Malaysian government has 'favourable' view towards investment

The Malaysian government's decision to limit the reintroduction of capital gains tax (RPGT) on real estate is indicative of the favourable view it holds towards property investment, it has been claimed.

Malaysia's Property Investment Organisation (MPI) has voiced its approval over the new plans.

The move means that the only properties that will now be taxed are ones sold in under five years of their original purchase date.

In an interview with the Overseas Property Professional website an MPI spokesperson said that they were pleased that the government had taken on board feedback given to them from within the industry.

"This policy still reflects the government's pro-investment [position] and yet would safeguard the Malaysian property industry against speculation. As serious property investors usually take a longer view of their investment horizon, the amendment to the RPGT would appeal to this target group of investors for the industry," he said to the property website.

Last year Property Abroad reported that Datuk Seri Kong Cho Ha, the housing and local government minister, had expressed optimism about the near future as the Malaysian economy improves.