When tabling the Budget 2020, Lim had announced that the threshold for foreign property buyers will be decreased to RM600,000 from RM1 million from next year.

This was to address the glut of unsold condominiums and apartment units, worth some RM8.3 billion.

When asked if there was a possibility of housing developers taking advantage of the situation by engaging in speculation in order to increase prices, Lim said:

“I don’t think foreign buyers are that stupid to buy houses that don’t reflect the market value.”

He said if people were afraid of foreign buyers, it will not resolve the issue of a supply overhang.

“Locals can buy these properties if they want.”

Earlier, Prime Minister Dr Mahathir Mohamad gave an assurance that Malaysians will not be left out from purchasing such properties and foreigners will be barred from buying landed properties.

“There is a property overhang, but this is limited to flats, not landed properties. We need to sell off these properties.

“Of course, there will be foreign buyers but local buyers should not be left out just because foreign buyers are buying lower-priced flats.”