THE STAR. 1ST MARCH: Industry experts are urging the new unity government to reintroduce the home ownership campaign (HOC) and refine the Malaysia My Second Home (MM2H) programme to drive Malaysia’s real estate market in 2023.
Glomac Bhd group managing director and chief executive officer Datuk Seri Fateh Iskandar Mohamed Mansor said there were no catalysts for the property market under the revised Budget 2023 that was tabled last Friday.
Fateh Iskandar, who believes that the Malaysian property industry has been facing headwinds since 2016, said the government should relook at the HOC for both the primary and secondary residential markets.
“Apart from that, the government should work on a more consistent and aggressive MM2H programme to attract more foreign investors,” he said during The 2023 Malaysian Housing and Property Summit titled Reimagining Development in the Post Pandemic Era, yesterday.
Under the HOC initiative, first-time homebuyers were able to enjoy full stamp duty exemptions for residential properties up to RM1mil and partial stamp duty exemptions for those priced between RM1mil to RM2.5mil.
Additionally, every homebuyer was able to enjoy a 10% discount off the property purchasing price.
Meanwhile, Tourism, Arts and Culture Ministry (Motac) deputy secretary general (tourism) Datuk Mohd Zamri Mat Zain noted that before the pandemic, Malaysia’s tourism industry had been growing steadily over the years.
“The industry employed about 3.5 million people in 2019 and contributed RM240.2bil or 15.9% to the country’s gross domestic product,” he said.
Despite the challenges posed by the Covid-19 pandemic, the Malaysian government has continued to invest in the tourism sector, recognising its importance to the national economy, he added.
“Since the reopening of our borders on April 1, 2022, Malaysia has successfully welcomed a total of 10.1 million foreign tourists, generating RM28.2bil in tourism receipts in 2022,” Mohd Zamri pointed out.
Looking ahead, Motac believes that Malaysia is able to attract 16.1 million foreign tourists this year, which could bring in RM49.2bil in tourism revenue for the country.
This will be supported by the fact that the country is currently in a phase of recovery and stability, as well as the resumption of international cross-border travel and China’s reopening of the border.
“In order to accommodate the increasing number of visitors, tourism infrastructure like hotels, resorts and entertainment venues will need to be increased, which creates a big potential for property developers,” Mohd Zamri highlighted.
“This presents a significant opportunity for property developers to invest in the development of hotels, resorts and other tourism-related infrastructure,” he added.
Mohd Zamri also noted that Malaysia has a range of tourist attractions, from pristine beaches and tropical rainforests to bustling cities and historic landmarks.
He hopes property developers can leverage these attractions to create world-class tourist destinations that offer an unforgettable experience for visitors.
According to Mohd Zamri, the Malaysian government has put in place a number of policies to encourage international investment in the country’s real estate sector.