Malaysia's Budget to increase real property gains tax (RPGT) will dampen market short term but rise up prices eventually

GEORGE TOWN: The Federal Government should leave real property gains tax (RPGT) alone in the 2014 Budget.

New Bob Group director Dr Lee Ville said that if the RPGT is increased, then it will dampen the property market, which has already started to cool.

Lee is also president of ERA Malaysia, which is the world’s leading real estate brand.

It is expected that the Federal Government will raise the RPGT rate to 30% from 15% for properties sold within two years, and 15% from 10% for properties sold within three to four years.

For properties sold in the fifth and sixth year, the RPGT is expected to remain unchanged at the current 10% and zero RPGT respectively.

“The anticipated RPGT will not deter foreigners from buying, as they are allowed to dispose their properties only after the third year,” he said.

Mont’Kiara and Sri Hartamas apartments Kuala Lumpur

Lee said the anticipated RPGT would work in the initial stages, curbing speculation in the short term.

“If implemented, developers will respond by reducing their delivery of residential housing projects.

“This will eventually lead to a shortage, triggering demand and causing property prices to rise up again in the long term,” he said.

Lee said the Federal Government should look into controlling price, other than cement, of essential building materials, as the rising price of raw materials was a reason for soaring property prices.

Meanwhile, Raine & Horne Malaysia director Michael Geh (pic) said the RPGT would hurt current speculators who had already bought properties, and not the future ones who had yet to buy properties.

“If the existing speculators are hurt, the banks will also be dragged down.

“The Federal Government should look at curbing speculation through other means such as providing middle-income homes with an effective delivery mechanism that ensures only the eligible income category benefits,” Geh said.

Contributed by  BY DAVID TAN The Star/Asia News Network

Related Post:
Time for crucial fiscal reforms: Malaysia Budget 2014 - Rightways 

LiFi, instead of WiFi: Chinese scientists achieve Internet access through lightbulbs

Lightbulbs may one day be used for connecting to Internet

Successful experiments by Chinese scientists have indicated the possibility of the country's netizens getting online through signals sent by lightbulbs (LiFi), instead of WiFi.

Four computers under a one-watt LED lightbulb may connect to the Internet under the principle that light can be used as a carrier instead of traditional radio frequencies, as in WiFi, said Chi Nan, an information technology professor with Shanghai's Fudan University, on Thursday.

A lightbulb with embedded microchips can produce data rates as fast as 150 megabits per second, which is speedier than the average broadband connection in China, said Chi, who leads a LiFi research team including scientists from the Shanghai Institute of Technical Physics of the Chinese Academy of Sciences.

With LiFi cost-effective as well as efficient, netizens should be excited to view 10 sample LiFi kits that will be on display at the China International Industry Fair that will kick off on Nov. 5 in Shanghai.

The current wireless signal transmission equipment is expensive and low in efficiency, said Chi.

"As for cell phones, millions of base stations have been established around the world to strengthen the signal but most of the energy is consumed on their cooling systems," she explained. "The energy utilization rate is only 5 percent."

Compared with base stations, the number of lightbulbs that can be used is practically limitless. Meanwhile, Chinese people are replacing the old-fashioned incandescent bulbs with LED lightbulbs at a fast pace.

"Wherever there is an LED lightbulb, there is an Internet signal," said Chi. "Turn off the light and there is no signal."

However, there is still a long way to go to make LiFi a commercial success.

"If the light is blocked, then the signal will be cut off," said Chi.

More importantly, according to the scientist, the development of a series of key related pieces of technology, including light communication controls as well as microchip design and manufacturing, is still in an experimental period.

The term LiFi was coined by Harald Haas from the University of Edinburgh in the UK and refers to a type of visible light communication technology that delivers a networked, mobile, high-speed communication solution in a similar manner as WiFi.

Contributed by Shanghai Xinhua  Editor: Fu Peng

Related news:

•	In pictures: In-flight WiFi service begins now
•	China flies first civil airplane with wifi
•	Free wifi spots to be expanded across Thailand: authority
•	London provides WiFi services for first time at underground stations
•	Air China starts trial of in-flight WiFi service

Micro-LED LiFi: Where every light source i

South China Sea breakthrough helps China, Vietnam build trust, boost cooperation

Chinese Premier Li Keqiang (R, front) meets with representatives of youth from both China and Vietnam at Vietnam National University in Hanoi, Vietnam, Oct. 15, 2013. (Xinhua/Liu Jiansheng)

The establishment of a bilateral work group to discuss joint maritime development was a "breakthrough" for China and Vietnam on their way to peacefully handle maritime disputes, analysts say.

During the talks with his Vietnamese counterpart Nguyen Tan Dung, Chinese Premier Li Keqiang urged the two sides to pursue substantive progress in their joint development in waters out of the mouth of the Beibu Bay, a semi-enclosed sea whose delimitation remains under negotiation between China and Vietnam, and accumulate experience for broader maritime cooperation.

Analysts said the establishment of the group sends a positive signal of the bilateral readiness for solving difficult problems through cooperation, and the two countries are taking a step-by-step approach in solving the disputes.

"Joint development in waters out of the mouth of the Beibu Bay is acceptable to both sides. The approach that the two countries are taking is to start with the easiest and then to the difficult," said Zhang Yunling, a researcher with the Chinese Academy of Social Sciences.

The relationship between China and Vietnam has been overshadowed by maritime frictions in the South China Sea, but the two countries have made efforts to maintain frequent high-level exchanges this year. Li's visit followed trips of the Vietnamese president, prime minister and deputy prime minister to China earlier this year.

The South China Sea issue involves several parties and the disputes between China and Vietnam are, in deed, bigger and more complicated, said Wu Shicun, president of the National Institute for South China Sea Studies (NISCSS).

"The agreement reached by China and Vietnam, undoubtedly, send a clear message to other claimants that putting aside bickering on sovereignty and sitting at the table for joint development is a pragmatic choice. The attempts to internationalize the South China Sea issue will result in the deterioration of bilateral ties and worsen the situation," Wu said.

The decision to establish the group was announced just two days after China and Brunei vowed in a statement to encourage closer joint exploration and exploitation of maritime oil and gas resources in the South China Sea.

In a pioneering move, China National Offshore Oil Corporation and Brunei National Petroleum Company Sendirian Berhad have inked a deal on establishing a joint venture on oil field services.

Considering that disputes between Beijing and Hanoi over the South China Sea have, from time to time, upset bilateral ties in recent years, the multiple results Li's visit to Vietnam achieved are clear evidence that the two neighbors are showing a greater political will to rise above their disputes and forge a mutually acceptable path of cooperation, said Qu Xing, president of the China Institute of International Studies.

Li returned to Beijing on Tuesday after attending the East Asia leaders meetings and paying official visits to Brunei, Thailand and Vietnam.

-  HANOI, Xinhua

Related:

South China Sea Conflict