06/07/2026

BIZ & FINANCE MONDAY | JULY 6, 2026

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Ű BY JOHN GILBERT sunbiz@thesundaily.com

Malaysia a key pillar in KiN Hotel Group’s growth strategy

Malaysia or received in Malaysia from outside the country was subject to tax under the Income Tax Act, 1967. The only exception was the capital gains arising from the disposal of real estate in Malaysia which is subject to tax under the Real Property Gains Tax (RPGT) from 1976. With the introduction of Capital Gains Tax (CGT) on Jan 1 2024, albeit on a limited basis, taxpayers are now faced with two distinct concepts under the Income Tax Act – income and capital gains. Prior to this, capital gains were confined to real property and this was dealt with under separate legislation, namely the RPGT Act. The coexistence PETALING JAYA: KiN Hotel Group, a Singapore-based hospitality and lifestyle company, sees Malaysia as one of the most important markets in its long-term growth strategy. The group’s entry into Malaysia marks a significant milestone in its long-term Southeast Asian expan sion strategy, with Kuala Lumpur identified as its first strategic market outside Vietnam. Alongside Vietnam, Malaysia is a core pillar of KiN Hotel Group’s expansion plans, and the group targets more than 4,000 rooms across the country by 2029. “Beyond room count, our ambition is to create a strong case study for what modern hospitality can look like. We want to contribute to the conversation around how hotels are designed, operated and invested in,” KiN Hotel Group co founder and group chief business officer Benny Ong told SunBiz. “Not just from a design pers pective, but by rethinking what actually constitutes a high-quality hotel experience today.” KiN Hotel Group began building its hospitality presence in Vietnam in 2023 and has since grown into a next-generation hospitality platform with a portfolio of more than 14 properties, including KiN Hotel Onsen, KiN Hotel Central Park and KiN Hotel Edition Thi Sach. Early this year, KiN Hotel Group announced its venture into Malaysia with its first five-star property – Maya Hotel on Jalan Ampang, Kuala Lumpur, after securing a long-term lease agreement to renovate and manage the existing hotel. KiN Hotel Group’s agreement with the owner of Maya Hotel, Selangor Dredging Bhd, grants it a 10-year lease with a five-plus-five year renewal option. The Maya Hotel renovation is estimated to cost more than US$5 million (RM19.8 million) and will be carried out in phases to minimise disruption to guests. The 22-storey property currently houses 284 rooms, though Ong notes that some may be converted to expand the hotel’s amenities. “Rather than defaulting to demolition and rebuilding, we believe many properties already contain strong architectural foun dations, unique stories, and valuable spatial characteristics. The oppor

o Singapore-based hospitality and lifestyle company looks beyond design and room count, seeks to redefine guest experience

of capital assets, subject to certain condition, remitted into Malaysia will be exempt from tax. This exemption is only available to a company, limited liability partnership (LLP), trust body and cooperative society. Individuals are also exempt from tax on remittance of such capital gains on the grounds that CGT is not Company, LLP, trust body and cooperative society: Any disposals of “real property” in Malaysia will be subject to RPGT. Real property in simple terms relates to landed property. Disposal of shares in public listed company, mutual funds, bonds, etc will not attract CGT. However, disposal of shares in private unlisted companies will attract CGT. The issue of “real property company” shares is not applicable since RPGT does not come into play applicable to them. How does it work? spaces and food and beverage experiences. We want to create vibrant spaces that people actively choose to visit, supported by strong local partners and concepts that add to the overall experience,” Ong said. Finally, KiN Hotel Group will upgrade the rooms in line with the Essential Luxury Philosophy – better sleep, thoughtful lighting, persona lised comfort and the details that genuinely improve a guest’s stay. “Ultimately, every investment decision comes back to one question – does it meaningfully improve the guest experience? If it does, that is where we invest,” Ong noted. Elaborating, he said Hotel Maya represents an important milestone for KiN Hotel Group. “Across our portfolio, we operate more than 30 boutique hotels, primarily in Vietnam, but this marks our first entry into Kuala Lumpur and our first five-star property. “That said, the DNA of KiN Hotel Group has never been defined by star ratings. “We have never believed that luxury is simply a function of room size or the number of facilities a hotel offers. What matters is how a hotel makes people feel.” Ong stressed that from thoughtful design and facilities that matter to spaces that encourage creativity, connection and wellness, those principles remain consistent across every KiN Hotel Group property. “Travel should be exciting, but it should never feel isolating. When guests arrive in a new city, we want them to experience the adventure of

