Budget 2013

I think HUA YANG will benefit for 1st home ownership.

OSK-DMG: Budget 2013 may bring cheers to developers
Business & Markets 2012
Written by Isabel Francis of theedgemalaysia.com   
Wednesday, 26 September 2012 11:23

KUALA LUMPUR (Sept 26): The upcoming Budget 2013 may bring cheer to property developers but leave the alcohol and tobacco players in slight dismay, according to OSK-DMG Economic Research.

In a note Tuesday, OSK-DMG said it expects favorable policies for the property sector to be announced in Budget 2013.

“There could be more incentives and reliefs for first time home buyers as well as allocation of more land for affordable housing and other supply-side measures,” it said.

It also does not expect further tightening of the property market like the increase in the Real Property Gains Tax (RPGT) last year.

However, it said there may be a rise in sin taxes on alcohol and tobacco products to help boost the government’s coffers.

It also expects another round of goodies such as cash handouts to low income households, special bonuses to civil servants and assistance to school children or university students and elderly.

The research house said it was likely to be another postponement of the goods and services tax and its concomitant lowering of personal and corporate income taxes.

“But there could be an one-off income tax reliefs or deductions for both corporate and individuals to help ease costs of doing business or living on income earned, spousal or child support etc,” said the firm.

OSK-DMG expects more business-friendly fiscal policies and incentives to be introduced to help business owner, especially small medium enterprises, to address the rising cost of doing business.

The research house expects limited fiscal consolidation and more subsidy allocation instead to help with cost of living concerns with subsidies likely to come in around RM36 billion in 2013, up from the original 2012 budget allocation of RM33.2 billion.

“We do not expect any cuts, particularly to fuel subsidies, or the resumption of the subsidy rationalization programme to take place until after the elections,” it added.

OSK-DMG expect the country to see a deficit of 4.3% of gross domestic product (GDP) for 2013, which is lower than 2012’s expected deficit of 4.7%, on the assumption that the economy  grows by 4.9%.