The federal government of Malaysia has extended the special tax holidays and other incentive packages in Medini, Nusajaya by another 10 years even though the current privileges are yet to expire.
The current privileges were supposed to expire on 31 December 2015, while the 10-year extension runs from 1 January 2016.
According to the Iskandar Regional Development Authority (IRDA), the early announcement aims to boost investor confidence and ensure that Medini remains competitive.
Notably, property developments in Medini offer a number of perks such as zero restrictions on foreign ownership. They are also not subject to the real property gains tax (RPGT) and RM1 million (approx. S$386,000) minimum property price for foreigners.
“In order to attract investments into Iskandar Malaysia, we have to offer incentives to investors who are promoting the nine key economic sectors under our Comprehensive Development Plan for 2006 to 2025,” said IRDA CEO Datuk Ismail Ibrahim.
The nine key economic sectors are health, food and agro-processing, tourism, electrical and electronic, education, petrochemical & oleochemical, financial services, logistics and related services, along with the ICT and creative industry.
“I must stress here that property is not one of the nine key economic sectors we are promoting. However, Medini was created at that point of time as we needed a particular location to promote Iskandar Malaysia,” he noted.
Another reason for the extension is that there are still large tracts of unused land in Medini, which would need more time to be developed.
Farah Wahida, Editor of PropertyGuru Malaysia, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
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