The Malaysian Institute of Estate Agents (MIEA) expressed its concerns over the plight of an estimated 25,000 real estate agents (REAs) and real estate negotiators (RENs).

The movement control order (MCO) has brought the real estate fraternity to a standstill.

Property agents and negotiators are unable to help home buyers take vacant possession, perform viewings or physically lists any property for sale or rent during the MCO, said MIEA president Lim Boon Ping.

As with other Malaysians, the morale and finances of REAs and RENs have been adversely affected, especially given most of them rely on a sales commission without a basic salary.

“We are also concerned that the market has taken a shift and that new strategies be placed to help balance the shift”, Lim said.

As such, MIEA outlined a proposal to urge the government to come to the aid of REAs and RENs.

The proposal includes a request for various incentives and tax waivers to be given to the public and special assistance or relief associated with the stimulus package to be extended to property agents, negotiators and agencies.

The proposal also appealed for the compulsory Continuous Professional Development Programme (CPD) and Continuous Development Programme (CDP) be deferred and for REAs and RENs to be granted an automatic renewal to practice in 2021.

MIEA secretary-general Serene Sew said MIEA has been proactive and has taken initiatives to help member agents by establishing an ‘MIEA Covid19 Helpline’ in aid of those needing assistance.

Additionally, MIEA launched an ‘MIEA-HOPE Program’ to assists agents throughout the country on methods to assist their clients and on self-development.

These programs are live on Zoom webinars and Facebook at 10am and 3pm daily until April 14, 2020.

MIEA expressed support for the government with all the steps taken to combat the Covid-19 outbreak and extended its help should it be required by the authorities.

The full details of the proposal by MIEA are as below:

For the public

• That collection of the SST for Real Estate transactions be placed in ‘abeyance’ until the end of the year to help sellers from having to incur additional costs.

• That the RPGT be zeroized as in 2007 till the end of the year to help boost the already soft real estate market. This will help sellers reduce losses when faced with a ‘push down price demand’ from buyers.

• To allow for a transfer of 10% of the EPF funds in Account 1 to Account 2 to provide liquidity for the purchase of homes or assistance in the repayment of loans after the moratorium of six months.

• MIEA had in its budget proposal last year suggested for the option of ‘Interest Only Loans’ for the purchase of properties. Perhaps this would be the right time for this to be reconsidered, especially after the six-month moratorium as a longer-term measure for first-time house buyers.

For the real estate fraternity

• That assistance be given to the RENs to pull through these difficult times. We commend the government for coming up with a stimulus package that leaves no one behind. We, therefore, seek for the automatic extension of the benefits made available for e-hailing and subsidies for income earners less than RM2,000 and household below RM4,000 to be extended to the real estate fraternity. This includes registered estate agents, probationary estate agents and RENs registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers Malaysia (BOVAEAP).

• That a segment of the Special Relief Facility for Covid-19 be dedicated for the 1,300 registered real estate firms to keep them afloat and to avoid retrenching their staff.

• To allow for a transfer of 10% of the EPF funds in Account 1 to Account 2 to provide liquidity for the purchase of homes or assistance in the repayment of loans after the moratorium of six months.

• MIEA had in its budget proposal last year suggested for the option of ‘Interest Only Loans’ for the purchase of properties. Perhaps this would be the right time for this to be reconsidered, especially after the six-month moratorium as a longer-term measure for first-time house buyers.

To Real Estate Portal Companies:

• MIEA requests all real estate portal companies whom the real estate fraternity have fully supported throughout the years to give favourable incentives and cost-benefit packages to agents. This is to boost their advertising budget, which in turn can directly help to market properties for their clients.

To the Minister of Finance and BOVAEAP 

• It is compulsory for the 25,000 RENs and REAs to attend the CPD and CDP every year and for the 2020 session. We propose that relief should be provided in that all CPD and CDP programmes be deferred to 2021 and that all the REAs and RENs who at this point of time are registered or certified with BOVAEAP are given automatic renewal to practice in 2021. This will go a long way for everyone to continue working legally and help them financially.

On a separate note, StarProperty recently interviewed Lim on matters regarding the real estate and the movement control order (MCO) as well as MIEA's plans to help property agents.

Watch the full interview here.

He speaks on how MIEA has moved all training and seminars online as a fast reactionary measure to the movement control order (MCO).

Lim then shares upcoming plans MIEA has to help the public and property agents including the launch of a property transaction database populated by agents, credit checks for potential home buyers to address common pain points and MIEA’s very own agent to agent listing platform.

The interview is also a must watch as he takes the time to address common questions asked by property agents during the MCO, including if it’s possible to close sales during this period.

“Change is inevitable so the speed of your adaptability to the change will determine your success”, says Lim.

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