Received the below information from my lawyer and it is correct at time of publishing:
The new stamp duty rebate for first time buyers of residential properties in Malaysia has taken effect since January 1, 2017.
This is for residential properties up to RM 500,000 only.
The stamp duty for the first RM 300,000 of the purchase price is 100% rebated.
Any balance of the purchase price of the RM 500,000 purchase price will be calculated at the current stamp duty rate which is 2%
If the purchase price of a RESIDENTIAL property is RM 500,000 exactly AND the buyer is a FIRST TIME buyer, the stamp duty is calculated as follows:
First RM 300,000 = RM 0 (100% rebated)
Balance which is RM 500,000 minus RM 300,000 is RM 200,000
The stamp duty for this RM 200,000 will be at 2% = RM 4,000
So the buyer only pays RM 4,000 instead of the standard RM 9,000.