NST RED Cover Story: Moderate Expectations

In last Friday’s issue of NST: RED, I was also asked to give my opinion on the property market outlook for 2013.

My views as extracted from the Cover Story: Moderate Expectations, is reproduced below:

Richard Oon, National Tax Director of TY Teoh International:
Budget 2013 has implemented several moves to further curb property speculation. One of these was the further increase in RPGT (Real Property Gains Tax) rates from 10 to 15 per cent for properties that are disposed of within two years from the date of acquisition, while those sold within three to five years will be subject to a RPGT rate of 10 per cent instead of the previous 5 per cent. My opinion is that this increase will have little effect on property speculation as the incremental 5 per cent increase in the RPGT rates would not be material. Besides, speculators who purchase properties from developers upon launch would probably sell them upon completion which would be more than two years later subjecting them to only 10 per cent RPGT rate.
The other move, which in my opinion will yield better results in curbing property speculation is the allocation of RM1.9 billion by the government to provide 123,000 units of affordable housing to the public through several government agencies. Although the full impact of the government’s initiatives to curb speculation may not materialise fully in 2013, I expect property prices to cool down somewhat in 2013.
The newsprint version can be viewed below:

Read the full article here: COVER STORY: Moderate expectations – RED – New Straits Times http://www.nst.com.my/red/cover-story-moderate-expectations-1.192190#ixzz2GJfbue7d

About Richard

Richard Oon Hock Chye has more than 25 years of experience in taxation and business advice, with particular expertise in Malaysian property law. He began his taxation career with Deloitte Touche Tohmatsu, a ‛Big Four’ accounting firm, before starting his own practice, ConsulNet Tax Services Sdn. Bhd., in 1996. He is currently the National Tax Director of TY Teoh International, one of the leading consulting service providers in Malaysia. It is a member of the MSI Global Alliance, a global network of more than 250 independent legal and accounting firms, in over 100 countries. Richard sits on the board of two companies listed on the Main Board of Bursa Malaysia, as an independent non-executive director. He is also a regular contributor to several magazines and publications, and has shared his tax expertise on numerous occasions with organisations and property developers. As well as being a member of the Malaysian Institute of Accountants (MIA), Richard is a fellow member of both the Association of Chartered Certified Accountants (ACCA) and the Chartered Tax Institute of Malaysia (CTIM). He is a Certified Financial Planner (CFP) and holds a tax agent licence issued by the Ministry of Finance. Richard is also the author of the book, ‘Every Property Investor’s Guide To How To Pay Less Tax Legally’.

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