Malaysia’s southern state of Johor, which neighbours Singapore, will implement a higher handling fee on foreigners who buy houses, as it looks to boost revenues and restrict speculative buying, state news agency Bernama has reported.

Bernama’s’ report quotes the state executive councillor for housing and local government, Abdul Latiff Bandi, as having said that the state government will charge a fee of 4 to 5 per cent of the property value. Proceeds will go towards welfare projects in Johor, the report said.

Bernama said that this compares with the current flat fee of 10,000 ringgit ($3,100) per property.