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The Home Ownership Campaign should be expanded to include secondary markets, according to Deloitte Malaysia

Published: Thursday, 28 October 2021

The Home Ownership Campaign (HOC) campaign may be expanded to secondary markets in order to boost the property market, according to Deloitte Malaysia.

The current HOC, which ends on December 31, 2021, applies only to new properties registered through the campaign by specific developers.

"The Government could consider extending this campaign to the secondary markets, thereby providing a wider range of properties for homebuyers to choose from," the firm said in a statement titled "2022 Pre-Budget Expectations Q&A".

According to Deloitte Malaysia, for those who are struggling to repay their home loans, the government may consider providing income tax relief on interest accrued on these loans after the moratorium period expires.

The government could consider incentivizing financial institutions to waive interest accrued for those in the bottom 40 per cent of household income (B40) category by providing additional tax deductions, it said.

Deloitte Malaysia said the pandemic has reaped a toll on businesses and as businesses shutter, the credit taken goes bad and banks are saddled with the loss.

It said that banks cannot recover the capital they have employed and this has a knock-on effect on future lending.

"The government should look at how tax rules can help cushion this blow, perhaps by incentivising business rescue financing, similar to how the financial rescue of abandoned housing projects was incentivised several years ago, and perhaps giving a special tax credit equal to the losses suffered as a result of debts going bad," it said.

Deloitte Malaysia said tax incentives can also be used to encourage lending and investment in specific projects and market segments in line with the government's objectives such as tax breaks for investors in strategic infrastructure projects that improve internet connectivity, environmentally sustainable projects, and projects that support the B40 community.

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