. Developers will face challenges in apportioning input tax credits on indirect costs. Should it be based on the gross built-up area? Or perhaps even on employee time for different aspects of the project.

Whatever the model, variations in the numbers can be expected as the project gets underway and this could stretch for 5, 6 or even 10 years, depending on the project’s size and market conditions.

Inevitably, developers will need to spend a hefty sum on GST compliance. Now, who will pick up the tab for this added cost? The consumer, of course.

Still, to echo Real Estate and Housing Developers’ Association Malaysia president Datuk Seri Michael Yam, the government cannot be expected to declare property development a zero-rated supply. Indeed, development companies are paying some form of sales and service tax even now.

“We support GST. Because the business of property development is complex, there needs to be engagement and clarity, so that there will be no hiccups come April 2015,” Yam says. “Otherwise, the experience could be hellish …”

Level the playing field

If you had bought a property last year, you would have signed on the dotted line with the understanding that whatever gains you make will be subject to a 10% or 5% tax if you were to dispose of it in the second or third year of ownership.

The government’s moves may not result in lower property prices

However, with the new RPGT structure that is effective from Jan 1, 2014, you will be taxed 30% on your gains should you sell the property within the first three years of ownership.

If indeed the sole intention of the government in raising the RPGT is to curb speculation, is there a need to render it retrospective? While this is not a new practice, what would stand Malaysia in good stead would be to level the playing field and make it transparent so that investors are bound by the RPGT that existed at the point of investment.

According to Rehda, the government collected a total of RM540 million from RPGT in 2011; RM300 million in 2010; RM42 million in 2009 and RM110 million in 2008.

Another move by the government to curb speculation is the abolition of DIBS. Developers are also required to be transparent on their pricing. In addition, foreigners can only buy properties priced at least RM1 million — up from RM500,000 before.

In all these moves, Yam sees the government equating the rise in property prices with speculation, and he begs to differ.

For instance, he says, the secondary market accounted for the bulk or RM50 billion of the RM68 billion worth of residential property transactions last year. Speculators tend to focus on new launches.

The minimum entry level of RM1 million for foreign buyers should also be location-specific, Yam says.

For instance, a Malaysia My Second Home participant wishing to settle away from the property hot spots will not require a RM1 million home, which would be too spacious for his or her lifestyle.

“We have 26,000 acres to build in Iskandar Malaysia. Do we or don’t we wish to roll out the red carpet for foreign buyers?” asks Yam.

And, oh, for those who are relieved that Budget 2014 was silent on higher stamp duties on property purchases, it may be too soon to celebrate. The government does not need to wait until Budget 2015 to review this.

Au Foong Yee is managing director of The Edge Communications Sdn Bhd


This article first appeared in The Edge Malaysia Weekly, on November 4, 2013.

Business as usual in property market

The anti-speculation measures outlined in Budget 2012 have curbed the activity of ‘flippers’, but their real impact in opening up the housing market has yet to be seen.

TWO years ago, Calvin bought a property in Johor from a developer supposedly priced at RM924,800.

“Supposedly” because the developer had thrown in a massive credit note of RM141,184 as incentive and rebates to “reward” Calvin for his early-bird purchase.

So, the nett price for the property should have been reduced to RM783,616. But because the sales and purchase agreement had the price at RM924,800, taking a 90% percent loan would have given him a neat profit – because the loan would be more than the nett price he was paying for the property.

“If you buy from developers while the property is under construction, it doesn’t require a valuation report so developers can artificially jack up prices like that,” says Calvin’s wife, Priscilla, who works in a bank.

She says it is not uncommon for developers to work hand-in-hand with banks on this because both stand to gain.

Ever been to one of those new project launches only to find infuriatingly that one of the blocks and the choice units have already been snapped up even before the launch?

Malaysia Institute of Estate Agents (MIEA) president Siva Shanker points to the cosy “property investors clubs” as the culprit.

“In these investor clubs, members ‘gang up’ and sometimes buy up the whole block.

“But these people are not end-users. They are speculators. They are like middlemen who take these units from developers without paying anything, then sell them off for a higher price or flip them after two years when the project is completed,” he says somewhat disapprovingly.

He says that often before a launch, developers offer the first bite to these property investor clubs.

“And they can never get enough. They’ll take the whole block and sell the 100 to 200 units to their own members.

“And when the developer launches the project a few days later, he can say Block ‘A’ is already fully sold and bump up the price for Block ‘B’,” he says.

What happens here, he points out, is that the genuine house-buyer ends up paying a higher price, or in some cases being deprived of a chance of buying a unit because it is already sold out even before the launch.

