MCA Youth – Budget 2017 should give more exemptions to M40 group

The MCA Youth Young Professionals and Varsity Students' Affairs Bureau would like to express our views on the upcoming 2017 Budget which will be tabled in the Parliament tomorrow.

As vast majority of young professionals and fresh graduates fall within the middle income group (the M40 group), which also forms the biggest chunk of the country's workforce, it is the Bureau's hope that the government will tackle and address the woes and challenges faced by this group.

First of all, the Bureau is of the view that the income tax rates and incentives on the M40 group should be revised.

It is the Bureau's firm belief that those with the widest shoulders should carry more burden, and thus income tax rates for the M40 group should be reduced where the differences should be offset by increasing income taxes on the country's richest 20% group. At the same time, a higher tax exemption for the M40 group should be given in the 2017 Budget.

Reintroduce DIBS for first time homebuyers

In addition to the income tax issues, the M40 group is often troubled by the need to purchase first home. Amongst the problems this group faces is the difficulties in obtaining loan, securing sufficient downpayment and initial funds to foot the high legal fees and stamp duties on both sale and purchase agreement and loan facilities. As such, the Bureau share the views of many stakeholders in the property industry to reintroduce the Developer Interest Bearing Scheme (DIBS) for first time homebuyer in the M40 group, with a higher margin of loan and a higher allowance of withdrawal from the EPF2 account, as well as a waiver or a higher exemption of the stamp duties payable.

The Bureau is of the view that should these measures be implemented in Budget 2017, it will help to drive up the productivity of this group which will in turn benefit the country's economy and development in the long run.

In view of this, the Bureau hopes that the government will seriously consider these proposals and implement measures which will benefit the M40 group tremendously, especially the young professionals and the fresh graduates who have just joined the workforce.

Choo Wei Sern (Eric)
MCA Youth Young Professionals and Varsity Students' Affairs Bureau Chairman

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