The construction sector in Malaysia is anticipating that the government will turn down the intensity of import duty on construction machinery when the announcement of budget 2015 will take place that will certainly a symbol of prosperity for all associated businesses that will perk up the productivity of the industry.
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The CEO of Construction Industry Development Board (CIDB), Datuk Seri Dr Judin Abdul Karim reported, the use of high-tech machineries may drive away the demand of manual labor.
The association of construction industry (CIBD) is associated with the Ministry of International trade and Industry with the intention to foster the productivity of the businesses.
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Datuk further added, “The present stance of import taxes over construction machinery stand at top level 20-25 percent which needs to be curtailed down to five percent.”
The construction industry of Malaysia posted a significant growth rate of 14.3 percent among all sectors during the period of early six month of 2014.
On series node, the government is desperate to keep up the similar growth momentum in the second half and upcoming year which can be supported by governmental assurance for possible cooperation in projects and prospective outlays from private business community.
According to Matthew Tee, the head of Master Builders Association of Malaysia (MBAM), “The lowering down the import duties on construction machineries will definitely enhance the economic conditions of the industry’s businesses and encourage them to invest heavily in importing heavy machineries.
The industry players have been appealing from the authorized official for last 8 years that, decline in high import duties over heavy construction equipments is necessary for bringing some positives which is comparatively lower than other Asian countries.
Master Builders Association of Malaysia (MBAM) is only demanding to mitigate the heavy import taxes from those machineries that are not assembled in Malaysia. In most of the Asian countries, the import taxes range from 0 to 5 percent, said Lee.
The government believes on the fact that they will not lose their income size in the case of declining the import taxes but it will certainly give confidence to industry’s associates to augment the circle of machinery purchasing.
From the perspective of real estate sector, Manokaran Mottain, a research economist expecting that government will take some reasonable measure that will curtail down the high real estate prices by keeping the increasing indebtedness of housing units into consideration.
Even though, the growth of housing price index was quiet reasonable during the first quarter of 2014 reflecting 8 percent which is lower than 11 percent in prior year, means the residential housing prices are affordable to general public. Specifically, the first-time households buyers is the major interest area to the government, added Mottain.
As a matter of fact, it is the first time when as an enticement of 50 percent of stamp duty has been exempted for first-time home buyers that makes up to RM400,000 is due to expire end-2014. He hoped that the government would maintain this incentive in proportion to different household affordability measures into consideration.
