Increasing home purchasing power of Malaysians via government policies and financial measures
Petaling Jaya, 20 September 2019 – Extension of home-buying campaign and property financing tenure, adjustment of Real Estate Profit Gain Tax (RPGT), lowering the threshold for foreign buying of properties, as well as further incentives to encourage wider Industrialised Building System (IBS) adoption, are the five key thrusts on leading township developer, LBS Bina Group Berhad’s (LBS) wish list for Budget 2020. “Homeownership plays a key role in ensuring the well-being of the nation, both socially and economically. We at LBS hope the Government will continue to uphold its commitment to ‘house the nation’ by delivering more affordable units,” said LBS Group Managing Director, Tan Sri Lim Hock San.
“In view of the opportunities and challenges facing the local property sector, Budget 2020 presents good opportunity for us to review policies and measures to encourage homeownership, as well as to uplift the property sector, whether it is through provision of incentives for potential homebuyers or easing the cost of business for property developers,” Tan Sri Lim explained. As the ‘People’s Developer’, LBS remains committed to support the government’s housing agenda and suggests five key measures aimed at promoting homeownership for first time homebuyers:
(1) Noting that property affordability remains a key challenge for the majority of Malaysian homebuyers, especially those from the lower-income group, LBS proposes that the Government continues the homeownership campaign (HOC) and various financial incentives till 2020. The HOC campaign will enable homebuyers to purchase their dream home at a special rate.
(2) To enable easier access to financing options for first time homebuyers, LBS is of the view that the housing loan tenure should be extended from 35 years to a maximum of 40 years, for all property types, and 100% housing loans for young graduates and professionals.
(3) To spur growth in the secondary property market, LBS recommends the adjustment of the 5% Real Estate Profit Gain Tax (RPGT) imposed on gains obtained from disposal of property after five years of ownership, stressing it will promote home upgradings and boost property buyers’ confidence.
(4) Additionally, LBS hopes the Government will introduce further incentives to promote wider adoption of IBS technology, especially, for township developments. The wider usage of IBS will enable property developers’ fast-track the delivery of quality housing units, while simultaneously reducing the building cost and reliance on unskilled foreign labour, eventually, bringing down house prices.
(5) Lastly, LBS proposes lowering the minimum property purchase price for foreign homebuyers to RM700,000 for a limited two years period to help resolve the issue of unsold residential units in the country.
“Affordability, connectivity and community are three important pillars that we believe determine the success of LBS developments. To shape a more sustainable future for the Malaysian property sector LBS will continue to focus on providing more innovatively-designed homes, at affordable prices, to help the Government realise its plan to deliver one million affordable homes in the next 10 years,” concluded Tan Sri Lim.
About LBS Bina Group Berhad
LBS has a distinct pedigree which dates back to 1980s when Dato’ Seri Lim Bock Seng – a young and aggressive man with vision – founded the original construction business in Petaling Jaya. After a decade of rapid growth, LBS set its sights higher and ventured into the property development sector in 1992 where it started its first project, the Jelapang Maju Light Industrial Park in Ipoh, Perak. After taking over the baton from his father, Tan Sri Lim Hock San has grown and developed LBS into one of the major players in property development in Malaysia. LBS Bina Group Berhad (5789) was listed on the Main Board of Bursa Malaysia Securities Berhad in 2002 with business expanded to Zhuhai, the People’s Republic of China.
Under the leadership of Managing Director, Tan Sri Lim Hock San, the Group re-strategized its business model, and launched a brand new image, identity and direction as part of its long term objective to be an internationally recognised developer, building and inspiring lifestyle spaces that enhance community living. To mark this new direction, the Group has extended its portfolio of quality homes to the high-end market and has embarked on a progressive journey of change, which includes the areas of product, customer experience, after-sales services, sustainability, green technology and design.
In recognition of his entrepreneurship, Tan Sri Lim was awarded the Asia Pacific Entrepreneur of the Year Award 2012 by Enterprise Asia. In July 2012, as an acknowledgement of his active involvement in the development of Zhuhai City, China, Tan Sri Lim Hock San was appointed a committee member of the Zhuhai Municipal People’s Political Consultative Conference (Zhuhai CPPCC). Under the stewardship of Tan Sri Lim, the Group was awarded the ‘Best Company for Leadership of Property Development’ at the 2014 International Alternative Investment Review (IAIR) Awards.
Another exemplary accomplishment of Tan Sri Lim was the conferment of The Brand Laureate Hall of Fame – Lifetime Achievement Brand ICON Leadership Award 2015. Tan Sri Lim was presented the award in recognition of his perseverance through many years, resilience that has withstood the test of time, demonstration of strong leadership, deep industry knowledge and impeccable values of integrity and responsibility through LBS. In appreciation of his contribution to the lasting relationship between Malaysia and China, Tan Sri Lim was conferred the Lifetime Achievement Award 2015 during the World Chinese Economy Summit 2015 (WCES). The World Economic Summit honours entrepreneurs for their dedication, selfless service and innovative leadership.
LBS marked new milestones in 2016, as the company was awarded the 5 Star Best Development Marketing Malaysia award for its lifestyle-concept development BSP21, and the 5 Star Interior Design Show Home Malaysia award for its Corallia semi-detached homes, at the prestigious Asia Pacific Property Award (APPA) 2016. LBS also clinched the BrandLaureate Most Valuable Brand Award for Property Industry 2016 award in recognition of its esteemed reputation as a trusted property developer at the BrandLaureate Best Brands Awards 2015 – 2016.