Today, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim presented the Malaysian Budget 2025, with significant provisions for housing and development. Below are the key takeaways:

Support for First-Time Home Buyers

• The government’s Housing Credit Guarantee Scheme (SJKP) will now guarantee loans of up to RM500,000 for first-time home buyers purchasing homes on wakaf land.
• The SJKP has approved RM12.8 billion in government guarantees, benefiting over 57,000 first-time home buyers.

Housing Tax Relief

• A tax relief of up to RM7,000 is available for the purchase of residential properties priced up to RM500,000, aimed at encouraging first-time homeownership.
• For properties priced between RM500,000 and RM750,000, a tax relief of up to RM5,000 is offered.
• These reliefs can be claimed for three consecutive assessment years for sale and purchase agreements completed between January 1, 2025, and December 31, 2027.

Affordable Housing Initiatives

• The government has allocated RM900 million to implement 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 are expected to be completed, benefiting nearly 17,500 new residents.
• A maximum of RM90,000 in financial aid will be provided for the construction of new homes, including for residents of the hardcore poor housing programme (PPRT), fishermen, and Chinese new villages.
• The maximum allocation for people’s homes repair assistance has been increased to RM20,000.
• UDA Holdings Bhd (UDA) will receive RM200 million to develop affordable housing on wakaf land, while the Public Sector Home Financing Board (LPPSA) will support civil servants purchasing homes on such land.

Housing and Facilities Maintenance

• RM200 million has been earmarked for the maintenance of low- and medium-cost public strata homes, including replacing old elevators.
• RM100 million will be used to upgrade 48 Madani Public Parks, enhancing recreational spaces across cities and towns.
• RM84 million has been allocated to upgrade basic and social facilities in Chinese New Villages.
• The Housing and Local Government Ministry will coordinate efforts to address the needs of Indian settlements.