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PROPERTY INVESTMENT CONVENTION 2015

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On the 8th and 9th August 2015, Wealth Mastery Academy (WMA) organized the Property Investment Convention 2015. Held on a yearly basis, the convention is an amazing opportunity for both property home buyers and investors to learn and explore about the latest updates and strategies in the property investment industry.

This was an ideal place for developers and real estate agencies to exhibit their products to the potential buyers in the crowd. Held at Intercontinental Hotel, one of the significant landmarks in Kuala Lumpur City Centre, approximately 1,000 visitors were present for the exciting convention.

The exhibition provides an opportunity for exhibitors to expand their marketing network globally through various channels. There were good deals and properties below market rate for both soft and pre-launch. It was an exciting moment during the weekend.

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CloudHax was one of the official media partners for the Property Investment Convention 2015.

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Selected speakers from various background, experience and knowledge came for the exciting convention. They are the experts who shared various powerful tips and strategies on property investment which expands the attendees’ knowledge.

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The featured speakers are:

  • JOHN LEE- CEO & Co-Founder, Wealth Dragons UK.
  • CHRIS TAN- Managing Partner of CHUR Associates.
  • MILAN DOSHI- Property Investment Guru & Best Selling Author.
  • HO CHIN SOON- Director, Ho Chin Soon Research.
  • TAN HWA CHUAN- Managing Partner, BIG Property Consultant Sdn Bhd.
  • DR DANIELE GAMBERO- CEO, REI Group of Companies.
  • DAVID CHONG- Vice President (1) – Investment Promotions, Malaysia Property Incorporated.
  • MOHD NAJIB ABDUL HADI- General Manager of Coway, Sales Trainer and Successful Young Entrepreneur and Investor.
  • FENNIE LIM- Executive Director, Crowe Horwarth.
  • KK WONG- Deputy Chairman, REHDA Johor.
  • DR. GERARD KHO- Group CEO & Futurist, Reapfield.
  • RAPHAEL WONG- Chairman, MIEA Youth.
  • AHYAT ISHAK- Best Selling Author & Property Enthusiast.
  • ELIZABETH SIEW- Partner of Messrs Iqbal Hakim.
  • SIA & VOO
  • And more…

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The topics shared were both valuable and essential; well suited to educate the investors to make wise choices. A few of the topics consists of suitable personal investment profiles, and latest strategies that market experts are implementing to assist property investors to avoid extensive losses. On top of that, property investors gets the opportunity to know about hotspots in the industry.

Some of the topics that were shared over the weekend are:

  • Updates! New Urban Transit Oriented Developments (TODs) Property Hotspots to Look Out for in Greater KL?
  • Post GST Effect! The Impact to Property Investors.
  • Property Price X Factor: High Speed Rail, Rapid Transit System & Greater KL MRT 2.
  • Invest When Other Stops: Seizing The Opportunity!
  • Greater Income! How to Invest in Property and Create a Passive Income in Malaysia?
  • Local Vs Foreign: Investing in Overseas Real Estate.
  • Property Protagonist: From ZERO to HERO.
  • Dream Come True: Youth Investors Achieving Financial Freedom by Age 30.
  • Facts and figures of Iskandar Malaysia: Perception Vs Reality of a Well-Planned Economic Growth Corridor.
  • The BIGGER Profit: Land Investment Vs Land Joint Venture.
  • The Ultimate Adventure: What It Takes to Become a Property Millionaire?
  • New Rules: A New Challenge to Property Investors with Recent HDA’s T & C

Sources: Cloudhax.net

PR1MA Developers Not Exempted From Building Affordable Homes

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NUSAJAYA: Developers undertaking the 1Malaysia Peoples Housing (PR1MA) projects are not exempted from the state’s mandatory requirement for developers to build affordable units under the Johor Affordable Homes programme.

State Housing and Local Government committee chairman Datuk Abdul Latif Bandi said that developers were subjected to both the PR1MA Act 2012 as well as the state housing policies to plan and construct houses at an affordable price.

