Will Budget 2020 cut developers’ rising 5–10% cost pressures?

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Budget 2020's Impact on Developer Cost Pressures Remains Unspecified

The provided information details the Real Estate and Housing Developers’ Association's (Rehda) proposals for Budget 2020 aimed at reducing the rising cost of doing business for developers. However, the content does not confirm whether Budget 2020 ultimately implemented any of these requested cuts to the 5-10% cost pressures faced by developers.
Rehda's Concerns Regarding Increased Business Costs

Developers have reported a significant escalation in their operational expenses, with costs for construction materials and consultancy services experiencing an increase of between five and 10 percent. Rehda attributes this rise to various mandatory requirements and charges imposed on developers. These include land conversion premiums, capital contribution charges for infrastructure and utilities, and stamp duties. Rehda argues that reducing these business costs would allow developers to pass on savings to consumers, leading to more affordable housing.
Proposed Reductions in Developer Charges and Fees

Rehda has specifically called for a review of charges levied by private utility companies such as Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Indah Water Konsortium Sdn Bhd (IWK), Tenaga Nasional Bhd (TNB), and Telekom Malaysia Bhd (TM). The association contends that these companies should not impose capital contribution charges, as developers already bear the responsibility for laying infrastructure and bringing new customers to these utilities. Furthermore, Rehda suggests reducing the deposit requirement for the Housing Development Account (HDA) from 3.0 percent of Gross Construction Cost (GCC) to 1.0 percent, or alternatively, allowing withdrawals based on project completion milestones.
Calls for State and Local Authority Review of Impositions

Beyond federal charges, Rehda has also urged state governments and local authorities to re-evaluate their impositions and fees. The association believes that many of these levies do not add value to development projects but instead contribute to bureaucratic red tape and increased costs. This appeal underscores a broader concern about the cumulative financial burden placed on developers by various levels of government and quasi-governmental entities.

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Will Budget 2020 cut developers’ rising 5–10% cost pressures?

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