Call to review processing fees for property purchase by foreigners

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  • Tuesday, 22 Oct 2013

JOHOR BARU: A local MCA leader has called for a review in the high processing fees of property ownership for foreigners who purchase properties in Johor that was recently proposed by the state Housing and Local Government exco.

Pulai Sebatang assemblyman Datuk Tee Siew Kiong opposed the proposed fee of between 4% and 5% of the buying price that foreigners have to pay, saying that it was quite high.

Tee, who is also state Domestic Trade, Consumerism and Tourism exco, said the state still needed foreigners to spur the Iskandar Malaysia economy and the high percentage might drive them away from purchasing properties in Johor.

“The matter is still in discussion and the state government has not come to a concrete decision yet so there is still time to review the percentage,” he told Star Metro here.

It was reported that Housing and Local Government executive councillor Datuk Abdul Latif Bandi said that beginning from January next year, foreigners buying properties in Johor would have to pay the fees instead of the flat rate of RM10,000 now.

Under the new rate, which only applies to foreigners, they would have to pay between 4% and 5% of the sales price of the properties.

Latif said that the flat rate had been around for so long and that the state government was the one losing the revenue that it was supposed to get from foreigners.

Tee has since suggested for non-governmental organisations, property development associations and contractor associations to come forward to give their views and suggestions.

“The feedback is needed as there are still three months for us to work out the nitty-gritty details to come up with a feasible amount that is a win-win situation,” he said.

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