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SG Medini to get more incentives

Property Here - Wednesday, November 06, 2013

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Medini in Iskandar Malaysia is likely to see more advantages in addition to the current incentives it already has when the area is granted exemption from real property gains tax (RPGT) to ensure that the area remains favoured by property investors, according to media reports.

Following the announcement of the 2014 Budget in Malaysia in October, rumours circulated that Medini will be exempted from the measures introduced.

To end the speculation, Johor’s Iskandar Regional Development Authority’s (IRDA) enquiry to the Malaysian Finance Ministry about Medini’s excemption from the latest property measures, media reports revealed.

In a statement to the local media, IRDA chief executive Ismail Ibrahim said they are in the process of obtaining confirmation from the ministry. He added: “If the recently announced RPGT rates are not applicable in Medini, then the impact of the revised RPGT will be positive as demand will then turn towards Medini.”

Two weeks ago, Malaysian Prime Minister Datuk Seri Najib Tun Razak announced that the RPGT will be raised from 15 percent to 30 percent for properties sold within the first three years for companies and individuals.

The RPGT for properties disposed of within the fourth year was also increased to 20 percent and 15 percent for those sold within the fifth year for both companies and individuals.

Commenting, Ismail said “The exemption from price ceiling will certainly make Medini more attractive to property buyers.”

An urban township in Nusajaya Johor, Medini boasts no restriction on foreign ownership and no bumiputra ownership quota. Companies in this area are also exempted from the Economic Planning Unit’s property acquisition guidelines, while businesses are given flexibility to hire foreign knowledge workers.