Penang Chief Minister Lim Guan Eng today proposed to increase the minimum price for purchases of properties by foreigners from the existing RM500,000 to RM1 million.

asian democracy and economic development forum penang 090212 lim guan eng Lim ( left ) said a higher limit of RM2 million will be imposed for landed properties in Penang Island, while retaining the present RM500,000 minimum price for permanent residents.

He added this was “the first step to protect the interests of Malaysians”.

Lim noted that there were 774 and 890 property transactions by foreigners in 2010 and 2011 respectively.

These constituted 2.98 percent and 2.26 percent, respectively of the total number of property transactions in Penang.

“However, to protect the interests of locals and ensure that they enjoy priority for less expensive properties, this restriction will help provide a level playing field, since foreigners have the advantage of a higher currency,” Lim said.

“The Penang government stresses that we welcome foreign participation in our economy, including our property market,” added Lim, who is also DAP secretary-general.

Need for feedback from stakeholders

Foreign participation in the economy can be profitable to both Penangites and foreigners alike in the higher-end market, where they can add value by helping the state transform into an international and intelligent city.

“We would like to get feedback and opinions from NGOs, property developers, foreigners and the people on this proposal.

“The state government hopes to implement this proposal the earliest by June or the latest by July 1, this year,” he added.

Lim announced this in his welcoming speech at the screening of the documentary Urbanized by Gary Hustwit, brought by the Penang Institute in conjunction with Think City.

He said Penangites can learn from the film how other cities around the world are addressing their urban challenges.

The film perhaps can also provide the lens for us to approach some of the issues that we face here in Penang, he added.

A panel of professionals made up of planners, politicians, academicians and urbanites will share their views at a forum after the film screening.

“Discussions on this issue are timely, and even more critical because it involves a broad range of stakeholders, like what we have here today, from NGOs to members of local authorities to professional architects, planners and developers,” Lim added.