Do Malaysian PRs who own a resale HDB need to pay a resale levy when buying a BTO?

When two Malaysian Permanent Residents (PRs) who own a resale HDB flat decide to purchase a BTO (Built-To-Order) flat, they are subject to certain conditions. Since they are not Singapore citizens, they cannot purchase a BTO flat directly without meeting specific criteria, such as applying under the Public Scheme or Fiancé/Fiancée Scheme with a Singapore citizen.

However, if we consider the scenario where they are selling their resale HDB flat to purchase a BTO flat (which would typically require one of the buyers to be a Singapore citizen), the resale levy does apply in certain cases.

For PRs selling their resale HDB flat to buy another HDB flat, the resale levy is generally applicable if they are receiving a subsidy for the first time. Since PRs do not qualify for subsidized BTO flats, the resale levy would typically not apply in the context of them buying a BTO flat, as they would not be receiving a subsidy for the BTO flat.

In summary, if two Malaysian PRs are selling their resale HDB flat and one of them is applying for a BTO flat with a Singapore citizen, they would not need to pay the resale levy because they are not receiving a subsidy for the BTO flat. However, this scenario assumes that one of the buyers must be a Singapore citizen to qualify for the BTO flat.