Siva, however, stresses that people should not blame developers.

“The developer is a capitalist. His job is to make money. If he can sell at a higher price, why shouldn’t he?

“Blame the speculators because they are the ones who are driving the market really high,” he adds.

The recent Budget 2014 announced a slew of measures aimed at curbing speculation in the property market, which has been spinning out of control and putting houses, particularly for the lower and middle income groups, beyond their reach.

The measures include a 30% tax (RPGT) on profits, if the property is sold within three years of purchase, 20% in the fourth year, 15% in the fifth year and no tax if it is after the fifth year.

Developers too will no longer be allowed to offer the developers’ bearing interest scheme (DIBS), a scheme which speculators loved and took advantage of, because they did not have to pay interest during the construction period and would only need to start servicing their loan once the house had been completed and handed over, by which time the price of the property would have gone up and they would be able to “flip” it for a profit.

From January, when the new measures come into effect, developers would also need to spell out details in their pricing, including listing down the price of the benefits and incentives offered to buyers such as the exemption of legal fees, stamp duty, sales agreement, cash rebates and ‘free’ gifts such as renovation and all the built-ins.

Another measure is that foreigners would now be allowed to only buy properties that cost RM1mil and above.

Siva says while the primary market (i.e. buying new units from developers) make up only 20% to 25% of total transactions in the market, this is really where the massive speculation is happening and this has been spiralling out of control and creating distortions in the market place.

“The developer is saying there is demand and ‘let us build, build and build’ but they are building only high-end properties

“If one guy goes and buys 20 units from a developer, is that real demand? Is he going to live in these 20 places? Who is going to live in these 20 places?”

“Developers don’t want to build the RM200,000 or RM300,000 units anymore (although these are in high demand) because the profit is less.

“If I was a developer, I would do the same thing. They are in it to make money. And just because they are doing such a fabulous job, selling very well and the market is zooming, you can’t now blame them.”

But Siva has less sympathy for speculators especially those in it for the short term.

He says thanks (or rather no thanks) to the (soon-to-be-prohibited) DIBS, speculators have been buying properties “they don’t need and can’t afford.”

“If you bought a RM1mil property and took a 90% loan of RM900,000 and the developer gave you a 10% rebate which comes up to RM100,000 and picked up the stamp duty, legal fees and absorbed the interest rate during the construction period, you bought that property without taking a sen out of your wallet!”

“That’s scary and dangerous because the only reason you could buy it is because you didn’t have to pay for it in the first place.

“But if they made you pay 20% down payment and pick up the cost of the legal fee, pay the interest for the first two years, you wouldn’t have been able to buy the place and would have therefore stayed away from that purchase.”

For him, the 30% RPGT for the first three years and removing DIBS are smart moves that will reduce speculators to some extent.

People would balk at having to give away 30% of their profit as RPGT, he says, and without the DIBS, buyers would now need to pay the interest on their loan even during the construction period so this would deter speculators who have been having it good for these past few years with no-money-down housing schemes.

In any case, with so many high-end properties in the market these days, Siva questions who the property speculators are hoping to rent their units out to, if they are not able to sell it.

“If the monthly rent is RM7,000, RM8,000, RM9,000, RM10,000 most Malaysians can’t afford this.

“Only the expats can afford this. But the number of expats here has reduced drastically because the economic crisis in Europe had many companies sending their expats back to their home countries. Although things have improved a bit in Europe now, the number of expats coming back here is still not like before.

Siva also wonders about the thousands of units coming up in the Iskandar development region in Johor.

“Are they expecting 30,000 expats to live and rent there? I don’t think so. I feel a lot of these units will be empty.”

He describes as “madness” the rate property prices have been growing in recent years, with prices jumping by RM300,000 in just a matter of two years.

“The growth is too high, too fast and at that pace, the fundamentals can’t hold. And if many people can’t service their loan or sell their property, and if their numbers are in the thousands, then the market can come crashing down.”

So Siva is somewhat pleased that “brakes” are being applied to the property sector to slow it down and stop it from racing out of control.

For him, as long as property is being viewed as a financial instrument, the home owner will lose out to the investor and speculator who has far more resources and insider information to buy before a launch.

“That is why genuine house-buyers are screaming because they are not able to buy a property for themselves which I think is unfair.

“There must be social justice. Everything can’t be about making money and capitalism. What about the person left behind? He is going to suffer more and more.”

It is too early to say if the stringent measures announced in Budget 2014 three weeks ago will affect the property market.

But Siva says it has already affected market sentiment.

