PETALING JAYA: The withholding tax framework remains an essential strategic instrument, says the Malaysian REIT Managers Association (MRMA).
In a statement, it said: “With Malaysia’s real estate investment trust (REIT) market capitalisation at US$13bil – representing about 3% of our total stock market – the sector is demonstrating strong potential but requires continued nurturing to achieve its full contribution to the economy. Our regional landscape offers a clear parallel.”
MRMA chairperson Leong Kit May said established markets like Singapore, with a REIT sector constituting 10% of its market, continued to employ facilitative tax regimes to sustain growth and global competitiveness.
“Thailand and Indonesia similarly maintain supportive frameworks for their developing sectors. We see this not as a request for preferential treatment, but as a partnership opportunity to build a world-class capital market.”
The current framework has been the bedrock upon which the sector built a RM60bil industry that supports real estate development, construction, and service sectors.
“Its continuity would signal confidence and enable us to scale new heights.”
According to MRMA, the framework is a strategic policy tool that directly supports national goals by enhancing Malaysia’s investment appeal, ensuring competitive yields to attract the long-term foreign capital essential for economic growth.
The framework would facilitate strategic asset development, enabling capital recycling into priority areas like digital infrastructure, logistics and sustainable buildings.
MRMA also said the framework would deepen capital market sophistication, contributing to a more diverse, resilient and dynamic financial ecosystem.
“The association has always enjoyed a constructive relationship with the Finance Ministry, Securities Commission and other regulatory authorities. We are committed to continuing this collaborative dialogue and stand ready to provide any necessary data or analysis to support a review of this decision for the mutual benefit of all stakeholders and the nation.”
MRMA hoped for a favourable reconsideration, allowing the REIT sector to continue its journey as a stable, growth-oriented pillar of the capital market.
