Malaysia weighing hike in property gains tax to stabilise housing prices

Malaysia weighing hike in property gains tax to stabilise housing prices: Report

Tuesday, Aug 27, 2013


KUALA LUMPUR – Malaysia’s government is exploring the possibility of hiking the real property gains tax (RGPT) to rein in rising housing prices and curb speculation in the market, state news agency Bernama reported on Tuesday. Bernama quoted Housing Minister Abdul Rahman Dahlan as saying current property tax levels had failed to stabilise house prices with the house price index continuing to rise.“As far as I’m concerned, we’re studying the possibility and if it can cool down the market, it would be on the table,” Abdul Rahman was quoted as saying.

The minister declined to confirm to Bernama if the tax proposal would be included in the 2014 budget which will be unveiled in October.

Malaysia last raised the RGPT in 2012 to 15 per cent from 10 per cent for properties sold within two years of purchase.

It also raised RGTP to 10 per cent from 5 per cent for those sold between two and five years, which analysts had called “too feeble” to cool a jump in housing prices.

Abdul Rahman said the housing price index recorded the highest increases in 2011 and 2012 over the past five years, especially in some states in peninsula Malaysia and in Sabah state in Borneo island.

Analysts have said another hike in RPGT could dent property counters from UEM Sunrise to Mah Sing Group, who are exposed to the high-end and luxury segments targeted by property speculators.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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