I apologize for the lack of updates here for a bit - been busy over the Hari Raya holidays and somehow tied down to lotsa work and so on. Oh, before I forget, I would like to wish all my Muslim readers a Selamat Hari Raya Aidilfitri...
And so, for Volume 2 of the Construction & Property 101, I shall bring to you some of the highlights of September 2009. One of the key events that happened in September was the deferment of the Stamp Duty Act - which meant that those in service industries, and especially construction players would have more time to adapt because the Act had been deferred until 2011.
The Government had previously imposed a 0.5% tax on the contract value in ordinary service agreements, inclusive of construction contracts. The rates were previously fixed at RM10. A change in this stamp duty rates would mean that construction costs would increase by at least 1-2% - which would most likely and ultimately be transferred to the end users and consumers.
Deferring this Stamp Duty Act had been vital to manage the costs of development and construction - and the construction industry welcomes this deferment with open hands.
And so, for Volume 2 of the Construction & Property 101, I shall bring to you some of the highlights of September 2009. One of the key events that happened in September was the deferment of the Stamp Duty Act - which meant that those in service industries, and especially construction players would have more time to adapt because the Act had been deferred until 2011.
The Government had previously imposed a 0.5% tax on the contract value in ordinary service agreements, inclusive of construction contracts. The rates were previously fixed at RM10. A change in this stamp duty rates would mean that construction costs would increase by at least 1-2% - which would most likely and ultimately be transferred to the end users and consumers.Deferring this Stamp Duty Act had been vital to manage the costs of development and construction - and the construction industry welcomes this deferment with open hands.
Another key highlight of the month was the announcement of the RM7billion LRT extension - which has a multiple domino effect. For starters, an expanded LRT system would reduce traffic congestions and so on; it would also create more job opportunities in the construction and its related industries, enhancing the earnings of the construction players. The expanded LRT will also enhance property values and appreciations along its routes - indirectly boosting the economy in multiple ways.
Setia Walk, by S P Setia Many newer developments along the routes of the expanded LRT stand to benefit from this new amenity/infrastructure - including S P Setia's Setia Walk, IOI's various developments in Puchong as well as Sime Darby's Putra Heights.
I think the construction and property development industry in Malaysia is poised for a big boom - in fact, apart from the new LRT expansion, there is also another mega project waiting in the sidelines - the new Low Cost Carrier Terminal (LCCT) at KLIA.
The LCCT - picture courtesy of The Star. With these projects all coming up, the industry is in for an exciting time!
Eric Yong
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