Malaysia To Abolish Real Property Gains Tax!

It is confirmed! Prime Minister of Malaysia, Datuk Seri Abdullah Badawi made the official announcement today at the Invest Malaysia 2007 Conference. This will spur growth of property market across all segments. Earlier in the year, the Government had also announced foreign purchasers will be allowed to buy residential properties priced above RM250,000 (USD71,429) per unit without the approval from the Foreign Investment Committee, and without limits on the number of units. The State Government has also been instructed likewise to adhere to this new policy and extend the co-orperation to foreigners.

This is indeed a welcoming news for Malaysia, where the property market has remained sluggish for the past 2 years. Let's hope that the Government's new policy is a permanent move instead of a temporary gesture. Investors certainly do not like fickle-minded policies! Nevertheless, such policy may also potentially attract excessive property speculation, driving prices to an unsustainable level (if that happens, of course). I would prefer to see a long-term sustainable growth rather than a short-term bubble! What happens in US property market is certainly undesirable!