Although they are developing affordable units for PR1MA, they still have to fulfil the requirement to build a certain percentage of houses under the Johor Affordable Homes programme, he said during the state assembly sitting last Thursday.

He said this in reply to a question posed by Suhaimi Salleh (BN-Kukup) on whether PR1MA housing developers were subjected to state housing policies.

Abdul Latif, however, clarified that the commitment to construct affordable homes depended on the zoning status of the developing areas.

If the project is in the commercial and industrial zone, the developer does not have to build affordable homes, he said, adding that three PR1MA projects have been approved in the state.

He said that two of the projects in Bandar Layangkasa in Pasir Gudang have been undertaken by Cahaya Bumimas Sdn Bhd while another project would be developed by Tentu Canggih Sdn Bhd in Plentong.

For the first phase of the PR1MA project in Bandar Layangkasa, the developer has started construction of 475 houses while another 1,995 units will be developed in its second phase, and expected to be completed next year.

The same company is also involved in constructing 1,225 houses and 159 medium-low cost shophouses under the programme in the same area, he added.

Abdul Latif said that Tentu Canggih would be developing 1,284 houses under PR1MA in Plentong but was not subjected to build houses under the programme due to the zoning area.

Source: StarProperty.com

Penang LRT and Highway Construction Work to Start in 2018

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KUALA LUMPUR: Construction work on the Penang light railway transit (LRT) project, which is part of the first phase of the island’s Transport Master Plan (TMP), will start in 2018.

According to SRS Consortium Sdn Bhd, the Gamuda Bhd-led project delivery partner (PDP) for the TMP, it will be finalising the cost and alignment of the entire project by year end.

“We expect to start the construction of the LRT in 2018. It will take six years to complete,” SRS Consortium project director Szeto Wai Loong told The Edge Financial Daily in an interview yesterday.

The proposed Bayan Lepas LRT alignment begins from Komtar and ends at the Penang International Airport, running along the Tun Dr Lim Chong Eu Expressway (LCE).

It was previously reported by local media that the construction of the LRT project is scheduled to take off in the first half of 2017.

Szeto said the LRT project, which has a total alignment length of approximately 20 km, is one of the first components to be implemented under the TMP. The other component is the Pan Island Link Highway, which is expected to start construction in 2017.

He pointed out that the LRT project and Pan Island Link Highway were determined as the first components in the delivery sequence of the TMP as they fetch economic internal rates of return of 12.2% and 14% respectively, which are the highest among other components.

He added that the construction of the LRT project is expected to have minimal environment and social impact as the alignment runs past the LCE and Jalan Sultan Azlan Shah, which have a wide reserve.

“We are not acquiring a lot of people’s land compared to other [similar] developments,” he added.

Meanwhile, on the plan to reclaim two islands in the south of Penang Island, Szeto said the detailed environmental impact assessment report will be available to the public for review by mid-2016.

The reclaimed land will be fully owned by the Penang government and the land will be auctioned to finance the RM27 billion TMP.

“The public will have a month’s time to comment. It will take us another month to address all the issues that are relevant,” he explained, adding that the consultant had already started various studies that will take six to seven months.

He said various studies will be carried out to determine the marine and environmental impact, sea current and sedimentation impact, and socio-economic impact on the fishermen community in Teluk Kumbar, Permatang Damar Laut and Gertak Sanggul areas.

The report will be prepared by environmental consultant Dr Nik & Associates Sdn Bhd. Szeto said one of the concerns of the reclamation work would be the livelihood of the fishermen in the area as they have to travel farther for fishing activities.

“We haven’t got complaints about environmental issues. So far, we only have political issues,” he said.

Certain parties have questioned the Penang state government for allowing too many reclamation activities on the island, which raised concerns about the impact on the environment and marine life.

Szeto reassured that the chosen site is the best site for reclamation as there is no seagrass in the area.

Previously, the reclamation was said to be carried out in Middle Bank, partly a seagrass bed — a natural marine ecosystem and breeding spot for marine life — located near Gazumbo Island next to the Penang Bridge.

