Government Introduces Incentives For Automotive And Housing Markets
Author Avatar


In an effort to stimulate consumer sentiment in the automotive and housing market, the government will be providing tax exemptions and financial incentives for both sectors. This was announced by Prime Minister Tan Sri Muhyiddin Yassin during the reveal of the PENJANA Economic Recovery Plan.

Malaysians will be given 100% sales tax exemption for the purchase of locally assembled cars, starting from June until 31 December 2020. Alternatively, you can enjoy a 50% sales tax exemption if you purchase an imported car instead.

Meanwhile, the housing market will see a few initiatives carried out to reinvigorate the industry. Firstly, the government will reintroduce the Home Ownership Campaign, which previously ran throughout 2019 to support home buyers looking to purchase properties. Through this campaign, Malaysians will be exempted from paying the stamp duty for land title transfers and loan agreements if they are purchasing homes valued between RM300,000 to RM2.5 million.


The stamp duty exemption for land title transfers will be limited to the first RM1 million of the value of the property, whereas full exemption is given for loan agreements. This initiative is applicable for purchase agreements signed between 1 June 2020 to 31 May 2021, subject to a rebate of at least 10% from the developers.

Secondly, Malaysians taking on a third home loan will not be subject to the financing limit of 70% of the value of the property (valued at RM600,000 and above) during the period of the Home Ownership campaign. Instead, it is subject to the internal risk management practices of the financial institution offering the loan.

Lastly, real property gains tax (RGPT) is also exempted for Malaysians who wish to sell their residential properties between 1 June 2020 to 31 December 2021. That said, this is limited only to three residential properties per individual.

2.4 5 votes
Article Rating


Comments (1)

Notify of
1 Comment
Inline Feedbacks
View all comments
1 year ago

Hope this short term economic recovery plan may help those in automotive and properties market. Thank you for the write up, easy for us to understand. Appreciate it.

Top Personal Finance News Articles
Top Personal Finance News Articles
Post Image
Petrol Price Malaysia Live Updates (RON95, RON97 & Diesel)
The RinggitPlus Team
- 26th January 2022
We provide weekly updates on every Friday at 5pm on the prices of RON95, RON97 and Diesel in Malaysia and a chart that shows the movement of fuel prices across a 6-week period. Bookmark this page now!
Post Image
Shopee Introduces SPayLater, Lets Users Buy Items Now And Pay Later
Alex Cheong Pui Yin
- 18th January 2021
Shopee has introduced a new payment feature that lets its Malaysian users purchase items and pay for them […]
Post Image
Best High Interest Savings Accounts In Malaysia (October 2021)
Pang Tun Yau
- 6th October 2021
Make your money work for you by depositing them into the best high-interest savings accounts in Malaysia!
Post Image
Historical EPF Dividend Rates
The RinggitPlus Team
- 3rd March 2021
Ever wondered how this year's EPF dividend rate compares to previous years? We got you covered with our historical 11-year chart!

Related articles

Related Posts Image
Related Posts Image
Related Posts Image
Related Posts Image