SPEECH BY CHIEF MINISTER OF PENANG, YAB TUAN CHOW KON YEOW
AT MAPEX 2018
21 JULY 2018 AT UDINI SQUARE
Yang Berbahagia Dato’ Yew Tung Seang,
Datuk Bandar, Majlis Bandaraya Pulau Pinang
Yang Berbahagia Dato’ Rosli Jafaar, Pengurus Besar, Perbadanan Pembangunan Pulau Pinang
Yang Berbahagia Dato’ Toh Chin Leong, Chairman of REHDA Penang
Yang Berbahagia Dato’ Jerry Chan, Immediate Past Chairman REHDA Penang
Mr. Ng Chin U, Organsing Chairman, MAPEX 2018
Councillors of MBPP and MPSP
Heads of Department from MBPP, MPSP and all government agencies
Chairman and representatives from the Public and Private Corporations, Associates and Professional Bodies
Fellow Committee Members and members of REHDA Penang,
Distinguished guests, ladies and gentlemen
I must first of all, thank Dato’ Toh Chin Leong, Chairman of REHDA Penang for your invitation to this morning’s launch of MAPEX 2018. It is indeed a pleasure for me to be here.
I understand that the theme for MAPEX 2018 is “Stock Clearance Sale” where REHDA has gathered a vast selection of properties from their members to be sold at greatly discounted prices that is only available during this MAPEX 2018 fair only. This is the opportunity for prospective buyers to obtain quality homes at greatly discounted prices.
The rate of the Goods and Service tax (GST) had been reduced to 0% with effect from 1st June 2018 and the Sales and Service Tax (SST) will be reapplied only in September. This means that the RM43 billion which the Customs department targeted to be collected as revenue for GST this year will be pumped back into the economy, which will improve the purchasing power for the people. The zero rate of GST will be able to persuade more people to go out and invest in properties now that they no longer have to pay for GST. This will definitely promote economic growth as well as lend a boost to the property sector.
According to the NAPIC report, Penang’s property market performance softened further in 2017. Transactions decreased by 9.6% in volume although value increased by 8.6% against 2016. In the residential sub-sector, there were 12,090 transactions worth RM5.41 billion recorded in the review period which is a decline of 8.7% in volume but value increased slightly by 0.9%. The primary market recorded fewer new launches with 3,879 units. The numbers were down by 31.3% compared to 2016. However, sales performance was promising at 39.0%.
The State Government is aware of the soft property market and has agreed to the request from REHDA to waive the 1.5% levy for foreign purchasers as well as a waiver of 2% levy imposed on sub sales within 3 years of purchase. This special waiver from the State is only for properties promoted in this MAPEX 2018 fair only. All savings from the discounts on these levies which are given to the buyers will be contributed by the respective developer to the Tabung Harapan Malaysia Fund.
REHDA Penang has always played a vital role in bringing about development for the people of Penang in terms of creating new townships, job creation and business opportunities. It is the state government’s vision and commitment that every Penangite will be able to afford their own home. The state government is aware of the current unfavourable economic situation and the state government is working closely with REHDA to resolve the challenges faced by the industry. The State Government believes in engaging the public and in advocating consultation and dialogue not only with developers but with other NGO’s to bring about a better quality of life for the people of Penang. The State Government has considered many of REHDA’s requests either through our State Planning Committee or through the SPEAD Committee Meetings and many of the representations made by REHDA Penang had been accepted.
I am optimistic that the State’s property market is expected to be promising as this is supported by the State’s strong economic fundamentals as well as upcoming infrastructure projects for transportation such as the Penang Transport Master Plan which continues to be a key agenda for Penang Island. I wish you success in MAPEX 2018 and I am confident that today’s event would be beneficial to participants, industry players as well as potential buyers.