However, environmentalists and civic groups opposed the proposed project on the grounds that it had the country’s second-largest seagrass bed.

The Edge Financial Daily reported on Monday that the estimated cost for reclaiming the two islands measuring about 1,300 acres (526ha) and 2,100 acres respectively to be about RM7 billion to RM8 billion.

The reclamation, identified as a land swap model to finance the TMP, is expected to take off in 2018 once federal and state approvals for the project components are attained.

The proposed TMP would feature a LRT from Komtar to Bayan Lepas, a monorail from Komtar to Air Itam and Tanjung Bungah, e-buses across the North Channel, bus rapid transits on the mainland, and a 20 km Pan Island Link Highway connecting Tanjung Bungah to the Penang International Airport and the LCE with tunnels cutting through the hills.

SRS Consortium, a joint venture in which Gamuda holds 60%, with Ideal Property Development Sdn Bhd and Loh Phoy Yen Holdings Sdn Bhd holding 20% each, received its appointment letter as the PDP on Aug 14.

Source: The EDGE.com

MBAN ups awareness through Futurising Asean Angels Summit 2015.

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Malaysian Business Angels Network (MBAN) president Dr V. Sivapalan says the angel scene is buzzing at the moment.— Digital News Asia picKUALA LUMPUR, Nov 11 — As South-East Asian countries build out their startup ecosystems, many are looking at funding, beyond venture capitalism and government aid, by creating a pool of angel investors.

These are almost always initially led by high net worth individuals (HNWIs) with disposable income. Startups are a perfect match for such individuals.

But with the concept of angel investing still new to the region, even in Singapore which has the most advanced startup ecosystem in South-East Asia, it is still too early to gauge efforts to build this leg.

For instance, Malaysia has been trying to build its pool of angel investors since 2013, and even has what some claim to be the most generous angel tax incentives in the world.

But has this been enough in a country where aspiring startups must compete with a formidable and well entrenched competitor for the chequebook of these HNWIs, the property market?

Playing the lead role in convincing HNWIs that betting on startups can offer them more rewarding returns than the predictability of property investing is the Malaysian Business Angels Network (MBAN).

MBAN is the official trade association and governing body for angel investors and angel clubs in Malaysia. Its vision is to become the official voice of the Malaysian angel investor community, as well as a platform for engagement and knowledge-sharing for domestic and international angel investors.

In line with its ambitions, it is organising the two-day MBAN Summit 2015: Futurising Asean Angels, in Kuala Lumpur from Nov 19-20.

Digital News Asia (DNA) spoke to MBAN president Dr V. Sivapalan to find out how the angel investment scene is progressing — or not — in Malaysia.

DNA: What does MBAN hope to achieve through this conference?

Sivapalan: We have three objectives:

Awareness: To create greater awareness about angel investing among the public in general, and among prospective investors in particular. As angel investing is still a nascent industry, we need to do more to create awareness and to let the public know that there is an alternative investing class known as angel investing. We also plan to promote the Angel Tax Incentive as we believe this will spur more investments in startups.

Education and deal flow: Secondly, we will be providing more angel education programmes from 2016 onwards to educate angels on how to invest, how to evaluate deals, the mechanisms of doing deals, and the potential to make money from angel investments. We will start this by introducing our first programme at the summit, as part of our partnership with London Business Angels under the banner of the Angels In The City programme. We will also have pitching sessions to provide curated deal flows for our angels.

Cross-border collaboration: At the summit, we will also have angels from six South-East Asian nations (Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam) as well as Australia, Hong Kong, New Zealand and the United Kingdom present, and we will use this as an opportunity to create potential collaboration between the angel groups in these nations and Malaysia. As more cross-border deals are beginning to happen, and as angels are starting to invest across borders. a collaboration between the angel networks in Asean will benefit the entire ecosystem in the region, and Malaysia as the chair of Asean, wants to play a role in creating these possible collaborations.

DNA: How would you have rated the angel scene in Malaysia in January? How about now?

