The government is confident of achieving its target of delivering 500,000 affordable housing units (RMM) by the end of 2025, according to Housing and Local Government Minister Nga Kor Ming. As of 31 December 2024, 466,421 units—93.3% of the target—have been completed, are under construction, or are in the planning stages nationwide.

Nga addressed concerns in the Dewan Rakyat regarding rising house prices and their impact on young first-time buyers, highlighting Malaysia’s homeownership rate of 76.5% as of 2022. Affordable housing initiatives at the federal level include the People’s Housing Programme (PPR), People’s Residency Programme (PRR), Rumah Mesra Rakyat (RMR), PR1MA Housing Programme, and Syarikat Perumahan Negara Berhad (SPNB) Residences. State governments also offer tailored housing programmes to meet local needs.

Budget 2025 has allocated nearly RM900 million to expand PRR and RMR projects, including 5,410 new RMR units. To ease financing, the government has enhanced the Housing Credit Guarantee Scheme (SJKP), offering loan guarantees of up to RM500,000 for first-time buyers. An additional RM10 billion in guarantees under Budget 2025 brings the total financing under SJKP to RM30 billion, benefiting 76,664 borrowers with approved loans worth RM17.86 billion since 2008.

First-time buyers can also claim up to RM7,000 in mortgage interest tax relief for three years. Additionally, the Rent-to-Own (RTO) scheme allows low-income earners (B40) and young professionals to rent PPR units with the option to purchase later.

Nga emphasised the government’s commitment to ensuring affordability and quality through initiatives like the Malaysia Urban Observatory (MUO) dashboard, which maps housing prices based on median income levels. The Affordable Housing Standard aligns with the National Housing Standard (CIS 26:2019), ensuring consistent pricing and quality across developments.

With these measures, the government aims to make homeownership more accessible while maintaining high standards for affordable housing.