About Sactuary Row

A freehold commercial development at Permatang Sanctuary by IJM in Bukit Mertajam. Located along Jalan Santuari 2, right across the road from Sanctuary Villa. It is only 2km away from AEON Mall and Tesco Hypermarket, about 15-minute drive to Juru Auto-City and Penang Second Bridge. This development features 24 units of double-storey shop offices.

*Photo taken in Sep 2024

Find out more about Sanctuary Row

Transport Minister Anthony Loke dismissed claims that the government is planning to introduce inheritance tax in the upcoming 2025 Budget, scheduled to be tabled on Oct 18.

Loke said he had never heard of such a proposal in cabinet meetings.

He was referring to a report quoting analysts from local banks that claims that the government will introduce new taxes.

“What is concerning is that these assumptions and rumours are believed by certain parties.

“There are DAP members of parliament who believe that the government will introduce such taxes,” he said in his address at the Federal Territories Kuala Lumpur DAP Ordinary Convention here today (Oct 13).

Also in attendance was DAP stalwart Tan Sri Lim Kit Siang.

“Government policies only become official if they are presented in parliament, and so far, there has been no discussion regarding inheritance tax.

“Therefore, do not trust these assumptions, as analysts can make all sorts of assumptions,” he said.

Loke said the decision-makers responsible for establishing policies are the government and the cabinet, and these must be ratified by members of parliament, not analysts from banks.

“The government is taking measures to ensure an increase in revenue and economic growth.

“At the same time, expenditures must be prudent, with no leakages or corruption involved. That is the government’s focus,” he said.

On Oct 3, a Malay daily reported that the government is expected to introduce five new taxes in the 2025 Budget, aimed at promoting healthier lifestyles and sustainable living.

The proposed taxes include the unhealthy food tax, carbon pricing tax, inheritance tax, high-value goods tax (HVGT) and Artificial Intelligence (AI) tax.

Source: NST Online

One year after the commencement of Silicon Island’s development in September 2023, the project has already demonstrated significant progress and positive outcomes for Penang’s economy, environment, and local communities. This ambitious initiative, undertaken by the Penang state government, has achieved numerous milestones in its first year, showcasing the broad benefits it brings to the region.

One of the most remarkable achievements is the creation of over 35 acres of new land, which will serve as the foundation for the Green Tech Park. This cutting-edge industrial zone will house an LRT depot, public recreational spaces, business opportunities, and affordable housing. It marks a major step toward a future-focused, sustainable development strategy for Penang.

Economically, Silicon Island has injected over RM1.4 billion into the local economy, contributing to the creation of jobs and the growth of local businesses. More than 1,500 contracts have been awarded to local traders and contractors, and over 370 Malaysians have gained employment as a direct result of the project. These efforts reflect the project’s focus on driving sustainable economic growth.

The initiative has also brought tangible benefits to Penang’s fishing community. Over RM10 million in financial aid has been disbursed to 680 fishermen, helping them improve their livelihoods. In addition, 97 fishermen have received new boats equipped with advanced engines and technologies, enhancing their safety and productivity. A further 482 fishermen have enrolled in fully funded seafarer upskilling programs, enabling them to adapt to changing industry demands.

Hundreds of fishermen’s children have also benefited from educational initiatives, including career guidance and STEM programs, which are fully funded by the Silicon Island project. These programs aim to provide the next generation with the knowledge and skills needed to thrive in a rapidly evolving world.

Environmentally, the project has planted 23,200 mangrove trees as part of its ecology offset masterplan, creating new marine habitats and supporting biodiversity. Local fishermen have reported an increase in marine catch due to the new land protecting their fishing grounds from strong waves. According to data from the Department of Fisheries, the last quarter of 2023 saw a rise in marine catches, with no evidence of fish depletion.

These outcomes, shared by Joshua Woo Sze Zeng, the State Assemblyman for Pulau Tikus, highlight how Silicon Island has positively impacted Penang in just its first year. With benefits spanning economic, social, and environmental dimensions, the project is set to continue transforming the region for years to come.

The National House Buyers Association (HBA) has voiced strong opposition to the proposed reintroduction of an inheritance tax in Malaysia’s 2025 Budget. The tax is one of several measures being considered to broaden the country’s tax base and increase government revenue. However, HBA secretary-general Datuk Chang Kim Loong argues that such a tax penalises years of hard work and amounts to double taxation on assets that have already been taxed during the owner’s lifetime.

