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a 15% increase in building materials
cost due to the increase in fuel and
electricity tariff.
Since 60% of a property
development comprised of building
materials cost, it is foreseeable
that the GCV of any development
will increase by at least 9%. This
imposition of 6% GST will further
burden the contract cost as well.
This, SHAREDA opined that overall
property selling prices will be
increased by 5% in 2014. The
overall construction will further
increase by another 3.6% if GST is
to be implemented in April 2014,
making a total increase of 12.6% of
construction cost in 2014.
listed companies from Peninsular
Malaysia.
Believing that affordability should
progress with time and that the
capping of prices for houses should
be done based on the free market
force, SHAREDA is appealing for
the retraction of the policy and is
providing a counter proposal with a
promise that they will build 10,000
units affordable homes within the
5 years.
Proposed Counter Proposal for
Affordable Homes
SHAREDA requests that the
Government provides incentives
such as:
SHAREDA’S Reasons for Opposing
the Mandatory of 30% Affordable
Home Policy and Implementation
Mechanism
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