e-realestate Penang
| NEW YEAR 2001 GOVERNMENT INCENTIVES TO CLEAR UNSOLD PROPERTIES IN MALAYSIA - RELAXATION OF FIC RULES ON PURCHASES BY FOREIGNERS, EXEMPTION OF STAMP DUTIES, LOWERING RATES OF BANK LOANS, DISCOUNTS FROM DEVELOPERS |
REVISED RULES RETROSPECTIVE TO 25 APRIL, 2001
FIC relaxes rules on property purchases:
Foreign citizens can buy all types of property costing above RM250,000 without having to form a company with Malaysian equity participants.
Foreign citizens allowed to source for funds to make such property purchases from domestic banks
Malaysian citizens and companies no longer require approval from the FIC to make property transactions costing below RM20 million. They now only have to report such transactions.
Malaysians also no longer need FIC approval for property acquisitions below RM10 million.
Companies engaged in manufacturing activities that are exempted from licensing by the Ministry of International Trade and Industry are now allowed to buy industrial or factory lots for manufacturing purposes.
Foreign companies can set up their headquarters or regional offices in Malaysia are now allowed to establish headquarters and branches costing above RM250,000 in Malaysia without domestic equity conditions.
Foreigners allowed to buy properties priced above RM150,000 in designated areas under the Silver Hair Programme
(Government had abolished the 10% exit levy on portfolio investments profits).
STAMP DUTY (EXEMPTION) ORDER 2001
Purchases of property units issued with Certificates of Practical Completion (CPC) between March 28 and the end of 2001 will be exempted from paying stamp duty provided their properties are registered with Rehda, the Sabah Housing Developers Association, or Srawak Housing Developers Association.
The exemption extends to residential units, shop lots and industrial properties and will apply for sale and purchase and loan agreements as well as instruments effecting transfer of title from the developer to the purchaser.
More incentives are being sought by the Housing Developers' Associations.
last updated May 25, 2001