Tax Update-1998 Budget Issues


Other Issues
   

 

The buoyant development of real estate has resulted in the excess supply of high priced properties. To meet the current situation, it is proposed that the guidelines on foreign ownership of properties be changed as follows :-
a. the 30% quota on sale of condominiums at prices of more than RM250,000 to foreign interests be increased to 50% for projects which have commenced construction from October 17, 1997.

b. each foreign interest be allowed to acquire two units of condominiums and any further acquisition be subject to condition of having to incorporate a company; and

c. a permanent resident be allowed to acquire dwellings priced at below RM250,000 but above RM60,000 on condition that the spouse is a Malaysian citizen or has applied for the status of Malaysian citizen.
   
  The Human Resource Development Fund (HRDF) was launched in 1993 to encourage
private sector participation in training and skill upgrading of employees. Currently, HRDF
covered the following categories of employers :-
 
Manufacturing sector
  • Employers with 50 employees or more.
  • Employers with 10 but not more than 50 employees and with a paid-up capital of RM 2.5 million and above.
Service sector ie, hotel, air transport, tour operating business & travel agency business, shipping, telecommunication, freight forwarders, postal or courier, advertising and computer services
  • Employers with 10 or more employees.
   
  It is proposed that the HRDF scheme be extended to other sectors such as energy, education and consultancy fields. In addition, it is proposed that the securities industry also establishes its own scheme to encourage training.

[page 24 of 27]

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