SST Expansion Will Have Minimal Impact on House Prices, Says Works Minister
- Marcus Liew
- Jul 2
- 2 min read
The upcoming Sales and Service Tax (SST) expansion, effective July 1, will have a limited impact on house prices, according to Works Minister Datuk Seri Alexander Nanta Linggi.
Speaking at the 27th International Surveyors Congress held at the Sime Darby Convention Centre, the Minister assured that the government has taken measured steps to avoid price shocks in the housing sector.
“Despite concerns over rising costs, the SST expansion will have a limited impact on price growth. Our transitional measures are designed to preserve momentum while ensuring a fairer and more sustainable tax system,” said Nanta.
Housing Projects and Essential Materials Exempted
To curb potential increases in construction costs and housing prices:
Public and residential housing projects are exempt from SST.
Basic construction materials remain at 0% SST, helping developers manage costs on essential supplies.
“We want to ensure essential supplies remain affordable,” he added.
Transitional Measures to Support Contractors
The government has also introduced transitional reliefs to support industry players:
12-month tax exemption for non-renewable contracts, giving contractors time to adjust project scopes and pricing.
Double taxation will be avoided through specified transaction exemptions.
These moves aim to reduce disruptions in ongoing construction and infrastructure projects.
Modernising Infrastructure: Surveyors Play a Critical Role
Beyond tax reform, the Minister stressed the vital role of surveyors in modernising Malaysia’s ageing infrastructure.
“We need good surveyors—land surveyors, quantity surveyors, material surveyors—especially now that the government is focusing on upgrading infrastructure across the country,” he said.
He revealed that the Public Works Department (JKR) estimates RM4 billion is needed to restore the national road network to international standards.
Currently, annual funding for road maintenance stands at just RM1 billion.
“Even with limited funds, we must ensure that the quality of the work is top-notch to avoid repeat repairs,” he emphasized.
Keeping Young Surveyors in Malaysia
A key theme of the congress was retaining young talent in the surveying profession. Nanta urged the industry to:
Improve compensation
Encourage flexible work cultures
Support entrepreneurial efforts
“To keep our young talents at home, we must create an ecosystem that values their contributions,” he said.
27th International Surveyors Congress: A Global Gathering
The two-day event, themed “Innovate To Elevate: Surveyors Reinventing the Profession and Industry”, was organised by the Royal Institution of Surveyors Malaysia (RISM).
Highlights:
450+ professionals attended from Malaysia, Hong Kong, Singapore, and beyond.
Sessions covered:
Geomatics & land surveying
Quantity surveying
Property and building surveying
Sustainability & digital transformation
The congress served as a platform for the industry to explore how technology, sustainable practices, and cross-border collaboration are reshaping the future of surveying.
Final Thoughts
Malaysia’s SST expansion has been carefully crafted to protect homebuyers and contractors, while also encouraging the industry to adapt and modernise.
From financial relief for developers to calls for stronger talent retention, the government is striking a balance between economic reform and infrastructure resilience.
With increasing focus on quality, sustainability, and innovation, the surveying profession is now more important than ever in shaping Malaysia’s built environment.