“We are hopeful that Budget 2024 will bring about a significant change and positive influence,” said Lim.
PETALING JAYA: Following the recent StarProperty special pullout published on Oct 6, several property developers have put forward their Budget 2023 wish list. Property developer LBS Bina Group Bhd's (LBS) wish list for Budget 2024 which will be tabled in Parliament on Oct 13 is as follows:
Revival of the HOC
Amidst the current inflationary challenges, the cost of essential items, including housing, has increased. To ease the financial strain on the public, especially for those aspiring to become first-time homeowners, we wish to suggest the government explore additional measures. Specifically, we propose the reinstatement of the Home Ownership Campaign (HOC). The HOC's effectiveness during its previous run from 2019 to 2021 is well-documented. Therefore, reintroducing it would stimulate demand, promote homeownership, and expand choices and affordability for prospective buyers.
Incentives for adoption of IBS precast system
The government should consider providing special incentives or subsidies for developers who incorporate the Industrialised Building System (IBS) precast system into their housing projects, as this can help reduce construction costs and make housing more accessible. These short-term incentives can pave the way for the widespread adoption of IBS precast systems in the property sector. The ultimate goal is to achieve higher construction efficiency, cost-effectiveness, and sustainability while maintaining or improving overall construction quality.
Strengthening environmental incentives
With the increasing global interest in sustainable and green buildings, the capital expenditure to design, and develop sustainable and carbon-neutral buildings can be an added cost to local developers, especially when it can be higher than conventional buildings.
The government should continue to support and expand green building development and consider providing grants to developers to encourage industry players to incorporate more green features into their developments, such as the use of renewable energy sources including solar panels. In addition, financing support for green financing with lower interest rates should also be considered.
Lower compliance costs
Through our commitment as a people’s developer, LBS prioritises affordability in all its projects. Nevertheless, the expenses related to compliance, such as development charges, land conversion premiums, or strata title application fees, have been on the rise. Developers and contractors are frequently compelled to transfer these costs to consumers through higher property prices. Given the current economic climate, we kindly request that the government consider imposing limits or reducing compliance costs associated with the development of a property.
Urban growth via infrastructure development
Sustainable urban growth is a key goal for many governments worldwide. Infrastructure development is a cornerstone of this objective, as it directly impacts the quality of life for urban residents and the long-term viability of cities.
With this, we recommend the government provide incentives to developers for them to incorporate smart technologies into their projects, such as energy-efficient building systems, smart grids, waste management solutions, and intelligent traffic management systems.
Commenting on the wish list, LBS executive chairman Tan Sri Lim Hock San said: “We are hopeful that Budget 2024 will bring about a significant change and positively influence the sentiment in the property market through the introduction of stimulus packages. This budget presents an opportunity for the government to assist the general public in addressing everyday challenges, particularly related to homeownership.
"The formation of a unity government is expected to create an environment that can attract more investors, foster economic growth, and enhance the overall well-being of the population. We eagerly anticipate the government's commitment to ensuring the availability of adequate, high-quality, and affordable housing options, allowing more people to realize their dream of owning a home.
"Furthermore, building on our sales target of RM2 billion for 2023, we are optimistic that the government will introduce initiatives that will further support our ongoing projects. We are looking forward to witnessing a robust recovery in the property market.”
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