Jeff Ooi claim that he is unable to benefit from Budget 2006. Politics 101 Malaysia commented that this is a NEP Budget! Rational Thinking complaint that there is too few comment on Budget 2006 among Malaysian bloggers.
Everybody want to know which is the beneficiaries sectors before tomorrow stock market open?
Property Sector:
1) Setting up Yayasan Amanah Hartanah Bumiputra to buy prime commercial properties for bumiputra. This create demand for commercial properties.
2) One life time Real Property Gain Tax (RPGT) exemption is now given separately to husband and wife. Jeff Ooi's wife can now buy a property and can sell it next year with profit (This is highly likely given the high oil price that push inflation rate higher, property usually is a good hedge against inflation, unlike bank saving, your fixed deposit today might not able to buy the same amount of petroleum next year.) Such profit is not subject to RPGT ( Which can up to 40% of your profit)
3) The process of issuing strata title will be simplified based on the issuance of certificate of fitness.
4) Estimated losses on low cost houses can be used to offset estimated profits of other real property development projects for tax purpose.
5) All local government one stop centre would added 334 position to expedite licensing, permit approval, collection of rates and assessment and fine and penalty process. This is method of improve competitiveness of civil service is debatable as people want reduction of government staff to improve competitiveness, however, such move benefit property sector as they deal a lot with local government.
6) Abolish section 132G of Companies Act
7) Stamp duty and RPGT exemplted on Merger & Acquisition (M&A) of listed companies from Oct 1, 2005 to Dec 31,2007
8) All MSC-status company can buy a property in cyberjaya and entitle for 50% claim of Industrial Bulding Allowance(IBA) for 10 years. Thus, if Jeff Ooi's business is MSC-status company. Again, his company can buy a property in cyberjaya and entitled for 50% claim of IBA for 10 Years.
Wow! Jeff Ooi alone can buy two property to benefit from Budget 2006. What do you think the potential on property sector?
Other than property sector, legal profession-conveyance Lawyer also would benefit as they perform property transaction.
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