Penang State Government To Get Public Feedback On A Proposed Levy Of 3% On The Transacted Price Of Property In Penang By Foreigners In 2014.(en/cn)

Press Statement By Pennag Chief Minister Lim Guan Eng In Komtar, George Town On 28.10.2013.

The Penang state government welcomes the 2014 Federal Budget’s proposal of limiting the purchases of property by foreigners to RM1 million and above to cool down property speculation so that houses remain affordable for middle-income earners. This RM1 million limit announced by Prime Minister Datuk Seri Najib Tun Razak on purchases of properties by foreigners is nothing new to Penang as Penang had implemented this ruling much earlier in 1 July 2012.

Foreigners are only allowed to purchase properties above RM 1 million whereas for landed property on Penang island the limit is RM2 million and above. The Penang state government is proposing additional steps to curb any foreign speculation of property by imposing a levy of 3% on the transacted price of property in Penang by foreigners beginning 2014. Penang State EXCO for housing Jagdeep Singh will hold public consultations by engaging with the stakeholders from REHDA Penang to the Housebuyers Association.

Based the second quarter of 2013, Penang had amongst the lowest property overhang for unsold shops, residential and industrial units in the country. Property overhang is defined as property that remains unsold 9 months after the sales launch. There were only 40 shop units valued at RM 17.11 million unsold, 163 residential units unsold at RM 63.4 million and only 25 industrial lots unsold at RM6.34 million in the second quarter of 2013.(see graph below)

Other cities that may suffer a glut of office space, but Penang is not facing this problem and may even face a shortage. The low property overhang in shops in Malaysia highlights the growing success of building up Penang and fulfilling KPMG’s predictions as one of the 31 future global Business Process Outsourcing(BPO) hubs in the world.

The efforts started 2 years ago by the Penang state government in focusing on the services sector,as they employ almost 100% local workers with high paying jobs, is beginning to show results. By leveraging on the existing advantages of Penang as a world-class manufacturing sector, has helped to catalyze the growth of the IT and services industry in Penang.

In order not to affect the industrial development as well as efforts at convergence of the manufacturing, services and public sector there will be exemptions provided for those involved in these sectors. The proposed foreigners’ levy shall apply only to properties that are residential, commercial or agricultural in nature. However appeals will be entertained if the foreign buyers are working here for an extended period, contributes towards Penang’s industrical development or efforts to be a BPO hub or possesses unique skills required by Malaysia and Penang.

Lim Guan Eng

—–Mandarin Version —-







其它城市可能面对办公室供过于求的问题,但是槟城没有这个问题,反而面对短缺。商业地产过剩不多突显了槟城成功建设成长,并验证了毕马威(KPMG)之前所估计槟城将成为的未来31个全球商务流程外包(Business Process Outsourcing)中心之一。