“There is virtually no activity in the market because everybody has a knee jerk reaction but this is only to be expected in Malaysia.

“Every time there’s an announcement, there is a huge knee jerk reaction and people panic and act like their mother died.

“Nobody buys and sells anything, then after three or four months, people forget, then slowly a semblance of order returns and life gets back to normal.”

Which is what he expects to happen with the property market this time. He does not think the curbs introduced are going to bring down prices.

“I don’t have a crystal ball but I don’t think prices will go up either. I think prices will consolidate for the next three quarters, then we should recover in 2015 and start moving along to another high in 2016.”

So what is his advice to wannabe home buyers?

Barring a serious mishap or global economic downturn, he doesn’t see property prices coming down, he says.

“Nothing is going to be cheaper than it is today – not sugar, not petrol, not underwear! It is the same with property.

“Land prices, cement prices and labour costs are going to be more expensive. So if you want to buy a property, now is as good a time as any.”

He says if the buyers can’t afford units at the present price, they should consider buying a property a little further away or a smaller unit, then upgrade later in life.

Secondary market

One of the things worth considering, he says, is to buy from the secondary market (which means not buying a brand new property but buying existing properties from those who want to sell).

Buying from the secondary market, he believes, can sometimes save a person 30% to 40% of what it would cost if that person had bought a new property within the same area.

Citing as example, one of the latest condominium projects in Bangsar which is selling at RM1,500 per sq ft. But there are older development projects there that one can still buy in the secondary market for RM600 to RM1,000 per sq ft.

“All the speculation is in the primary market, so you can get a good property in the secondary market for cheaper. You just have to put in more effort and look out for them,” he says.

And what is his advice to flippers who are now ‘stuck’ because of the new measures?

“To those who bought based on greed and ‘kiasu’-ism based on the advice of so-called property gurus whose credentials are suspect, I am sad for you but you walked into this.

“So if now you can’t afford and really need to sell, don’t be greedy and put such a high price on the property that makes no one want to buy it.

“Bring the price down if you can and try to sell it as fast as you can so that you don’t get into the trap of not paying your banking loan and falling into a non-performing loan situation.

“Your greed is what got you there in the first place. Don’t let that greed propel you further into darkness.”

But if the speculator chooses to look for a tenant instead to subsidise the mortgage payment, Siva says, he should be realistic.

“Stop listening to the advice of your so-called property guru who advised you three years ago that you can get more than your mortgage on rent because sometimes you can’t.

“So if your monthly mortgage payment is RM3,500 and you want a rental of RM3,500 and are stubbornly waiting, you should stop now. It is better to accept a lower rental because the alternative is zero.” - The Star

Market forces will decide property prices

HAVE developers become too greedy?” Ask this question to Real Estate and Housing Development Association (Rehda) president Datuk Seri Michael Yam and there is a momentary pause on the other side of the line.

Then just as quickly, Yam springs to the defence of developers, insisting that this is just perception and not at all true.

“It is because property affects every facet of people’s lives that it becomes so sensitive and almost a political issue.”

He points out that developers have over the years delivered more than four million housing units including a huge number of subsidised units.

“Ninety-five per cent do a proper job, so it’s not fair to call us greedy,” he says.

Yam says property prices are based on supply and demand, and that prices will be kept at an equilibrium when the supply in the market meets the demand.

“When there is an oversupply, people will stop buying and the less efficient developers will be forced out of business.”

He stresses that developers have had a lot of conditions and requirements imposed on them in the past, like building low-cost housing, offering bumiputra subsidy for housing, building community centres and other approvals, which all adds to the cost.

“If people claim developers make a lot of profit, don’t forget a number of developers are SMEs. Those who develop Kelantan, Terengganu and Johor – ask them if it is very profitable,” he says.

Even for the public-listed property companies, he points out that their profit margins are usually less than 20%.

“If they make more than 20% to 25%, then it’s usually from the sale of parcel of land and they realise the profit from that year,” he says.

Yam says the property sector is no more different than those in manufacturing or trading but points out that the top public-listed companies that made billions are in fact not property companies but those in banking, plantation, trading and services.

He admits that the stringent measures announced in Budget 2014 to curb property speculation took the industry by shock because the quantum of the real property gains tax (RPGT) was even higher than the rates imposed before April 1, 2007, which were already deemed to be high at that time.

“We expected a revision of RPGT upwards but not by this quantum.”

On the RM1mil minimum for foreigners to buy property in Malaysia, Yam says Malaysia has never been a spot for property speculation by foreigners in the past because the appreciation had been too slow compared to its neighbouring countries.

