KUALA LUMPUR (Oct 29): The Real Estate & Housing Developers' Association (REHDA) has lauded the government's various measures to prop up the real estate sector under Budget 2022, saying it will help Malaysians who are struggling from the effects of the Covid-19 pandemic, particularly for those in the B40, M40 income groups as well as the small and medium enterprises.

"Themed 'Keluarga Malaysia, Makmur Sejahtera', it echoes the sentiment of previous efforts taken by the government to mitigate the impact of the pandemic for the past two years, and at the same time not losing sight of our collective Malaysian spirit," said REHDA president Datuk Soam Heng Choon in a statement.

He said the association appreciates that the government has taken into account its proposal to abolish the real property gains tax (RPGT) on homes disposed of from the sixth year onwards by Malaysians and permanent residents in the country.

He added that the tax was initially introduced to curb speculation amid a buoyant property market, but given the current softer conditions, REHDA welcomes its removal.

"We hope that this measure will help invigorate our property market to make it more resilient and eventually translate into a positive multiplier effect on the economy," Soam said.

Meanwhile, he called the government's further allocation of RM1.5 billion to continue with housing programmes such as development of Rumah Mesra Rakyat and maintenance of the public housing units a "step in the right direction".

"Similarly, the RM2 billion guarantees given to banks through the guaranteed credit housing scheme (Skim Jaminan Kredit Perumahan) to assist those in the gig economy and alike, with the ability to pay but without income statement is another welcome move," he added.

According to Soam, while the association is grateful for the government's efforts put into Budget 2022, it is actually hopeful of other positive measures towards faster recovery of the property market.

"However, as the nation slowly mends itself from the pandemic, we hope that this expansionary budget will benefit all sectors of the economy and pave the way for national recovery and growth," he said.

REHDA's sentiments have been echoed by some property developers.

Mah Sing Group Bhd's group managing director Tan Sri Leong Hoy Kum called the Budget 2022 a "timely catalyst" to expedite the recovery of the property industry, in line with the general consensus that next year will be a better one.

According to him, the RPGT waiver is expected to stir more interest in the secondary market.

"This would also boost the overall property market's sentiment as buyers could look to upgrade their homes after selling their older units," Leong added.

On Mah Sing's part, Leong said the company appreciates the government's announcement on the one-year extension for a tax deduction of up to RM50,000 for companies registered under Safe @ Work, in relation to the rental expenses of employee accommodation, as this will benefit Mah Sing's manufacturing division, which has registered under the said initiative.

Meanwhile, S P Setia Bhd president and chief executive officer Datuk Choong Kai Wai said the government's introduction and focus on green budgeting are driving the sustainability agenda, as aligned with the 17 sustainability development goals set by the United Nations.

"Setia is committed to its sustainability journey as its vision to become an ever more sustainable digital player in the long term. Hence, the government's focus on said agenda is apt and timely," he said.

Under Budget 2022, a host of measures aimed at reducing carbon footprint and achieving sustainability were tabled, such as a sustainable sukuk of up to RM10 billion to fund eligible social or nature-friendly projects, as well as a RM1 billion allocation by Bank Negara Malaysia to help SMEs adopt sustainable and low-carbon practices.

Choong also noted that the government did not include a reduction of individual income tax rates, which he had hoped would be tabled under the Budget 2022, but he is still heartened to see that one-off income tax waivers were provided.

Exemptions were given for nursery and kindergarten fees, as well as winners of e-sports tournaments. Meanwhile, organisers of cultural and sporting events as well as international-level recreational activities will continue to enjoy income tax waivers until 2025.

See more Budget 2022 highlights here.