Sivapalan: I think we have made significant progress in the angel scene in the last 10 months. In January, we had only about 30 or so accredited angels registered with MBAN for the Angel Tax Incentive.

Today we have exceeded 100 angels and the number is growing all the time. I think we will meet our target of getting 120 angels registered by the end of the year.

This shows that our awareness programmes are working and more HNWIs are considering doing deals as angel investors.

We have also instituted monthly pitching sessions for angels from June this year and over the last five months, about 25 companies have pitched their ideas to angels. We see a lot of interest … and we know there are many discussions going on at the moment between angels and entrepreneurs.

The angel scene is buzzing at the moment.

DNA: What has been the trigger for the current buzz?

Sivapalan: The initial trigger was the tax incentive, but I think as more angels started looking at the curated deal flows that we provide, there was a realisation that there are actually many good deals and companies to invest in, in Malaysia.

Before this, angels may have been interested but they did not know how to source deals and how to invest. Since we curate deal flows, we ensure there is some quality in the deals, and this has made the angels aware of good deals.

There is also increasing syndicated deal-making happening – that is, angels are getting together to collectively invest in deals, and as this reduces the risk and introduces more expertise and experience to deal-making, angels are more confident to do deals. We are seeing more angel clubs being formed for this purpose.

Finally, the success of companies like MyTeksi/ GrabTaxi has also shown that Malaysia can indeed produce good companies with good investment potential. [GrabTaxi is the Malaysian-founded, and now Singapore-headquartered, taxi-hailing startup.]

DNA: Is your biggest hurdle in promoting angel investing still that more money can be made from investing in property?

Sivapalan: We know that investing in property will always be there for HNWIs, but increasingly, we are seeing that there is interest in investing in entrepreneurial ventures as well. The returns from angel investing can also be significant, and the more sophisticated HNWIs are prepared to widen their investment instruments. This is starting to happen now.

Perhaps the … poor property investment environment today helps us in promoting angel investing. But once they have had a bite of the cherry, we think angel investing will start to bloom and that will help make it an additional investment class – which is what we hope to achieve in the longer term.

DNA: On the other side of the fence, investors say they cannot find good enough ideas/ people to bet on. As an angel investor yourself, is there substance to this contention?

Sivapalan: This is not true, from what we have seen from our pitching sessions so far. The angels who have attended our pitching sessions now agree that there are good deals out there.

It is important that we curate the better deals so that angels can discover good deal flows. In the future, they will be able to find deal flows themselves, but for now we need to help them.

Also, once we start our education programmes, angels will learn how to be better angels and how to find deals themselves too.

Hence, there is no substance to the notion that there are no good deals in Malaysia. There are, on the contrary, many good ideas and people to invest in.

DNA: Can you share any angel success stories this year so far?

Sivapalan: Depends on your definition of ‘success.’ If success here means an exit. then it is not possible to share much as this is still a very new area. After all, MBAN itself has only been actively promoting deal flows over the last five months.

However, some angels have done deals and have successfully exited, so it has happened before.

DNA Did MBAN put forth any recommendations for Budget 2016 [Malaysia’s national budget for next year] to help the sector? What happened?

Sivapalan: Yes, we did. In terms of the tax incentive, currently angels have to hold on to their investments for two years before they can claim it as a tax deduction. In the United Kingdom, for example, angels get the deduction the same year they invest, but it is limited to 30 per cent of the investment, up to £1 million (RM6.6 million at current rates).

However, they can claim losses from their investments and also get the benefit of capital gains tax (CGT) exemption for the gains from their investments.

We didn’t ask to claim back losses like in the United Kingdom, but we did request for the period to be shortened to either the same year of investment or in the following year.

We also asked for the incentive to be widened to more sectors as currently it is limited to a few tech sectors and doesn’t include greentech or biotech.

Finally, we also supported the Corporate Investment Tax Incentive proposed by the Technopreneur Association of Malaysia (TeAM) as this will allow groups of angels to syndicate deal-making via a corporate entity.

