KUALA LUMPUR (Oct 12): The Malaysian REIT Managers Association (MRMA) has urged the government to give further consideration to its four key Budget 2027 proposals to bolster the long-term competitiveness and resilience of the Malaysian real estate investment trust (M-REIT) market.
According to a press statement issued on Oct 10, the association said these proposals remain highly relevant to support capital formation and sustainable growth within an increasingly competitive regional investment landscape.
Among the key proposals submitted is the reinstatement of the 10% withholding tax concession on REIT distributions, which expired on Dec 31, 2025, to maintain the sector's attractiveness to domestic individual and foreign investors.
MRMA also proposed continuing the nominal stamp duty of RM10 on tenancy novation agreements to lower administrative and transaction costs during property acquisitions and leasing arrangements.
In addition, the association sought a reconsideration regarding the application of service tax on utility reimbursements under rental and lease arrangements to minimise unintended compliance and cost burdens for businesses.
To improve operational efficiency and reduce costs, MRMA recommended classifying REITs under the definition of a property-based business under Section 2 of Act 242, which would allow M-REITs to manage their own properties and assets.
MRMA noted that following the expiry of the withholding tax concession, the Malaysian REIT industry continues to navigate an environment shaped by volatile financing costs, evolving investor expectations, growing compliance demands and intense global competition for capital.
"Despite these challenges, Malaysian REITs have continued to demonstrate resilience through disciplined capital management, diversified portfolios and active asset management," MRMA said.
The association added that it remains committed to engaging constructively with the government and the Securities Commission Malaysia to provide market insights and advocate measures that enhance capital market competitiveness.