REIT Managers Pushing For Relaxation Of Rules
Let’s hope that our REIT managers have their following wishes come true when they push for changes in the government legislation in the forthcoming budget:
- A more liberated equity holding in REIT so as to allow foreign partners to set up REIT companies. Currently, there was a 49% restriction on foreign shareholders and minimum 30% bumiputra shareholding,
- Removal of withholding taxes for individual unitholders and reduce the withholding tax rate for non-resident institutional investors say from 20% to 10%
Some might asked why the needs for more changes in the REIT development. This might not be surprise to some, if we were to understand that our local REIT market has already entered into a two year development phase since August 2005.Since the launch of Malaysia’s first REIT in August 2005, there are now 11 REITs whose combined market capitalisation recently crossed RM5bil.
- However, the size of the local REITs market is still small compared with those in Japan, Singapore and Hong Kong. In fact, the share prices of local REITs are under-performing.
- Compared to Singapore, its REIT industry is said to be about 16 times larger than Malaysia.
- The Singapore government has already removed the 15% withholding tax for individual unitholders as well as reduce the withholding tax for non-resident institutional investors from 20% to 10%.
- On a regional basis, Singapore was a shining model to benchmark against, as it had done well in the last five to six years.
- In Singapore, great emphasis is on the recruitment on good REIT managers so as to perform and deliver results. Investors do not just buy into a REIT but the managers of the REIT
- Government To Consider Incentives, Tax review To Encourage REITs
- Relaxation Of Foreign Currency Rules
- TA To List REIT
- Singapore’s REIT And Its Liberal Tax Policies
- Comparison of No of REITS in Singapore and Malaysia.
- KPJ REIT- The World’s First Islamic REIT
- More Needs To Be Done for Malaysian REITs
July 27, 2007
Posted in: Activity-Based Costing
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