Highlights of the Malaysia's Economic Recovery Plan

With the theme of Generating the economy together, Prime Minister Tan Sri Muhyiddin Yassin today unveiled the RM35 billion Economic Recovery Plan (ERP) which is focused on 3 core issues, namely:

1. Empower the people
2. Propel businesses
3. Stimulate the economy

“The plan will cover 40 initiatives with a total of RM35bil, out of which RM10bil will be of direct fiscal injection. This is due to the fact that plenty of jobs and businesses are affected during the movement control order, and the economy will take time to fully recover,“ he said during the live session.

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Good news to Property Buyers (and Property Developers...)

The government re-introduces the Home Ownership Campaign (HOC), which offers stamp duty exemption for name transfer letters and financing agreements for properties priced from RM300,000 to RM2.5 million, and 100% stamp duty exemption for the financing agreements.

The exemption for name transfer letters applies to the first RM1 million of the property value, while the exemption for the financing agreements is 100%.

The exemption is applicable to the sale and purchase agreements (SPAs) inked between June 2020 and May 2021, subject to a minimum 10% discount provided by developers.

Lastly, something for manufacturers...

The PM announces a 0% tax rate across 10 years for new investments of RM300 million to RM500 million in fixed assets for manufacturers, expanded to 15 years for investments above RM500 million.

The location transfer and operation ramp-up must be done within a year from the approval date, while the amount must be invested within 3 years.

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