18th April – 24th April
The government has agreed to review Malaysia My Second Home (MM2H) programme’s terms and conditions, after reports of a 90% decline in applicants due to its strict requirements.
Meanwhile, the Real Estate and Housing Developers Association (REHDA) wants the state government to review the terms of sale for Johor affordable housing (RMMJ) units.
- Government to review MM2H criteria
The government has agreed to review Malaysia My Second Home (MM2H) programme’s terms and conditions, after reports of a 90% decline in applicants due to its strict requirements.
According to the Tourism, Arts and Culture Ministry (MOTAC), the decision was arrived following a meeting between Home Ministry Secretary-General Ruji Ubi and its minister, Tiong King Sing, reported Free Malaysia Today.
“Both parties have agreed for an agency under MOTAC, Tourism Malaysia, to promote and provide recommendations for applications via a filtering process through an MM2H one-stop centre,” said MOTAC.
The centre will help applicants process their applications as well as collate documents required for the issuance of an MM2H pass.
Tiong revealed that the programme’s application process will be more flexible.
He added that the Home Ministry and MOTAC will scrutinise the use of Visa Upon Arrival (VOA) facility, particularly for travellers from India and China, to promote the growth of Malaysia’s tourism sector.
- Johor REHDA wants 10-year rule on reselling units reviewed
The Real Estate and Housing Developers Association (REHDA) wants the state government to review the terms of sale for Johor affordable housing (RMMJ) units.
Since 1 January, owners of RMMJ units valued at RM150,000 and below are only permitted to sell their units to third parties 10 years from the purchase date, compared to an old policy that allows them to sell after five years.
Johor REHDA Chairman Wong Boon Lang noted that while the policy is necessary to curb speculation, he is against a blanket rule for all.
“The new policy is good to curb speculation but at the same time, we should not deny genuine buyers,” he told The Star.
He cited the case of a civil servant who is transferred to another city, noting the RMMJ owner could not sell the unit and would have to pay for another place within his new work area.
“I think a 10-year period is too rigid,” said Wong, adding that applications should be reviewed on a case-by-case basis.
- Property loan applications up 26.6% in February
Bank Negara Malaysia (BNM) data showed that loan applications for the acquisition of property rose 26.6% month-on-month in February, reversing five straight months of declines.
Loan approvals for the acquisition of property also grew 26.6% month-on-month, following three months of consecutive declines, reported Free Malaysia Today.
MIDF Research attributed the sudden increase in loan applications to a recovery in buying interest after the overnight policy rate (OPR) hike was paused in January.
The hike in loan approvals also indicates that property developers’ sales outlook should improve going forward, it said.
Based on National Property Information Centre data, property transaction volume jumped 29.5% year-on-year to 389,107 transactions last year, with residential properties accounting for the largest share at 62.5%.
MIDF believes a sustained recovery in loan application and loan approval data would signal a rebound in buying interest.
The research house kept a “neutral” call with a positive bias on the property sector, especially developers focusing on affordable and mid-market properties.
- Abandoned housing projects remain prevalent in Malaysia
The prevalence of abandoned housing projects continues to be a major issue in Malaysia, with the Ministry of Local Government Development (KPKT) identifying 435 sick projects and 115 abandoned projects as of 31 January 2023.
Unijaya Holdings Sdn Bhd, a company which revives abandoned housing projects, works alongside KPKT to take over such projects, completes them and hands them over to owners as per the Sales and Purchase Agreement (SPA).
While the firm has successfully completed eight abandoned projects, Unijaya faces numerous challenges reviving such projects, such as rising material prices.
“Let’s say earlier the price was RM100,000 but now the market price is RM180,000. So, we have to bear the additional RM80,000 because we cannot ask for extra payment from the existing buyers,” Unijaya Project Director Raventharan PS told The Malaysian Reserve.
With this, government control, stricter regulation and effective penalisation are needed to address the issue of abandoned housing in the country, he said.
Raventharan pointed out that if the problem persists, it will prevent the public, particularly the younger generation and low-income groups, from owning their first homes.
- RM400 million development grant for states to be reviewed
The government, via the National Finance Council (NFC), has agreed to review the annual RM400 million development grant allocated to each state, known as Tahap Pembangunan Ekonomi, Infrastruktur dan Kesejahteraan Hidup (Tahap).
This is to ensure that the grant is distributed according to the respective state’s priorities, reported Free Malaysia Today.
Prime Minister Anwar Ibrahim, who also serves as Finance Minister, said the decision reflects the unity government’s commitment to promote economic growth and development.
Meanwhile, the NFC also agreed to enhance provisions for road maintenance as well as other works for gated and guarded housing areas, including the replacement of road signs.
According to Anwar, state authorities should ensure that road maintenance projects are awarded to contractors within the G1 to G4 class and not just to big concessionaires.
He revealed that the allocation for scheduled pavement maintenance for federal roads was also increased to RM1 billion from RM750 million, to help tackle pothole issues, which have contributed to road accidents.
“This additional allocation will be used for the benefit of small Bumiputera contractors,” said Anwar.
- PKNS to build complex for assisted living
Shah Alam Mayor Dr Nor Fuad Abdul Hamid revealed that the elderly population in Shah Alam has grown by up to 8% this year.
To cater to this increase, Selangor State Development Corporation (PKNS) plans to build a complex specifically for senior citizens, reported The Star.
Nor Fuad noted that the complex, which will be located at Section 13 opposite the Management and Science University (MSU), will follow “the concept of assisted living for the elderly who are living alone”.
“In these units, there will be buzzers that will act as panic buttons should these elderly residents need help,” he added.
Nor Fuad shared that submission of plans for the initiative is expected to be completed in the next three months.
