Strata Title Act 1985 ( amendments)

The Strata Title Board will be set up under the amendments to resolve disputes between Property owners and management companies. Disputes need no longer be brought to court as the Board would deal with the problems between property owners. This will speed up with process of solving disputes.

The amendments will also result in property owners being fined RM 5, 000 for not paying maintenance fees to managers of the property. They would also be fined RM 50 each day until the fee was settled.

Under the Act, developers who did not apply for strata titles would also pay heavier fines of between RM 10,000 and RM 100,000 and a daily fine RM100 to RM 1,000 until application was made.

The Bill was passed on the 8th May 2001.

Exemption of STAMP DUTY on property ( 28-3-2001 to 31-12-2001 )

The above exemption apply only to properties which have already been completed and purchased from registered developers.

For buyers to benefit from the exemption, developers would have to be registered under the Housing Developers Association of Malaysia, Sabah & Sarawak.

The types of property eligible for exemption include residential homes, condominium units, apartments and low-cost flats, office lots and industrial property including factories.

Info dated 10-5-2001

Good news ! for property investors, " FIC RELAXES RULES ON PROPERTY PURCHASES"

The Foreign Investment Committee ( FIC ) has relaxed its rules to allow foreign citizens to buy all types of local property costing above RM250,000 without having to form a company with Malaysian equity participation.

They will now be allowed to source for funds to make such property purchases from local banks.

Previously, foreign citizens were only allowed to buy projects that were fully completed or properties that were at least 50% completed and financing had to be sourced externally.

The changes in the FIC guidelines have been made to encourage private investment and improve the investment climate in Malaysia.

The government is aware that Malaysia is facing an economic environment that is more challenging as a result of slowing global economic growth and competition for foreign direct investment.

The government continues to be committed to maintaining an open economic and business -friendly environment.

Under the revised rules, which are effective restropective to April 25, 2001, Malaysian citizens and companies also no longer require approval from FIC to make property transactions costing below RM 20 million. They now only have to report such transactions.

Malaysian also no longer need FIC approval for property acquistions below RM 10 million.

Also companies engaged in manufacturing activities that are exempted from licensing by the Ministry of International Trade and Industry are now allowed to buy industrial or factories lots for manufacturing purposes.

Regional headquaters & branches

To encourage foreign companies to set up their headquarters and or regional offices in Malaysia such companies will be allowed to establish headquaters and branches costing above RM250,000 in Malaysia without domestic equity conditions.

Companies in other Asean countries wishing to establish joint ventures or conduct business in Malaysia will also be allowed to own offices of office space costing above RM 250,000 without domestic equity conditions.

Foreigners will also be allowed to buy properties priced above RM 150,000 in designated areas under Silver- Haired Programme

Source : The Star Paper dated 4th May, 2001.

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Posted : 7th May, 2001