My blog get a lot of search via Google search engine below for Real Property Gain Tax 2007 (RPGT)recently. Actually, the matter has been widely reported in mainstream media. As a lot of reader search for such topic. I just give my two sen worth here.
One thing that I would like to remind all people: THE Real Property Gains Tax Act 1976 (RPGTA) has not been abolished but exempted with effect from April 1,2007.
This mean that the government can re-introduce the RPGT if the market become too speculative. This can happen as the government have a track record of inconsistency in it policy. One of the example is make short selling become illegal during Asia financial crisis.
The exemption of RPGT, together with comprehensive changes to the public delivery system in the property sector means that we have shift our focus on attracting FDI in manufacturing sector to Property sector. Will Malaysia become Hong Kong where property sector become dominanat in it economy?
The star has reported that: It is not widely known that Carmen had played a key role in the Government’s recent move to abolish real property gains tax (RPGT) to reboot a languishing housing market.
Early this year, she was invited by Noordin Sopiee & Associates (NSA) - an offshoot of ISIS founded by the late Tan Sri Noordin Sopiee - for a closed-door presentation, together with three other corporate bigwigs (Lion Group's Tan Sri William Cheng, Tan Sri Rozali Ismail of Syabas, and Kuala Lumpur Kepong Bhd's Datuk Lee Hau Hian).
Her area of focus – how to revive the property sector, one of the pillars of the economy, to aid the nation’s target to grow private investments by 11%. Carmen, together with like-minded friends at NSA, essentially advocated and made a strong case for the abolishment of RPGT.
Truth is, the idea to abolish RPGT is not new. It has been lobbied for so long and by so many but the campaigns, until now, had fired blanks. The difference this time is there appears to be a concerted political will to see it through.
Who is Carmen Chua? She is daughter of Datuk Chua Ma Yu, co-founder of Rashid Husssein Security or RHB Group, founder of Waterfront Group and the person who advocated the merger of plantation group in the country....now under Synergy Drive.
Carmen Chua is a 20 something managing director of ONE KLCC Sdn Bhd. In US, You have seen a number of 20 something boss like Microsoft's Bill Gates, Yahoo's Jerry Yang. In Malaysia, we have Tony Pua. I have also personally work for a 20 something managing director before. He is a selfmade millionaire and extremely competitive.
The only different is....she is female and her father still sit on the board as chairman.
Carmen also sit on the board of Waterfront Incubator and Furniweb Industrial Products Bhd. Carmen has bought a 13.9% stake in Furniweb Industrial Products Bhd.
Another Mah Sing
Mah Sing's CEO Datuk Leong Hoy Kum has in 1992 acquired 20 unit of condominium at Mont Kiara area. In 1993, with shares market super bull run. Rumours said that Datuk Leong amass more than RM20 million in profit. It is not sure whether he paid RPGT at that point of time.
If Datuk Leong have to pay RPGT at 40%. It amounted to RM8 million. It is believe that he has arranged with the buyer for the buyer to bear the cost of RPGT.
Since then, Mah Sing, from a plastic manufacturing company, successfully transform to a property development company and the rest is history.
Now, without RPGT. It is less hassle to repeat what Datuk Leong did in 1993. The problem is....how the stock market perform compare to 1993?
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