KUALA LUMPUR, Nov 5 — The Low Yat Group described the 2019 Budget as a key tool in improving Malaysia’s economic well-being while overcoming inherited debts from the previous government.
Executive Director Low Su Ming said the government did not present an austerity budget even though its finances were stretched.
“This is a good head start given the underlying challenges faced by the new government,” she said.
From the property sector, Low said the stamp duty exemptions for first-time house buyers who purchase houses priced up RM500,000 will spur the property market and reduce inventory in the long run.
“While the increase in real property gains tax may seem like a tough decision for the market, it should not deter serious buyers from purchasing good properties in prime locations,” she said in a statement today.
Low also said that in relation to the airport real estate investment trust (REIT), the group believed that despite the creativity of this announcement as securitisation of government assets, the proof is in the implementation and strategies moving forward in developing the airports to reflect its position as a key entry point into the country.
“This is a positive move and the government could reduce its financial burden for airport developments but the strategies for development must be consistent and scalable so the REIT remain attractive to investors,” she added.
In the 2019 Budget, the government has proposed to create airport REIT, through which the government expects to collect RM4 billion by selling 30 per cent equity in REIT to private institutional investors.
On the public transport initiatives, Low said that as a property developer, connectivity would spur development and the unlimited RM100 monthly pass would benefit the people directly.
“We would be happy to see more Malaysians spend time in the city instead of avoiding it due to traffic congestion,” she said.
However, despite the initiative to boost local tourism, Low stressed that the hospitality industry is currently affected by unregulated short-term stays and over-saturation of accommodation inventory, and industry players would need a fresh perspective from the government on related matters.
“This trend is pressuring average room rates to continue to be very low in Kuala Lumpur as compared to other regional cities. Short-term stays have to be regulated to curb oversupply of accommodation in the hospitality and tourism industries,” she added.
In the 2019 budget, the government announced a levy for all passengers travelling overseas via air routes starting June 1, 2019; RM20 for those travelling to Asesan countries and RM40 to other countries to boost local tourism. — Bernama