Although none of our proposals were approved, we know that these things take time and we will re-engage with the Government next year.

DNA: What will be the trigger point for angel investing to take off?

Sivapalan: We are already seeing a lot more interest in angel investing today, in terms of the number of HNWIs who have registered with MBAN, the number of angels attending our pitching sessions, and the discussions that are taking place among investors and entrepreneurs.

We believe the ball has started rolling and we want to give it an additional push via our educational programmes and curated deal flows.

Ultimately, when there are more success stories, then angel investing will really take off and we hope this will happen in the next two to three years.

 Source: themalaymailonline.co

All about buying houses in Klang

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STARPROPERTY.MY will be hosting a forum focused on the western corridor of Klang Valley, which has seen rapid growth in infrastructure, connectivity and townships.

This particular corridor, especially its southern part including Klang, is fast becoming a new hotspot for property buyers and investors alike.

This Saturday, the forum at the Cybertorium of Menara Star, Petaling Jaya, will feature two reputable industry experts who will speak on investment and development trends, and present their views.

This is the second of such forum to be organised by StarProperty.my highlighting development in the Klang Valley’s western corridor. The previous one was held on Oct 3.

The first speaker, Ahyat Ishak, author of The Strategic Property Investor, will talk about “Investment strategy in times of uncertainty,” in which he will take attendees through the thought process of a strategist and help them understand the mindsets of some of the greatest investors in the world.

This is an excellent opportunity for the public to not only get a glimpse into the strategies and methods of professionals, but also pick the brains of the speaker who is the founder of the Strategic Property Investor Programme that has helped many Malaysians to create immense and sustainable wealth.

“People should always keep in mind a few reservations about the property market, as there will be risks that exist not only during uncertain times but during good times as well.

“I will be sharing with attendees my knowledge from 25 years of experience on the possible scenarios and how to invest for long-term growth,” he said.

His presentation will be followed by a talk entitled “Greater KL’s development trend and the western corridor” by Ho Chin Soon Research Sdn Bhd senior manager Khairudin Ya’cob.

In this session, attendees will be able to take a look at the past, present and future development trends that will aid in their decision to hold, sell or buy properties.

It is a well-accepted fact that timing is a crucial element in many decision-making situations and game changers may suddenly appear, thus it is paramount to be prepared to seize an opportunity.

Attendees will be able to pick up useful tips at the upcoming StarProperty.my forum, as well as learn in-depth about the house price index.

“As we all know, Greater KL is rapidly transforming into a mega city with the total population expected to exceed 10 million by 2020. This means an increase in demand for houses.

“Are we ready to take advantage of this? I’m going to be educating the crowd about where and how to look for potential hotspots in the projected development boom in Klang,” he said.

Source: Thestar.my

DIBS proposal could boost property sector.

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PETALING JAYA: The Real Estate Housing Developers’ Association’s (Rehda) proposal to reintroduce the developers interest bearing scheme (DIBS) for first-time homeowners could be a boost for the property sector, according to AmResearch.

In its published report yesterday, the research house said the move to revive the DIBS policy followed a ‘wish list’ that Rehda had submitted to the Federal Government ahead of Budget 2016.

It said ammong the key suggestions that were mooted included the introduction of a homebuyer friendly scheme by banks, especially for first time homeowners for properties priced up to RM500,000.

Others were the revision of the bumiputra quota policy, goods and services tax relief for affordable housing and controlled properties, reduction in the cost of doing business as well as higher supply of affordable housing.

“While most of these requests were not directly addressed or mentioned during Budget 2016, the government’s subsequent willingness to reconsider DIBS could be a boost, in our view.

“To be sure, based on the findings by the government’s Special Economic Committee, demand for affordable houses exceeds the present supply, more so in urban areas with a young population base,” said AmResearch.

The DIBS policy that was shelved last year, is among property cooling measures launched since 2013 to curb speculation and hike in prices.

It allowed developers to absorb mortgage interest during the property’s construction.

