Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim has unveiled the Malaysian Budget 2025, highlighting significant measures to boost housing and development. Key initiatives focus on making homeownership more affordable and improving community living standards.

First-Time Home Buyers Support

The Housing Credit Guarantee Scheme (SJKP) will now provide guarantees on loans up to RM500,000 for first-time home buyers purchasing properties on wakaf land. So far, the scheme has approved RM12.8 billion in loans, benefiting more than 57,000 first-time buyers.

Housing Tax Relief

To encourage homeownership, first-time buyers of homes priced up to RM500,000 can claim tax relief of up to RM7,000. For homes priced between RM500,000 and RM750,000, buyers can claim up to RM5,000 in tax relief. These benefits can be claimed for three consecutive years for sale and purchase agreements signed between January 1, 2025, and December 31, 2027.

Affordable Housing Initiatives

A budget of RM900 million has been allocated for 48 People’s Residency Programs (PRR) and 14 Rumah Mesra Rakyat (RMR) projects, including new PRR developments in Port Dickson and Seberang Perai Tengah. By the end of 2025, 30 PRR projects will be completed, providing homes for nearly 17,500 people.

Additionally, up to RM90,000 in financial aid will be available for building new homes for residents, including those in the hardcore poor housing programme (PPRT), fishermen, and Chinese new villages. The government has also raised the maximum financial assistance for home repairs to RM20,000. UDA Holdings Bhd will receive RM200 million to develop affordable housing on wakaf land, and the Public Sector Home Financing Board (LPPSA) will assist civil servants in buying homes on such land.

Maintenance and Facilities Upgrades

RM200 million has been set aside for maintaining low- and medium-cost public strata housing, with funds going toward replacing old elevators. Another RM100 million will be used to upgrade 48 Madani Public Parks, enhancing recreational areas across the country.

To further improve communities, RM84 million will be allocated to upgrade basic infrastructure and social facilities in Chinese New Villages, while the Housing and Local Government Ministry will focus on meeting the needs of Indian settlements.

These comprehensive initiatives aim to ease the path to homeownership and improve living conditions for Malaysians across various communities.

From the Desk of Miichael Yeoh