Peo­ple’s ex­pec­ta­tions for Bud­get 2017

The Sun (Malaysia) - - MEDIA & MARKETING -

IPROP­ERTY.COM Malaysia ran a short survey to gauge what Malaysians are ex­pect­ing from Bud­get 2017. Be­low is a sum­mary com­piled via iProp­’s on­line survey in­volv­ing ap­prox­i­mately 300 re­spon­dents.

In a nut­shell, the survey re­vealed that Malaysians are con­cerned about the rising cost of liv­ing, would like to see a re­duc­tion in in­come tax, and more ef­forts put into curb­ing crime and de­liv­ery of af­ford­able hous­ing schemes.

Said REA Group In­ter­na­tional COO Arthur Char­laftis: “We’ve seen sig­nif­i­cant in­creases in the cost of liv­ing in Malaysia, in­clud­ing price in­creases in fuel, toll-ways and pub­lic trans­port, as well as the in­tro­duc­tion of Good and Ser­vices Tax last year. Some costs, such as pub­lic trans­port, have in­creased by as much as 102%, which is hav­ing a sig­nif­i­cant im­pact on Malaysian fam­i­lies.”

While there are many af­ford­able hous­ing and first-home ap­pli­cants who have said that they had been turned away when ap­ply­ing to these “as­sisted hous­ing pur­chase schemes”, the survey demon­strated that the peo­ple were hop­ing to see Bud­get 2017 pro­vide more of such af­ford­able hous­ing schemes.

“Malaysia has a rel­a­tively young pop­u­la­tion and work­force, and there is strong de­mand for af­ford­able res­i­den­tial prop­er­ties in ma­jor ur­ban cen­tres. With trans­port costs also in­creas­ing, this young and grow­ing seg­ment of prop­erty seek­ers are look­ing for prop­erty in the cities, often close to their work­place,” Char­laftis rea­soned.

Look­ing at the State of House­holds II Re­port by Khaz­anah Re­search In­sti­tute (KRI), the Malaysian me­dian monthly house­hold in­come in 2014 stood at RM4,585 while the av­er­age monthly take home was RM6,141. This works out to an av­er­age spend of be­tween RM200,000 and RM300,000 on a piece of prop­erty of which REA Group chief econ­o­mist Nerida Con­is­bee felt that the Malaysian govern­ment could in­cen­tivise de­vel­op­ers to build more of these types of prop­er­ties due to the high de­mand of houses in this range.

“Res­i­den­tial prop­er­ties priced RM500,000 and above are only within reach of house­holds earn­ing at least RM15,000 per month, which equates to just 6% of the Malaysian pop­u­la­tion,” added Con­is­bee. She also sug­gests that the govern­ment look to other Asian coun­tries with sim­i­lar is­sues like Sin­ga­pore or Hong Kong.

“In Hong Kong, to get peo­ple out of pub­lic hous­ing, the govern­ment is ac­tive in sub­si­dis­ing home own­ers by dis­count­ing homes by 30% to 40% for low in­come earn­ers,” Con­is­bee shared.



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