It was reported that Perbadanan PR1MA Malaysia’s recent finding showed that one million people in the middle income group, who earned RM2,500 to RM10,000 a month, had yet to own a home.

Of this number, 450,000 lived in the Klang Valley.

The removal of DIBS, along with inventory liquidation initiatives by developers could kickstart a recovery in transaction volumes, said AmResearch.

It added that such a move should assist in narrowing the discount to net asset value among property stocks.

It remained positive on Mah Sing Group Bhd, Malaysian Resources Corp Bhd and Titijaya Land Bhd.

Source: thestar.net

AmResearch’s top picks for Budget 2016 beneficiaries – Business News

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KUALA LUMPUR: AmResearch expects the gloves sector to benefit from the Budget 2016 because of its proposal for a special reinvestment allowance (RA) for companies that have exhausted their eligibility to qualify for RA.

It said on Monday its top buys are Top Glove and Kossan.

As for the hike in minimum wage, the research house expects the move would increase crude palm oil (CPO) production cost by less than RM20 a tonne.

“We are Overweight on the plantation sector with IJM Plantation as our top pick,” it said.

AmReseacrh said it also liked Inari within the technology space given its superior growth prospects from optimising its capacity expansion towards its high margin products.

The research house was Overweight on property equities with a Buy on Mah Sing, MRCB, E&O and Titijaya.

The sector is already trading on trough discount to net asset value of more than 50%.

“Budget 2016 reaffirms the execution of MRT 2 and LRT 3. Gamuda is a frontrunner for the tunnelling package of this RM28bil project. Econpile and Kimlun Corp are strong contenders for specialist works under the LRT/MRT projects.

“Construction earnings for MRCB are set to improve with the award of the PDP contract to the MRCB-George Kent JV.

“Teo Seng, a leading egg producer, is one of the cheapest consumer stocks. The rebound in egg prices from 28 sen an egg in 2QFY15 to 34 sen an egg in 3QFY15 combined with the timely addition of two new farms would underpin a strong earnings rebound in 2HFY15,” it said.

AmResearch said from the market’s standpoint, Budget 2016 was a non-event due to the absence of a significant uplift to corporate earnings or sentiment.

“In the near term, we expect the market to oscillate around our unchanged end-2015’s fair value of 1,650 for the FBM KLCI.

It would remain a trading market with funds nibbling on dips and locking in gains on liquidity-driven rebound. The market would continue to be supported by ample domestic liquidity. The key challenge though is the lack of conviction over the earnings momentum to establish a bottoming of the market,” it said.

With the exception of a select few exporters, the earnings revision cycle continues to contract due to margin compression from rising cost pressure and weaker-than-expected sales.

AmResearch’s bottom-up estimates now put the market’s earnings growth to just 2.2% for 2015 but it may still decelerate further approaching the year-end.

“We expect market recovery in 2016, where we are retaining our FBM KLCI fair value at 1,750 based on 16 times PE, and earnings to reaccelerate to 7.6% from 2.2% in 2015,” it said.

Source:http://www.thestar.com.my/Business/Business-News/2015/10/26/AmResearch-top-picks-for-Budget-2016-beneficiaries/?style=biz

Expo on crowdfunding and fintech

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LISTED Australian crowdfunding company CoAssets is organising the inaugural Expo for Property, Investing and Crowdfunding (Epic) in Kuala Lumpur on Oct 24 and 25 to highlight the potential of crowdfunding and financial technology (fintech) in Asia, as well as to connect investors to businesses.

“Crowdfunding in Asia, specifically in Malaysia, is gaining much interest.

“With the Malaysia Securities Commission (SC) issuing six equity crowdfunding licences in June 15, we believe more and more people will want to know what this new trend is all about,” said Getty Goh, CoAssets chief executive officer.

“Although CoAssets does not have an equity crowdfunding licence and we have not done any crowdfunding in Malaysia, we have been active around the region and would like to do our part for the local crowdfunding community.

“Hence, we felt organising a major expo would help bring topics like crowdfunding as well as fintech to a wider audience,” he said.

