KUALA LUMPUR: UEM Sunrise Bhd is exploring the impact of sales and service tax (SST) exemption on building materials and construction services, to see whether the property developer can reduce its property prices.
Managing director and chief executive officer Anwar Syahrin Abdul Ajib said besides SST on building materials and construction services, there are still many other costs that property developers have to incur including development charges, land costs and increased premium costs.
"All of these costs contribute to the selling price. If we can get savings from SST, we would certainly like to channel it to consumers, but we have to look at (overall) costs.
"For example, development charges can rise by up to 25 per cent and this will lead to an increase in house prices," he said at the launch of UEM Sunrise’s collaboration with Grab Malaysia here.
Also present were Grab Malaysia country head Sean Goh and GrabPay Malaysia, Singapore and Philippines managing director Ooi Huey Tyng.
Recently, the government had warned that it will withdraw the six-per cent SST exemption on construction services and building materials if property developers do not reduce house prices.
Meanwhile, UEM Sunrise has established a strategic partnership with Grab Malaysia to expand the use of cashless transaction for transport, food and shopping in Publika, Mont Kiara and Iskandar Puteri, Johor.
Under the collaboration, Grab Malaysia will offer its full service to the community in the area through GrabFood and GrabPay to further benefit retailers and transform shopping and dining experiences for customers.
Anwar said UEM Sunrise is committed to playing a role as a property developer to ensure that its township development would meet the needs of tenants, customers and communities who choose their project as their home or business premises.
"We need to start this step by creating an ecosystem through digital initiatives to provide added value to the people, residents, visitors and communities in the area," he said.
"We are excited to be the first real estate company to work with Grab where their services will be expanded in Iskandar Puteri in the future, especially in shopping malls and commercial," he said.