By Farah Wahida:
Before providing incentives to government-linked counterparts (GLCs), the government must first take into account the growth of private property developers linked to them.
Ho Chin Soon, Director at Ho Chin Soon Research Sdn Bhd, believes that “private property developers are more innovative and more responsive (to customer needs and market conditions) even though government-linked (property) companies (GLCs) may get certain incentives such as cheaper land. I still think that the private sector can be more dynamic.”
“But if the government continues to pour ‘lots of goodies’ for the GLCs, it may be a bit tough for the private property players (to compete),” he said at the sidelines of the Sixth Malaysian Property Summit 2013 recently.
For example, investors at the Tun Razak Exchange (TRX) development in Kuala Lumpur enjoyed 100 percent income tax exemption for 10 years as well as stamp duty exemption on loan and service agreements, reported The Sun Daily.
Aside from that, they also bagged a 70 percent income tax exemption for five years for eligible property developers, Industrial Building Allowance and Accelerated Capital Allowance.
Hence, the Real Estate and Housing Developers Association (Rehda) has earlier asked the government to assess how these incentives would impact the TRX, claiming that these would create an imbalance in the property market to the disadvantage of developers with land in KL.
“We view TRX with great concern because of the incentives for the project,” Datuk Eddy Chen, former Rehda President was earlier quoted.
Before providing incentives to government-linked counterparts (GLCs), the government must first take into account the growth of private property developers linked to them.
Ho Chin Soon, Director at Ho Chin Soon Research Sdn Bhd, believes that “private property developers are more innovative and more responsive (to customer needs and market conditions) even though government-linked (property) companies (GLCs) may get certain incentives such as cheaper land. I still think that the private sector can be more dynamic.”
“But if the government continues to pour ‘lots of goodies’ for the GLCs, it may be a bit tough for the private property players (to compete),” he said at the sidelines of the Sixth Malaysian Property Summit 2013 recently.
For example, investors at the Tun Razak Exchange (TRX) development in Kuala Lumpur enjoyed 100 percent income tax exemption for 10 years as well as stamp duty exemption on loan and service agreements, reported The Sun Daily.
Aside from that, they also bagged a 70 percent income tax exemption for five years for eligible property developers, Industrial Building Allowance and Accelerated Capital Allowance.
Hence, the Real Estate and Housing Developers Association (Rehda) has earlier asked the government to assess how these incentives would impact the TRX, claiming that these would create an imbalance in the property market to the disadvantage of developers with land in KL.
“We view TRX with great concern because of the incentives for the project,” Datuk Eddy Chen, former Rehda President was earlier quoted.
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