The five-year tourism development plan for Langkawi will further boost the island resort as an international tourist destination.
Langkawi Development Authority (Lada) general manager Datuk Azman Umar said the allocation was based on a tourism blueprint prepared by the Economic Planning Unit under the Finance Ministry.
He said the RM420mil allocation would also act as an incentive to woo more investors to the island. “This is a huge allocation which is spread over five years,” he said in Langkawi.
Prime Minister Datuk Seri Najib Tun Razak, when tabling Budget 2012, announced a RM420mil development allocation for Langkawi, which includes the restructuring of Lada.
2. 10% tax on REIT dividends extended 5 years
The Government has extended the concessionary tax rate of 10% on dividends of non-corporate institutional and individual investors in real estate investment trusts (REITS).
The incentive, which expires on Dec 31, will be extended for five years, starting from Jan 1 next year to Dec 31, 2016.
“We are very happy with the extension as there was a lack of clarity on what would happen after the expiry,’’ said Malaysian REIT Managers Association (MRMA) and Axis-REIT Managers Bhd CEO Stewart LaBrooy.
“Earlier, there were concerns as no announcements were made while the date of expiry was drawing close. Now that it has been extended, we can go back to business as usual.”
Mah Sing Group Bhd managing director Tan Sri Leong Hoy Kum said this would promote domestic participation and attract foreign investors.
Labrooy added that the REIT industry had developed very well over the last few years. The upcoming REIT to watch out is that of Pavilion Kuala Lumpur which should add further liquidity to the market.
Pavilion Kuala Lumpur is slated to be Malaysia’s largest initial public offering for a REIT. It is likely to be valued at a yield of 7%. Details are still sketchy at this point, but sources said its assets could be worth between RM4bil and RM5bil.
3. Affordable homes for the masses
Various initiatives have been put in place under Budget 2012 to make house ownership more affordable.
The maximum price of houses under the My First Home scheme will be increased to RM400,000 from RM220,000, and eligibility will be through joint loans of husband and wife from January 2012.
The 1Malaysia People’s Housing (PR1MA) will be the sole agency to develop and maintain affordable and quality homes, especially for the middle-income group, and it intends to develop several plots of government-owned land around Sungai Besi and Sungai Buloh for this purpose.
PR1MA will also develop areas near public transport system lines, such as the MRT and LRT, for housing. The Government will waive stamp duty on loan instruments for the purchase of PR1MA houses.
To prevent the risk of delayed and abandoned housing projects, Islamic banks have agreed to provide syariah-compliant financing and undertake construction risks to encourage the building of houses costing RM600,000 and below. They will use the build-then-sell concept that allows instalments to start after the house is completed.
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