30 November 2021: Bursa to be Asean’s most expensive market; RM3.66bil worth of unsold properties in Penang

Bursa set to be Asean’s most expensive market

The proposed increase in stamp duty rates on contract notes will make the local stock exchange the most expensive market to trade in Asean, points out Bursa Malaysia. “The cost of transactions on Bursa Malaysia was already among the highest in Asean prior to the Budget 2022 announcement. Increasing the stamp duty rate makes us the most expensive market to trade in the region, as the removal of the sales and service tax is much smaller compared to the proposed increase in stamp duties,” the stock exchange said. Under Budget 2022, it was announced that there is a proposed increase in stamp duty rates to 0.15%, from 0.1%, and the removal of the sales tax (SST) from brokerage activities for trading of listed shares. Additionally, there will also be a removal of the RM200 cap on contract notes for the trading of shares. If passed into law, this will take effect on Jan 1, 2022. Bursa Malaysia pointed out that it is cheaper to trade in markets such as Singapore, Philippines, Indonesia and Thailand. Budget 2022 has also proposed the Cukai Makmur or prosperity tax entailing a one-off corporate tax of 33% for any company with an income over RM100mil for 2022. (The Star)

RM3.66bil worth of unsold properties in Penang, second-highest in Malaysia

Penang has the second-highest number of unsold properties in Malaysia with 4,683 completed housing units worth RM3.66 billion. State Housing, Local Government, Town and Country Planning Committee chairman Jagdeep Singh Deo said Johor ranked first with 6,509 unsold properties worth RM4.89 billion. The Federal Territory of Kuala Lumpur with 3,863 unsold units worth RM3.1 billion and Selangor with 3,367 units worth RM2.9 billion are third and fourth respectively. “Of the total unsold housing units in Penang, only 347 units or 7% are affordable houses priced at RM300,000 and below,” he said. He said the state government always reminded developers to give priority to affordable housing projects, adding that the state government also plays a role in encouraging developers to build affordable housing by introducing various incentives such as reducing charges involving development and so on. (Malay Mail)

Housing Ministry: RM22m spent out of RM69m allocated for strata housing issues

The Housing and Local Government Ministry has spent a total of RM22 million out of RM69 million allocated to solve issues faced by occupants of strata housing this year. Its deputy minister Datuk Seri Ismail Abd Muttalib said that there were 19,911 complaints of strata housing issues received by 67 Commissioner of Buildings (CoB) nationwide, barring Sabah and Sarawak, in 2020. Among the categories of complaints we received were maintenance and damage of buildings, meetings and choosing of management bodies, building administration and management, as well as monetary issues. He added that the five “states” with the highest number of complaints were Selangor with 9,185 cases, the Federal Territories with 5,362 cases, Johor with 2,215 cases, Penang with 2,149 cases, and Negri Sembilan with 274 cases. (Malay Mail)

Weaknesses identified in Selangor Smart Rent Scheme

Several weaknesses have been identified in the Auditor-General’s Report (LKAN) 2019 Series 2 on the management of the Smart Rent Scheme under the Selangor Housing and Property Board. Auditor-General Datuk Nik Azman Nik Abdul Majid said among the weaknesses were contracts not signed, late offer letters issued to tenants, no lease renewal letter between Hartanah Selangor, Perumahan dan Hartanah Selangor Sdn Bhd (PHSSB) as well as tenants, and inefficient rental management. The scheme was to assist the people of Selangor, who were still without a home and could not get a housing loan, by renting a house provided by the state government at an affordable rate. However, he said the purchase of residential units under the scheme did not achieve the set target and an evaluation of the results had never been prepared by the Selangor Housing and Property Board and PHSSB to gauge the effectiveness of the programme. (The Edge)

Singapore open to fresh HSR proposals from Malaysia, says Hsien Loong

The republic is open to fresh proposals from Malaysia on the Kuala Lumpur-Singapore High Speed Rail (HSR) project although both countries have previously agreed to terminate it, says Lee Hsien Loong. The Singapore Prime Minister said both countries’ transport ministries would discuss the matter and Singapore looked forward to receiving more details from Malaysia. “Singapore looks forward to receiving more details from Malaysia so that we can study them and consider the matter again starting from a clean slate,” he said during a joint press conference with Malaysian Prime Minister Ismail Sabri. On Jan 1, 2021, Malaysia and Singapore jointly announced the termination of the HSR project, as both countries failed to reach an agreement on changes proposed by Malaysia before the project agreement lapsed on Dec 31, 2020. (The Star)

7-Eleven Malaysia to expand pharmacy business into Indonesia via JV

7-Eleven Malaysia Holdings Bhd (SEM) has team up with a listed company on the Jakarta Stock Exchange to set up a retail pharmacy chain in Indonesia. SEM said its 75% owned Caring Pharmacy Retail Management Sdn Bhd has entered into a joint venture with PT Era Prima Indonesia (EPI) to established the business. Caring would take a 50.1% stake in the JV. SEM said the total funding of the proposed JV was about RM8.55mil. EPI is a subsidiary of listed firm PT Erajaya Swasembada Tbk, a distributor and retailer of mobile communication products. (The Star)