“But property prices in Hong Kong and Singapore have gone to dizzying heights to the detriment of their citizens, and so these countries are doing some serious curbing. So what Malaysia has done (with regard to purchases by foreigners) is a pre-emptive move because knowing that all the other doors are closed, you don’t want the horse to bolt.”

Still, he notes that foreign property ownership in Malaysia is only 5.5% of the whole housing stock which is really not a significant percentage.

“If Malaysia was such a fertile ground, foreigners would have bought it up.

“You must remember that investors do not just buy because land or property is cheap. it’s about the whole packaging. It’s about crime, security, lifestyle, quality of living etc. The most expensive places are Hong Kong, Singapore and London and people are still rushing to buy there. So let’s not look at things in isolation,” he adds.

With the stringent measures in place in January, he says, developers will now need to be creative and find “various marketing mechanisms” to survive.

He concedes too that consumers should also be enlighted and educated with regards to purchasing property.

“But people are not idiots. They know what they are buying.” - The Star

Increase transparency in prices

Companies factor in freebies into the cost of the property

DEVELOPERS often offer sales gimmicks and marketing ploys like free legal fees, rebates, air-conditioners and furniture. Budget 2014, however, seems to make it a requirement that developers be transparent about their property prices.

The adage “There’s no such thing as a free lunch” rings true in this instance. While developers are quick to advertise various blandishments such as “free legal fees/stamp duty, etc”, such freebies are always factored into the property price. These freebies should be translated into cash incentives to be deducted from the purchase price of the property, as otherwise, it becomes meaningless to offer these gimmicks, which are usually recovered in the form of substandard materials. Here, we again thank our Prime Minister for announcing that developers, when offering their products, should disclose the value of the freebies to the buyers. Such transparency is a move in the right direction so that buyers would know what they are letting themselves in for. The enforcers of the law should be able to count on the Urban Wellbeing,

Housing and Local Government ministry to do its job to ensure that there is strict compliance and observance.

Whilst such a requirement will not deter speculation, it will hopefully educate house buyers on what makes up their final property price and not to be misled by developers advertising such freebies.

Additional measures

The National House Buyers Association (HBA) reiterates its call on the Government to take additional measures to stem the steep rise in property prices. There are basically two ways to reduce speculation: increasing the entry cost and increasing the exit cost.

Whilst Budget 2014 has increased the exit cost in the form of the higher real property gains tax or RPGT, more measures are needed to increase the entry cost to further reduce speculation.

The current stamp duty payable for the transfer of properties is based on the value of the property. This does not deter speculators, as the stamp duty payable is the same, regardless of the number of properties already held or bought.

The Government’s current low stamp duty regime has been misused by property speculators to accumulate multiple properties, driving up these prices by creating false demand and denying genuine buyers the opportunity to buy such properties.

It is every Malaysian’s wish to buy at least one property in their lifetime for their own dwelling, and perhaps an additional piece of property as a long-term investment or to fund their children’s education. Hence,

HBA has proposed that the current scale stamp duty remains the same for the first two properties bought, but is increased to a flat rate based

on the property price for the third and subsequent properties to discourage speculative buying.

(See table for a comparison between the current stamp duty and the stamp duty proposed by HBA.)

With the same scaled stamp duty payable regardless of the previous number of properties held, speculators are not deterred from buying multiple properties.

Even for properties costing RM600,000, the stamp duty payable is only 2% of the value of the property.

The HBA-proposed stamp duty would not cause any disruption to genuine house buyers who can only afford two properties in their lifetime (one for their dwelling and one for long-term investment).

On the other hand, property speculators would be discouraged as the stamp duty greatly increases their entry cost.

RPGT will not lead to higher property prices

Certain parties with vested interest are claiming that the revised RPGT rate would lead to higher property prices, as speculators would definitely factor in the RPGT into their property prices, only for the subsequent buyer to end up paying the RPGT indirectly.

Such statements only confirm that speculators are indeed responsible for driving up property prices.

If indeed the speculators factor in the additional 20% to 30% RPGT into their property prices, then it would make the property prices unattractive to the next buyer.

Financial Institutions may be unwilling to finance such exorbitantly overpriced properties, as such institutions have their own market intelligence to determine the fair value of such properties.

RPGT will lead to an orderly property sector

The aspiration of every rakyat is to own a roof over their heads and shelter their young rather than making money from properties. Hence, having the RPGT in place would deter speculators, and eventually lead to a more orderly property sector driven by market demand and not speculative forces.

