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No citizenship for foreigners buying homes in Malaysia

LANGKAWI — No automatic citizenship will be given to foreigners purchasing properties in Malaysia.

Dr Mahathir Mohamad explained that the move to allow foreigners to buy condominiums and apartment units was due to a huge property overhang nationwide.

Dr Mahathir Mohamad explained that the move to allow foreigners to buy condominiums and apartment units was due to a huge property overhang nationwide.

LANGKAWI — No automatic citizenship will be given to foreigners purchasing properties in Malaysia.

Malaysian Prime Minister Tun Dr Mahathir Mohamad explained that the move to allow foreigners to buy condominiums and apartment units was due to the huge property overhang currently occuring nationwide.

He said that not only was the huge property overhang causing financial losses to the sector, the government was also forced to make the decision to allow these properties to be sold at a lower price.

“Locals can also now purchase it at such a price, as we have allowed the construction of such properties (condominiums and apartments) and now it cannot be sold, resulting in the nation facing losses.

“We want to sell the properties, and after selling the properties (overhang), we can revert to the ceiling price back to RM800,000 (S$262,322) or RM1 million. In this way we will be able to sell the excess (property) well,” he said at a press conference at the Langkawi Development Authority office on Sunday (Oct 13).

Dr Mahathir, who is the member of Parliament for Langkawi, earlier attended the Langkawi District Action Council meeting where he was briefed on the developments taking place on the island.

The Malaysian Prime Minister reiterated that the properties purchased by foreigners could only be used as a holiday home and would not see them being given Malaysian citizenship.

In tabling the 2020 Budget last Friday, Finance Minister Lim Guan Eng announced that price threshold of the sale of condominiums and apartment units to foreigners would be reduced to RM600,000 from the previous ceiling of RM1 million.

The Finance Minister said this was to reduce the supply overhang of condominiums and apartments, which amounted to RM8.3 billion in value in the second quarter of 2019.

However, many asked the government to review the proposal due to concerns that developers will build more properties specifically to be sold to foreigners. NEW STRAITS TIMES

Related topics

property Malaysia Mahathir Mohamad citizenship foreign real estate condominiums

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