Property sector to benefit from RM15 billion rail and road spending

The RM15 billion allocation next year for rail and road projects would indirectly benefit the property sector, says Mah Sing Group Bhd founder and group managing director, Tan Sri Leong Hoy Kum.

The government’s allocation comes under Budget 2021 announced today for projects such as the Gemas-Johor Bahru electrified double-track, Pan Borneo Highway, Klang Valley double-track Phase 1, Johor Bahru-Singapore Rapid Transit System, and Klang Valley’s Mass Rapid Transit Line 3.

Leong said Mah Sing stands to benefit a great deal from the allocation as several of the group’s property developments are located nearby some of these rail and road projects.

“The allocation (by the government) would help to improve the location’s attractiveness and desirability to live,” Leong said.

Leong also welcomed the government’s move to allow eligible EPF (Employees’ Provident Fund) members to withdraw as much as RM500 per month, amounting up to RM6,000 for 12 months from their EPF Account 1.

He said this is a well-timed decision to assist those who have lost their job, amid the Covid-19 pandemic.

The reduction of the minimum employee contribution rate for EPF, from 11 per cent to nine per cent for the 12 months starting January 2021 will also increase the take-home pay for individuals and ease their financial burden, he said.

With regards to stamp duty exemption on Memorandum of Transfer (MOT) and loan agreement for the purchase of first residential property worth up to RM500,000 effective January 1, 2021, until December 31, 2025, Leong said this will help to boost home-ownership within the five years.

Leong said Mah Sing’s product positioning is in line with the government’s direction as 51 per cent of the group’s 2020 sales target are within this range.

Mah Sing has 50 projects across Malaysia, and 51 per cent of its 2020 sales target is from residential properties below RM500,000.

Rehda Malaysia president Datuk Soam Heng Choon said allowing EPF contributors affected by Covid-19 to withdraw from their Account 1 is a good move.

“With higher disposable income, more spending will be encouraged which will help to spur the economy,” he said.

On stamp duty exemption on MOT and loan agreement for ‘white knight’ contractors and original purchasers of abandoned projects from January 1, 2021, to December 31, 2025, Soam said this will give peace of mind to those purchasers who have been severely affected when the units they bought were abandoned.

“Similarly, the stamp duty waivers for the white knights is hoped to encourage more contractors to come in and rescue abandoned units which eventually will realise the dreams of home buyers to have their own homes,” Soam said.

Source: NST