Increase of Property Tax in Selangor Apparently Raises the Cost of Living in the State - But Can it Compare to Kuala Lumpur?

December 28, 2017

While it raised Selangor government’s revenue, political economist Isham Jalil blames the state’s high property-related taxes and other rates to the increased cost of living there.

The hike in night market lot rents, for instance, had forced traders to increase the prices of goods. The increased costs have squeezed businesses, which eventually affected consumers, he said.

“This has led to the high cost (of living), especially in the city areas.”

The opposition had raised property-related taxes in Selangor when it took over the state following the 2008 general elections, said Isham, who served in the Economic Planning Unit within the Prime Minister’s Department.

He noted that the property-related taxes in Selangor as well as Penang, which is also controlled by the opposition, were not as high when Barisan Nasional (BN) was at the helm.

Meanwhile, the development expenditure of the two states were smaller compared when BN was in charge.

“That’s why I always mention that the BN-led government is always (good) for growth and is business friendly. As for the opposition-led state governments, they are bad for the economy, business and the people,” said Isham.

Aware that the Chinese community is concerned of the cost of doing business, economy and cost of living, the government had created a special Cabinet committee that will study the rising cost of living.


Image sourced from Concorde Hotel.


This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email


For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.


You may also like these articles

No More Bumiputra Discount in Selangor! Discount Given to All!

  Selangor’s new guidelines on state property development effectively reduced prices of affordable serviced apartments, SoVo (small office, versatile office) and SoHo (small office, home o

Continue ReadingSeptember 7, 2016

Shah Alam Officers Destroy Family’s House and Shop Despite Authorities Trying to Stop Them. Witnesses were Brutally Treated

 The two devastated families whose houses were forcibly torn down near the Sultan Abdul Aziz Airport in Subang were offered PPR flats by the state government of Selangor.They can occupy the publi

Continue ReadingOctober 5, 2017

Abandoned Community Eyesore to be Revived by Selangor Gov't

  The state government of Selangor has promised to revive an affordable housing project at Bukit Rimau Indah in Section 32, Shah Alam that has been abandoned 15 years ago. “The state has gi

Continue ReadingDecember 12, 2017