Goh said they had lined up many prominent speakers to share their crowdfunding expertise, including Elizabeth Siew, lawyer and managing partner of Iqbal Hakim Sia & Voo, and representatives from PropellarCrowdPlus and Eureeca, two of the six approved equity crowdfunding platforms in the country.

Property advisor and investment coach Milan Doshi will also be speaking, giving attendees a good mix of property, investment and crowdfunding presentations during the two-day event.

To create greater exposure to the crowdfunding ecosystem, CoAssets has shortlisted six startups to showcase their products and offerings at Epic. Startups looking for funding and business opportunities in Malaysia will also be participating in a pitching contest.

The most popular startup with the highest vote will be awarded with RM10,000.

Some of the startups involved in this contest include I Transcend, ParkEasy, Square Social Com-merce, ImageCrowd and Busttle Eco Ride.

There will also be a lucky draw, with participants standing a chance to win RM10,000 cash in prize. In addition, developer Hatten Properties will sponsor a three-day, two-night trip to Malacca.

Prior to this upcoming event, CoAssets successfully organised an Epic expo in Singapore in July.

The event attracted more than 900 participants, comprising industry stakeholders, businesses and investors. It also drew 16 exhibitors from eight countries, namely Singapore, Malaysia, Thailand, Indonesia, Mongolia, Cambodia, Australia and the UK.

MayBank, Propertyguru and Seristine Properties Ltd were among companies that attended the Singapore event.

In total, more than S$9mil worth of business deals were generated.

“We received positive feedback from exhibitors and event attendees,” reported CoAssets chief techinical officer Seh Huan Kiat.

“This is because unlike other expos, we try to organise sessions for businesses and investors to directly connect with each other.

“One such event is the Speed Networking Session, also known as SNS. This is similar to speed dating but it gives business owners an opportunity to meet as many investors as possible and vice versa.

“This provides some structure to break the ice, and we have found that exhibitors and attendees were able to have meaningful business discussions after that.”

Source: The Star Online

coassets-event

More information, kindly visit http://s.coassets.com/FF1

Developer interest bearing scheme proposed for first-timers

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PETALING JAYA: Mah Sing Group Bhd is proposing to the Government to bring back the developer interest bearing scheme (DIBS) for first-time home buyers.

The developer is also suggesting a review of the real property gains tax (RPGT) as among several measures to boost the sector.

“The property industry has a larger multiplier effect than other industries. Hence, stimulating the industry should therefore have a larger impact on the wider economy,” group managing director Tan Sri Leong Hoy Kum (pic) said in a statement yesterday.

As part of its wishlist for the upcoming Budget 2016, Mah Sing requested that DIBS be reinstated, but only for first-time homebuyers. This, it said, will make it easier for genuine homebuyers to lock in properties at current prices.

“We laud the Government’s continuous initiatives to encourage home ownership, especially for these buyers,” he said.

The property company also suggested that the Government conduct a review of the RPGT to encourage property investments.

“We are also aware of the government’s concerns about the affordability of properties,” he added.

Leong said total property transactions in Malaysia for the first half of 2015 fell 3.5%, while the value declined 6%.

He said that there was minimal speculation in the market as the number of borrowers with three or more outstanding housing loans made up for only 3% of total borrowers with housing loans.

In Budget 2014, the Government increased the RPGT on properties sold within the first three years of purchase to 30% from 15% previously, and also abolished the DIBS as a measure to curb the speculative market.

“In 2010, the government allowed a flat rate of 5% gains tax across the board and a minimum exemption of RM10,000 gain. Many lauded this move as it has greatly encouraged property transactions,” Leong said.

Mah Sing also urged Bank Negara to relax the lending requirements for first-time homebuyers as well as second-time home buyers looking to upgrade due to bigger families. Easier access to end-financing will assist genuine property purchasers, it said.

It added that the Government should increase the housing grant for youths to compensate for the implementation of the goods and services tax and higher cost of living.

