Budget Malaysia 2022 has been announced! There were a lot of important topics touched regarding the financial plans the government has in store for the country over the coming year, but here are the important points on real estate specifically.
1. Houses for Malaysian Families
Every Malaysian family is entitled to a household as a life necessity. As such, the Government will continue to develop housing projects, especially for the low-income group with a total value of RM1.5 Billion. This provision is aimed in the hopes of continuing people-first housing programs and maintenance for their housing.
2. RPGT Tax Relief
The government will not impose real property gains tax (RPGT) towards individual citizens, permanent residents and other companies from the sixth year and above.
Our Co-Founder and group CEO, Kashif Ansari also welcomes this initiative. To quote his sentiment, “Another welcome change is the elimination of the RPGT on Malaysians, permanent residents, and corporations who sell real estate assets after the sixth year. This move will help revitalise the Malaysian property market, resulting in a positive multiplier effect on the economy.”
3. Housing Credit Relief Scheme for Micro, Small and Medium Enterprises
The government will prepare guarantees up to the bank through the Housing Credit Relief Scheme in order to help gig workers, small business owners and farmers easier accessibility to house ownership.
Some other points to take note of:
- Deferment of income tax installment payment for PMKS (micro small and medium enterprises) for six months until 30 June 2022.
- All businesses are allowed to amend the estimated income tax payable in the 11th month before 31st October 2022.
- Accumulated losses can be carried forward for a period from a maximum of 7 consecutive years of assessment to a maximum of 10 consecutive years of assessment.
4. Tax Relief For Building Owners and Business Spaces
Budget 2022 will provide special tax deduction until June 2022 to building owners or business spaces that provide rent reduction of at least 30 percent to tenants.
Essential Highlights For Budget Malaysia 2022
Here are some other important highlights brought upon the announcement, in a nutshell:
- The government expects Malaysia’s economy to grow between 5.5 percent and 6.5 percent next year.
- The budget is supporting three main pillars which are; strengthening recovery,building resilience and driving innovation.
- Special RM2,500 tax relief for the purchase of handphones, computers and tablets.
- PTPTN borrowers get 10-15% discounts, depending on the chosen repayment option.
- Tax deductions of RM2,000 to RM7,000 for upskilling courses.
- JaminKerja initiatives to create 600,000 job opportunities with an RM4.8 billion allocation.
With the three pillars in mind, the budget will have three main focuses, which are:
- Inspiring A Prosperous Nation
- Building Sustainable Businesses
- A Prosperous and Sustainable Economy
Budget 2022 will provide a total of 332.1 billion dollars – which is the highest allocation value compared to previous budgets.
Among that amount, the Government intends to provide 233.5 billion ringgit for operating expenditures, 75.6 billion ringgit for development expenditures and 23 billion ringgit as the COVID-19 Relief Fund. A total of 2 billion ringgit also provided as contingency savings. Although this is a budget expanding, the 2022 fiscal deficit is projected to shrink to 6 percent in GDP compared to 6.5 percent in 2021.