The 10% Bumiputera Property Discount In Selangor Is No Longer Exclusive
This implementation will be line with Selangor state government's new guidelines for housing development.
By Nandini Balakrishnan — 29 Aug 2016, 05:46 PM — Updated over 8 years ago
The 10% Bumiputera property discount applies to all races
Selangor executive councillor Teng Chang Khim denied that the 10% Bumiputera discount in the state has been abolished for the purchase of certain properties.
Instead, he said prices were made uniform for certain properties under the state's affordable housing programme whereby the 10% discount would apply to all, regardless of their race.
"We offer this to low and middle-income groups, so there is no reason for Bumiputera to be given discount and non-Bumiputera not to receive discount because they are equally poor," said Teng when contacted by Malaysiakini yesterday, 29 August.
He was asked to respond to a front-page Nanyang Siang Pau report yesterday, 29 August, which claimed that the 10% Bumiputera discount would be abolished for certain properties.
malaysiakini.com
29 AUGUST: The Pakatan-led Selangor state government announced today, 29 August that Bumiputeras are no longer entitled to 10% discounts for certain properties in the state
The three properties that fall under this new ruling are serviced apartments, Soho (small office home office) and Sovo (small office versatile office)
Selangor Investment Committee chairman for Industry and Commerce, Small and Medium Enterprises and Transportation Datuk Teng Chang Kim made the announcement today, 29 August.
Image via SITECExplaining the move, Selangor Investment Committee chairman for Industry and Commerce, Small and Medium Enterprises and Transportation Datuk Teng Chang Kim said that this is in line with the state government's implementation of new guidelines for housing development, as reported by Chinese daily Nanyang Siang Pau today, 29 August.
Teng also mentioned that the Selangor state government will start determining the prices of the said properties.
A Soho is a space that allows people to incorporate their living area with their work space. They are modest in size, designed with bedrooms, full-fitted bathrooms, and a living area.
Sovo, on the other hand, refers to small offices that come fully equipped with telecommunication and infrastructural facilities that allow for immediate business start-ups. Owners of these units must be prepared that to pay assessment, water, and electricity and telephone bills based on commercial rates, which are generally higher than residential rates.
cloudhax.com
Teng revealed that under the government's affordable housing guidelines, the ceiling price for a serviced apartment is RM270,000 while a Soho or Sovo unit can sell for up to RM230,000
"The ownership of these properties is open to everyone, regardless of their race," he was quoted as saying.
Teng added that the household income requirements for applicants have also been increased to RM15,000 a month, from the previous RM8,000 a month.
"However, buyers with household incomes of less than RM10,000 will be prioritised. If they fail to secure loans, only then will the sales (of units) be extended to those earning more than RM10,000," he said.
"The state government has spoken to developers in the state and taken in their feedback prior to drafting the guidelines. We believe the guidelines will pacify all parties involved, including the state government, developers, and house buyers," added Teng.
While the 10% discount has been scrapped off, the state government assured that the 30% Bumiputera ownership equity still stands
Under the New Economic Policy (NEP) introduced in the 1970s to eradicate poverty, promote a fairer distribution of opportunities and to dissociate Malays and other indigenous races with traditional agriculture, Bumiputeras are entitled to special quotas and discounts for things like real estate purchases, housing, and automobile.
One of the main changes made when NEP was introduced was the restructuring of the economic ownership in the country. It was initially 2.4:33:63 ratio of Bumiputera, other Malaysian and foreigner ownership and it was the changed to a new ratio of 30:40:30.
This new housing guideline will come into effect on 1 September and further details and explanation on it is expected to be provided on the same day