The Government introduced the Youth Housing Scheme in Budget 2015 providing assistance to first-time homebuyers, such as a RM200 monthly financial assistance, 50% stamp duty exemption on transfer documents and loan agreements as well as a 10% loan guarantee.

The company also suggested a full exemption of stamp duty for those buying their first residential property to reduce the transaction cost, compared with the current 50% exemption.

“We would also like to urge the Government to extend the exemption or lower the stamp duty rates for all property transactions,” said Leong.

Furthermore, Mah Sing hopes the Government will consider further reducing personal income tax for the middle income group, so the rakyat would have more disposable income to invest in the property market.

It also suggested changing the status of low-cost housing to affordable housing, in order to allow the lower and middle income groups access to homes with better amenities and facilities.

“Currently it is adopted in Selangor. We hope to see a nationwide initiative towards building homes that meets the rakyat’s needs,” it said.

Source: The Star Online

GST First, Point of Sale (POS) Compliance Later

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Chinese chambers say authorities should not rush small businesses into installing a point of sale (POS) system, adding that it’s more important to educate them on GST compliance. JOY LEE reports.

SMALL traders should be given time to fully understand and comply with the Goods and Services Tax (GST) regime before the authorities enforce the compulsory use of point-of-sales (POS) system, says the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM).

National council member and chairman of SMEs and HRD committee, Koong Lin Loong, says small business owners are still unsure about how to be GST-compliant and are demanding better clarification on the requirement for a POS system.

Last week, Deputy Finance Minister Datuk Johari Abdul Ghani said traders must install POS systems to issue invoices that were printed and numbered, in compliance with the GST standard by Oct 1.

The ministry had identified six categories of businesses at retail level that had to have the POS system or at least a GST-compliant cash register, namely pharmacies, bookshops, grocery and sundry stores, hardware shops, mini-markets, eateries and entertainment outlets such as pubs and karaoke joints.

“We should not rush into forcing all these retailers to have a POS system. I think there should be more emphasis on educating them on full compliance of the GST first. Getting the POS is a good thing but there needs to be a timeframe for SMEs to adjust to the GST system first,” Koong says.

According to Koong, other countries that have implemented the GST such as Australia have also allowed pre-printed invoices as long as they contained details that are GST-compliant.

He notes that expectations for local SMEs to install a POS system over the next two to three weeks may be “harsh”.

“According to the Customs director general, all GST-registered company should not use handwritten invoices. They must use computer-generated receipts. So traders are confused because now they have to install POS. A lot of them don’t have POS and cash registers.

“Is it not good enough to use computer-generated invoices that is GST-compliant? Do they need to get new cash registers?

“There needs to be better clarity on what is a POS and a GST-compliant cash register for these small traders. SMEs want to comply but they are not sure how to,” says Koong.

He is also urging the authorities to give more leeway to small businesses in meeting deadlines, given that the past six months has been a transitional period for them to find their way around the new tax system.

He says SMEs are getting better after this learning stage and expects things to improve over the next six months as the authorities look into problems peculiar to individual industries.

Koong also applauds the Customs Department for their efforts in hurrying the GST refunds to businesses.

“Customs has done a good job in making the refunds. There were delays previously as there were cases of companies that had wrongly put the amount of the refunds, submitting the wrong forms or had inaccurate bank account and contact information.

“Customs has already clarified that they are not doing any auditing. They are also trying very hard to contact the companies for more information so that refunds can be made. This is good effort on their part,” he says.

Under GST Regulation 2014, refunds of input tax are to be made within 14 working days of online submission of claims, or 28 working days when done manually.

Over 92% of companies that had submitted their GST for the month of April have received their input tax refunds.

Koong believes that companies that have all their information in order should not have any issues in getting back their refunds.

One such company is education services provider LeapEd Services Sdn Bhd.

“We started preparations early. We brought in specialists to train our staff because we wanted to be prepared to manage the new system. We made a heavy investment to be GST-compliant because we wanted to be fully compliant.

“I think if a company is fully compliant, the system should work and there shouldn’t be much of a problem,” says CEO John Chacko.

Source: The Star Online