A foreign investor purchased an investment property under FIRB approval but failed to comply with the condition to rent it out within 12 months. What penalty can FIRB impose?

Option A: A warning letter only

A warning letter is insufficient for material breaches of FIRB approval conditions. While FIRB may issue warnings for minor or technical breaches, failing to rent out an investment property within 12 months represents a fundamental violation of the approval's purpose. FIRB's enforcement framework requires more substantial action than warnings for such significant non-compliance that directly contradicts housing supply objectives.

Option B: A fine of up to $50,000

While FIRB can impose financial penalties, a $50,000 fine is not the primary enforcement mechanism for failing to rent out investment properties. The specific penalty amount is also incorrect under current FIRB enforcement guidelines. More importantly, monetary penalties alone don't address the underlying issue of vacant properties failing to contribute to housing supply, which is the core policy concern.

Option D: Suspension of future FIRB applications for 2 years

FIRB doesn't impose blanket suspensions of future applications for specific time periods as a standard penalty. While repeated or serious breaches may affect future application assessments, a two-year suspension is not a prescribed penalty under FIRB's enforcement framework. The focus is on addressing the immediate non-compliance through divestment rather than future application restrictions.