Therefore, HBA supports the Government’s RPGT proposal and urges the public to support such a move to curb the current excessive speculation in the property sector.

HBA strongly believes that the cost of a roof over one’s head should not be left to market forces. The repercussions whereby a large section of society is deprived of affordable housing is serious and far-reaching. The present property price increase does not commensurate with the present rise in wages. The affordability of house ownership is becoming an elusive dream to the present generation. Controlling the upward spiral of property costs is not in the interest of housing developers. In fact, they certainly favour it. Therefore, it would be totally unrealistic to expect any developer to be interested in bringing down property prices.

CHANG KIM LOONG is the honorary secretary-general of the National House Buyers Association (www.hba.org.my), a non-profit, non-governmental organisation (NGO) manned by volunteers. He is also an NGO councillor at theSubang Jaya Municipal Council. - The Star

发展齐来也路可负担房屋 Zubicon公司得标

槟岛西南区14日讯）槟州政府通过公开招标，委任Zubicon有限公司成为S.P.齐来也路可负担房屋发展计划的发展商。

槟州首长林冠英今日见证槟州发展机构和槟岛市政局与该公司签署联合发展合约，计划在S.P.齐来也路的11.04英亩地段上，兴建1900个廉价和中廉价房屋单位。

有关合约阐明，该项发展计划必须在4年內完成，并在2017年全面建竣。

该项计划的1900个单位中，包括：

883个单位（每单位最低面积800平方尺，最高售价20万令吉）

770个单位（每单位最低面积700平方尺，最高售价7万2500令吉）

165个单位（每单位最低面积900平方尺，最高售价30万令吉）

82个单位（每单位最低面积1000平方尺，最高售价40万令吉）。- 

Pay some premium and it’s done, owners of leasehold properties told

GEORGE TOWN: The state government has no objection to renewing the leasehold land status of residential owners, including the 465 households in Bukit Gelugor.

Chief Minister Lim Guan Eng (pic) said houseowners only need to pay the difference in terms of premiums to extend the lease.

“There is no problem for houseowners who wish to extend their lease for another 99 years.

“They can just submit their application to the land office. For the record, we have actually renewed some of the leases,” he said.

Lim, however, said the conversion of leasehold to freehold status was a different story.

“Under the National Land Code and the Federal Constitution, we have to get permission from the National Land Council before we can award freehold status to leasehold land owners.

“The National Land Council, however, did not agree to the state government’s application to give freehold status to owners of residential properties.

“Nevertheless, we are still trying. The problem is that the National Land Council meets only once a year.

“We will still try our luck during the meeting to be held either this month or the beginning of next month,” he told a press conference at his office in Komtar yesterday.

Lim was responding to the 465 households in Bukit Gelugor who wanted the state government to help them renew their leasehold land status which will expire in 2052.

Penang Bukit Gelugor Residents Association vice-president M. Ganesh had said they were uncertain about the state policy on the matter. - The Star

Lim said they had explained the situation to the Bukit Gelugor houseowners many times, including once before the last general election.

He also said the state government adopted a people-centric policy, under which houseowners with expired leasehold land status in new villages, traditional villages and estates get to enjoy 90% discount in premiums for their lease renewal.

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张宝发：槟产业市场处巩固期 交易量降 价值保持

（槟城12日讯）马来西亚亨利行（Henry Butcher）槟城分行董事张宝发博士透露，自2011年开始，槟城产业交易量已逐渐下降，但这是一种健全的现象，因为任何市场到达顶点时，都会回跌。

他认为，槟城产业市场目前是处于巩固期，虽然产业交易量下降，但在产业价值上升下，成交的价值仍然保持。

他举例，以单位计算，于2012年，槟城产业交易量为1万5891单位，于2013年则只是1万1550单位，下降大约27.3%，而于令吉款额计算，2012年的交易量为60亿9425万令吉，2013年则56亿3528万令吉，下跌只有7.53%。

他是于该公司槟城办事处2014年财政预算案圆桌讨论会过后，受到记者询问时，如此指出。受邀参与该讨论会的尚包括马来西亚房地产商会槟城分会主席拿督陈福星，丰隆银行个人金融服务高级分行经理刘铠樑，比马威特许会计行股东黄国成及米雪儿等。

陈福星认为，槟州政府建议于明年实施征收额外3%产业交易价税款，不足以阻止外国人在房地产的投机，因为如果大量类似活动，仍然会造成冲击，屋价将继续上涨。

黄国成建议只对售屋者，而并非购买者征收有关的税款，以阻止外国人的投机活动，因为槟州政府不应阻止外国人前来购买产业。-