If there are no restrictions within the title of the property, the owner should have little difficulty selling the property to a non-Bumiputera purchaser, said Chris Tan.
THIS has been a sore topic for property developers, buyers and investors for decades since its enactment in the 1970s under Malaysia’s New Economic Policy (NEP).
To compound matters further, state authorities are given full control over land matters except for federal territories. Hence, Bumiputera quota regulations fall under the state government’s jurisdiction, which differs from state to state.
In some states, the discounts are at 15%, and the allocation can be at 60%. For example, Selangor has one of the highest allocations with 60% for low-cost commercial units, 50% for other commercial units, 50% for low-cost industrial units and 40% for other industrial units. For residential property, there is no fixed allocation as it depends on the state’s discretion.
The discount is 7% for residential property and 10% for commercial and industrial properties except for low-cost units.
In contrast, the discount is pegged at 5% for Kuala Lumpur and developers are to allocate 30% of residential or commercial property to Bumiputeras.
Given that most of Malaysia’s population comprise of Malays and Bumiputeras, why has this become an issue? Home buyers want to buy a place to live in while investors want to make money off their investments.
A chunk of the negative perception of Bumi units is due to the exit strategy, in that the market generally is of the contention that non-Bumi units fetch a higher price.
Click for original post from Star Property, 5 June 2020 :
What will it take to switch the negative view of Bumi lots to positive ones
“This is a policy consideration, rather than a matter of law. The discretion is most often with the approving authority, and no reason needs to be provided for the decision,” said Chris Tan.
In the event a proper title to the property has yet to be issued, it would be prudent for both the buyer and seller to consult the developer in charge for any potential hindrance in facilitating a transaction.
You may also interested in other “BUMI” related information.
Conversion to Non-Bumi Property
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