‘Bring back DIBS for first timers’

PETALING JAYA: Mah Sing Group Bhd is asking the government to reinstate the Developer Interest-Bearing Scheme (DIBS) but only for first-time homebuyers.
“The scheme will ease purchase of homes by genuine homebuyers by allowing them to lock in properties at current prices,” the property developer said in its Budget 2016 wishlist yesterday.
It said that reinstating the DIBS, which was removed during Budget 2014, will be in line with the government’s aspiration and assist first-time property buyers.
“We laud the government’s continuous initiatives to encourage home ownership, especially for first-time home buyers. We are also aware of the government’s concerns about the affordability of properties.
“Property industry has a larger multiplier effect than other industries. Hence, stimulating the property industry should therefore have a larger impact on the wider economy,” said group managing director Tan Sri Leong Hoy Kum.
Mah Sing also proposed that the government consider reviewing the real property gains tax (RPGT), including a minimum exemption to revive the property investments segment.
It said that Malaysia’s total property transactions number for the first half of 2015 declined 3.5% while the value declined 6%.
It added that in 2010, the government allowed a 5% flat rate gains tax across the board and a minimum exemption gain of RM10,000.
“Many lauded this move as it greatly encouraged property transactions. Hence, we would like to suggest a review of RPGT including a minimum exemption to revive the property investments.
“There are minimal speculations in the market as many borrowers with three or more outstanding housing loans are only 3% of the total borrowers with housing loans,” it said.
Mah Sing also urged Bank Negara Malaysia to relax the lending requirements for both first-time as well as second-time home buyers, increase housing loan grants, upgrade the status of low-cost housing to affordable housing, to extend the exemption or lower the stamp duty rates for all property transactions and a further reduction of personal income tax for the middle income group.