KUALA LUMPUR: LBS Bina Group Bhd wants the 2025 Budget to prioritise home ownership, innovative construction and green financing to shape Malaysia's real estate future.
This, it said, reflected the group's dedication to providing high-quality affordable housing, in line with both economic and environmental goals.
LBS recommended that the government bring back the Home Ownership Campaign (HOC) that ran from 2019 to 2021 as the programme, which provided stamp duty exemptions and easier loan terms, helped over 100,000 families buy homes.
"Bringing back the HOC would boost home sales, speed up property purchases, and create a positive outlook for the real estate sector," it said in a statement.
LBS said the government should offer financial incentives to encourage the use of the Industrialised Building System (IBS).
It said, even though tax exemptions for investments have been extended to 2025, it hoped there would be subsidies and grants to lower initial production costs for IBS.
It added that the widespread promotion of IBS would improve construction quality, reduce reliance on labour and enhance productivity in the construction sector.
LBS said it also supports government initiatives that promote the use of artificial intelligence in real estate development, adding that AI can enhance efficiency, safety and productivity in the industry while reducing operational costs.
"Therefore, LBS proposes that the government introduce AI training programmes and financial incentives to encourage AI-based innovation in the real estate sector as a whole," it said.
To strengthen green financing initiatives, LBS suggested to increase funding under the Green Technology Funding Scheme by raising the financing limit for green development projects from the current RM1 billion.
"This will help developers work on bigger green projects that support Malaysia's environmental goals and global sustainability."
LBS also wants the government to tackle rising costs so property prices stay affordable for Malaysians, promoting healthy growth in the real estate market.
"A report by the Real Estate and Housing Developers' Association (Rehda) emphasised compliance costs now account for 21 per cent to 33 per cent of the gross development value for urban projects and can reach up to 45 per cent for strata developments," it added.
LBS executive chairman Tan Sri Lim Hock San said the 2025 Budget has the potential to significantly shape the future of Malaysia's real estate sector.
"By making it easier to buy affordable homes, promoting technology like AI, and expanding green financing, LBS hopes to lead new opportunities, helping Malaysians own homes and creating a stronger and more sustainable real estate market," he said.
LBS is committed to building homes that meet Malaysians' needs and promoting sustainable development, believing that the government can drive long-term growth in the real estate sector by addressing challenges and implementing supportive policies for developers and homebuyers.