Malaysia Budget 2023:
Corporate & Tax Highlights
31 Mar 2023
Prepared by Halim Hong & Quek
Articles
On 24th February 2023, Datuk Seri Anwar Ibrahim, the Prime Minister and Finance Minister of Malaysia has retabled the much-awaited revised Budget 2023 with the underlying theme of “Membangun Malaysia Madani” (“Revised Budget 2023”) in Parliament. The total allocation of the Revised Budget 2023 has increased from RM332.1 billion in the previous budget to RM388.1 billion, making it the highest ever in the history of Malaysia. The total allocation is split between administrative expenses (RM289.1 billion) and development expenses (RM99 billion).
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Real Estate Budget Highlight
Credit Guarantee Scheme
Syarikat Jaminan Kredit Perumahan (“SJKP”) will grant government guarantees of up to RM5 billion to those without a stable income for the purpose of securing housing loans. This target to benefit 20,000 borrowers.
Housing Projects For Low-Income Group
RM50 million will be allocated for the People’s Housing Project (“PPR”) to ensure the condition of the existing buildings are safe for the residents, mainly on the replacement and maintenance of lift services. In addition, there are several ongoing new PPR projects involving allocation of RM367 million for the benefit of 12,400 potential homeowner. 4,250 housing units with the allocation of RM358 million will also be built under the program Rumah Mesra Rakyat.
Small And Medium Enterprises (“Smes”)
Government agencies will support SMEs by providing various loan facilities of up to RM40 billion whereby for microentrepreneurs, loan facilities of RM1.7 billion is allocated under Bank Negara Malaysia, BSN and TEKUN Nasional.
Development In Kuala Lumpur
RM30 million is allocated to increase liveability of public housing in Kuala Lumpur. DBKL will collaborate with ThinkCity to revitalise life in the city centre through beautifying projects in focal locations as well as raising the potential of historic and cultural assets.
Sustainability
Khazanah Nasional Berhad provides RM150 million to boost environmental-friendly project development. This includes supporting the carbon market and reforestation. In addition, the enforcement of Green Technology Financing Scheme (“GTFS”) will be improved by increasing financial guarantee to RM3 billion until 2025.
Satu Anggota Satu Rumah (“Sasar”) & Malaysian Armed Forces (“MAF”)
Government will build more than 7,000 affordable housing units under Program Satu Anggota Satu Rumah (“SASaR”) in Kuala Lumpur for MAF. Currently, the members of MAF who leave service or retire without pension are required to make full settlement of their LPPSA loan at once. To reduce their burden, government will allow the members of MAF to continue loan repayments as usual until full settlement.
This effort enables 4,000 borrowers to restructure their LPPSA loan and 700 prospective non-pensionable borrowers each year to repay their loans as usual.
This effort enables 4,000 borrowers to restructure their LPPSA loan and 700 prospective non-pensionable borrowers each year to repay their loans as usual.
Stamp Duty For Transfer Of Property By Way Of Love And Affection
Currently, 100% stamp duty exemption is provided to transfer of property by way of love and affection between spouses only. Under the Revised Budget 2023, the said exemption will be extended to transfer of property by way of love and affection between parents and children, grandparents and grandchildren but limited to the first RM1 million of the property’s value. The remaining of the property’s value will be subjected to ad valorem duty rate and given 50% remission on the stamp duty imposed. This stamp duty treatment will be applicable to the recipients who are Malaysian citizens and to instrument of transfer of property executed from 1st April 2023 onwards.
Extension Of Stamp Duty Exemption On Restructuring Or Rescheduling Of Loan/ Financing Agreement
Full stamp duty exemption on restructuring or rescheduling of the loan/financing agreement will be extended until 31 December 2024.
Stamp Duty Exemption For First-Time Homebuyer
Full stamp duty exemption provided for first-time homebuyer on the purchase of properties valued at RM500,000 and below and 75% stamp duty exemption for properties valued between RM500,001 to RM1 million.
