Govenrment's Policy on Property

Malaysian government sometimes is very good indeed. At the beginning of 2007, Deputy Prime Minister has even openly expressed his view that Malaysia property market will do well. Being an important factor that will contribute property prices stability and upside, government policy is always playing a major role in this segment.
But what is the reason that a need to boost the property prices? From my personal view, government has been helping the lower income group by putting many policies like every project must has a low cost apartment in every township; putting taxes and pressures to avoid unnecessary speculation on property prices. All these policies are waived in 2007 like now there is zero tax on property gain transaction in Malaysia. Furthermore, the ministry of housing has set up better procedures to make the process of build, buy and sell more efficient; allowing EPF contributors to apply for monthly withdrawal to reduce their installment pressures or to buy a house; reduce stamp duty on RM 250,000 houses and below; lack the rules for foreign ownership and even provide incentives for foreigners with the recent 2nd Home Campaign to own a their second property as a home in Malaysia.

I believe the reason is the pressure of the government to increase the GDP income per head. It has been a long time that we have a GDP income around USD 4,000 to USD 5,000 per head in Malaysia. When we are moving into a high income, high margin and high tech service oriented economy. We cannot continue to have low cost strategy and we need quality human capital development in the country to compete in the global scale. Thus, boosting asset values is a wise strategy to boost local GDP income and also strong property price will have an effect in assisting the currency rate and also the local stock market- KLSE. We see this is a good move by the government and we also agreed that this will benefit the whole nation.