The inheritance tax, which was abolished in 1991, has resurfaced as a potential fiscal tool, alongside other proposed taxes such as those on unhealthy foods, carbon pricing, high-value goods, and artificial intelligence (AI). While the unhealthy food tax aims to curb obesity, and the carbon pricing tax aligns with environmental goals, the inheritance tax is intended to prevent the concentration of wealth within families, thereby reducing economic inequality.

Despite these objectives, Chang expressed his concerns about the inheritance tax’s unintended consequences, particularly on middle-class families and small business owners. He stated that the tax would disproportionately affect those who have worked hard to acquire assets, particularly property, and who intend to pass these assets on to future generations.

“The inheritance tax is effectively imposing a tax on inflation,” Chang explained. “If a taxpayer has worked hard, paid taxes, and invested in assets such as property, commodities, and equities, it is utterly unfair for these assets to be taxed again upon their death. It is everyone’s aspiration to improve their economic condition and provide a better start in life for their children.”

Chang also highlighted the fact that property often represents the largest portion of a family’s wealth. For many Malaysians, their homes are not just investments but legacies intended for future generations. By taxing inherited property, the government would, in his view, be unfairly targeting individuals who have used property as a hedge against inflation.

To illustrate his point, Chang cited the example of a property purchased in 1977 for RM20,000, which increased in value to RM380,000 by 2020. While this may seem like a significant gain, he pointed out that much of the increase is due to inflation over the 43-year period. Adjusting for an estimated inflation rate of 5.5%, he calculated that around 55.5% of the property’s increased value could be attributed to inflation.

“If an inheritance tax is introduced, it would be based on the property’s current market value, meaning that beneficiaries would essentially be paying a tax on the inflation that occurred during the property’s ownership,” Chang said. He further noted that in cases where the beneficiary could not afford the tax, the government could potentially seize the property, putting the beneficiary in a precarious financial situation.

Chang also warned that the reintroduction of an inheritance tax could discourage wealth generation and lead to capital flight. He argued that such a tax could undermine efforts to encourage economic growth and success, driving successful individuals to relocate their wealth and investments to more tax-friendly countries.

A proposed review of the National Housing Policy will make home ownership more affordable while increasing disposable income, says Datuk Seri Dr Ahmad Zahid Hamidi.

The Deputy Prime Minister said the review may be necessary because of the increase in household debt to gross domestic product (GDP) ratio from 67.2% in 2002 to 81.2% in 2022.

“The property sector continues to dominate household debt, with housing credit increasing from 36% in 1997 to 59.7% in 2022,” he said in a statement after chairing the third National Action Council on Cost of Living (Naccol) 2024 meeting on Thursday (Oct 10).

“This trend is seen as having a significant impact on disposable income levels, and the meeting agreed to examine the matter further, particularly in the context of credit growth amid wage stagnation, especially for the lower 70% of households.”

Also present were Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali, state government representatives, corporate figures, NGOs, industry players and consumers.

Ahmad Zahid said the Finance Ministry should take up the policy review proposal with Bank Negara and the Housing and Local Government Ministry.

“This includes reviewing the provision of long-term housing loans to ensure that individuals and less capable households can own homes without being burdened by rising prices, particularly long-term housing loan financing,” he said.

The Statistics Department also presented the Cost of Living Indicator 2023, developed to provide an overview of the total expenditure required by households to meet a decent standard of living.

The meeting was also informed that this indicator will be launched by the Prime Minister on Nov 2, Ahmad Zahid said.

“This new indicator is expected to add value to government policy-making related to the cost of living, including implementing aid distribution, especially to targeted groups.”

The meeting also discussed co-payment features for medical and health insurance and takaful (MHIT) products, presented by Bank Negara.

It was informed that the co-payment system provides consumers with more choices, and encourages healthy competition among insurance or takaful providers to match the financial situation of consumers.

“According to Bank Negara, co-payment can offer prices between 19% and 68% lower than products without co-payment, indicating a good balance between supply and demand in the country’s medical and health sector.

“We discussed the implementation of two co-payment features to help create a conducive and sustainable health ecosystem through transparency in medical bills,” Ahmad Zahid added.

Source: TheStar.com.my