Glomac urges gov’t to lower price threshold for foreign property buyers

Pavither September 15, 2020

Glomac urges gov’t to lower price threshold for foreign property buyers

Glomac Bhd has called on the government to lower the price threshold for foreigners purchasing properties in Malaysia to help reduce the country’s property overhang and boost the market.

“At this moment, the foreigner threshold is very high, some states have a foreigner threshold of RM2 million,” Glomac Bhd Group MD and CEO Datuk Seri Fateh Iskandar Mohamed Mansor told the Malaysian Reserve in an interview.

“I appeal to the state governments to allow foreigner buyers to come in since there is global interest in Malaysia now due to our good health system and the country’s capability in controlling the spread of COVID-19.”

Read our comprehensive guide on how to buy a property in Malaysia as a foreigner. 

In urging the government to grab the opportunity, Fateh Iskandar, who also served as immediate past president of the Real Estate and Housing Developers’ Association, said it could raise the price threshold again once the economy has improved.

He noted that foreign ownership in Malaysia is less than 2%.

“Even when we had the Malaysia My Second Home (MM2H) programme, foreign ownership is only at 1.8% from 1.3% previously,” he explained.

“If we can double up the current foreign ownership to 4%, it will help our national economy.”

As such, the government should reintroduce MM2H programme but with better guidelines, he said.

And while the government’s initiatives such as lower Overnight Policy Rate and the National Economic Recovery Plan (Penjana) could help stabilise the property market and the economy, he believes that a new catalyst, such as foreign property buyers, could help enhance them.

With this, Fateh Iskandar expects the property market to face a challenging environment towards the end of 2020.

“Although Malaysia has shifted to the recovery phase of the Movement Control Order, our economy is only slowly opening up,” he said.

“Since a vaccine for Covid-19 is yet to be found, there is absolute uncertainty over the pace of recovery for both the economy and consumer confidence because of the risk that the pandemic may flare up again.”

 

Read our helpful Guides to learn all about the various property buying, selling and renting tips!

POST COMMENT

You may also like these articles

MM2H Centre At Tourism Ministry Closed Until Further Notice, Says Agent

An approved agent for the Malaysia My Second Home (MM2H) programme revealed that the Malaysia My Second Home (MM2H) centre in the tourism ministry had been closed “until further notice”. Andrew D

Continue ReadingJuly 2, 2020

MM2H Freeze To Affect Malaysia’s Economy, Overseas Image

The government’s decision to temporarily freeze the Malaysia My Second Home (MM2H) programme until end-2020 for review and improvement has left MM2H consultants worried of its effect on the economy

Continue ReadingJuly 8, 2020

MP Urges Government Not To Freeze MM2H Programme

Bukit Bendera MP Wong Hon Wai has called on the government not to freeze the Malaysia My Second Home (MM2H) programme, saying it would affect the economy. He noted that the decision to review and fre

Continue ReadingJuly 20, 2020

Feedback