has understandably created confusion, particularly for taxpayers who are not familiar with the intricacies of Malaysian tax legislation. Added to this potpourri of legislation is the inter action between the capital gains regime and the implications of the foreign sourced income received in Malayia which came into the picture from 2022. The irony here is capital gains arising to taxpayers outside Malaysia from the sale of real estate or other property, can be subject to tax in Malaysia from Jan 1 2024 because it falls within the definition of “capital asset”. Unless you are a tax-savvy person and you have taken pains to under stand that there is an exemption order, an ordinary taxpayer may not be aware that the gains from disposal tunity is to unlock that potential intelligently while avoiding the traditional four- or five-star hotel playbook that may no longer reflect what modern travellers actually value,” he said. “We believe this approach is often more sustainable, more capital efficient, and ultimately creates more distinctive hospitality ex periences. “Ultimately, the impact we want to have is helping investors, developers, and landlords invest more intelligently – creating hotels that command strong performance because guests genuinely want to stay there, not because they are the cheapest option in the market,” Ong said. Elaborating on plans for Hotel Maya, Ong said KiN Hotel Group’s first priority is bringing the pro perty’s core infrastructure back to modern five-star standards. He said the hotel’s water systems, heating, guest comfort and all the essential foundations must perform flawlessly. “From there, our biggest investment will be in the facilities beyond the room itself. We believe this is increasingly what differ entiates a hotel today. “We will be significantly ex panding the wellness and fitness offering, growing it to roughly three times its current footprint. This includes upgraded fitness facilities, hot- and cold-therapy experiences, recovery-focused wellness spaces, and services designed to help guests recharge and reset. “The next focus is on communal

Ong says KiN Hotel wants to create vibrant spaces that people choose to visit.

recharge, reflect, and create memories. “Our goal is to ensure that wherever guests travel, they feel connected to the city, connected to the people around them, and. most importantly, at home,” Ong said.

discovering somewhere new while still feeling welcomed, comfortable, and at ease. “A hotel plays a significant role in any journey. It is where people begin and end their days, where they

CGT or RPGT – which one applies to your capital gain? UNTIL Jan 1 2024, taxpayers were very clear that only income that is accrued in or derived from of these two regimes

understand the distinction between RPGT and CGT, as well as the interaction between the CGT regime and the foreign-sourced income rules. Taxpayers who derive capital gains, particularly from the disposal of assets outside Malaysia and intend to remit the proceeds to Malaysia, should familiarise themselves with these guidelines to better under stand their tax obligations and the available exemptions. The key guidance issued by the IRB includes: (i) Tax Treatment on Gains from the Disposal of Foreign Capital Assets Received from Outside Malaysia; (ii) Capital Gains Tax for Unlisted Shares; and (iii) the Real Property Gains Tax Guidelines. This article is contributed by Thannees Tax Consulting Services Sdn Bhd managing director SM Thanneermalai (www.thannees.com).

here. Disposal of shares in foreign company which holds real properties in Malaysia may attract CGT, subject to certain conditions. Individuals: Individuals will still be subject to RPGT on any disposals of “real property” in Malaysia which include “real property company” shares. However, disposal of real estate overseas and remittance of such capital gains will not be subject to tax in Malaysia. The CGT regime introduced in 2024 is not applicable to individuals. In the event you have made any form of capital gain either from sale of shares or sale of any other capital asset. and remitted back to Malaysia will not be subject to tax since it is a

capital gain. Suggestion

Malaysia’s Inland Revenue Board (IRB) has issued excellent, compre hensive guidance to help taxpayers