Tony Pua on removing discount for property buyers

July 27th, 2010 by poobalan | View blog reactions Leave a reply »
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Did you read about the couple whose buying a house for RM300K and hoping to get good discount for being in the privileged group? I think its something wrong. And so, I agree with Tony Pua’s suggestion. In fact I would go as far as to suggest that only residential properties for the low income category buyers (monthly income below Rm1500 in Selangor, or RM750++ elsewhere) should be given bumiputra discount as they can do much with the savings. If you can afford to buy property for more than 150k, then no special discount for you.

The responsibility of helping the poor should not be pushed to the rest of the house buyers based on their race. If you can afford it, then you should also do your part. Isn’t it fair?

PJ Utara MP Tony Pua urged the Selangor government today to slash Bumiputera discounts for luxury homes and commercial property in the state, to improve competitiveness and restore investor confidence.

“Sacred cows need to be slaughtered,” said the chief economist for the DAP.

Pua’s statement, which will raise eyebrows among the country’s Malay majority population, follows a recent United Nations report which showed that Malaysia’s Foreign Direct Investment (FDI) had plunged 81 per cent last year.

However, Pua (pic) said the seven per cent discounts enjoyed by Malays and other Bumiputeras should be retained for homes below RM500,000.

“I am not against affirmative action but not for homes that cost RM1 million or RM2 million,” said Pua.

He argues that no discounts should be given for commercial property above RM2 million.

The Oxford graduate, who was among panellists at a dialogue to discuss Selangor’s 2011 budget, pointed out that many “brokers” were taking advantage of the policy.

Pua said effectively these units are being bought by middlemen, with a seven per cent discount, and then re-sold for profit of two per cent.


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