Budget 2024: Housing & Development Insights

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Get the scoop on Malaysia’s Budget 2024, focusing on housing, development, and sustainable initiatives. What’s in store for the nation’s future?

KUALA LUMPUR, 16th Oct 2023 – The recently unveiled Budget 2024, themed “Madani Economy: Empowering the People,” demonstrates the government’s commitment to Malaysia’s development and economic growth. With a total allocation of RM393.8 billion, a slight increase from the previous budget of RM388.1 billion, this budget sets the stage for a promising future.

Key Highlights:

Addressing Late and Abandoned Projects:

This year, the government established a special task force under the Local Government Development Ministry (KPKT) to tackle the issue of delayed and abandoned private housing projects. 

By August, they had successfully restored 256 such projects, encompassing 28,000 housing units and a gross development value of RM23.37 billion. Furthermore, a “special guarantee fund” of RM1 billion has been earmarked to encourage reputable developers to revive selected abandoned projects.

Enhancing Public Housing:

In 2024, RM2.47 billion is allocated for public housing projects (PPRs), with RM546 million dedicated to sustaining 36 PPRs, including a new project in Kluang, Johor. The year ahead aims to see the completion of 15 more PPRs, benefiting 5,100 residents. 

Additionally, RM385 million is set aside for the construction of 14 affordable housing projects, involving 3,500 housing units. RM460 million will assist 65,000 underprivileged individuals in building new homes or renovating existing ones in rural areas.

Stamp Duty Reforms:

To control property prices, a fixed stamp duty fee of RM10 will replace the previous variable rate for real estate transfer documents in 2024, particularly for cases involving beneficiaries relinquishing their rights to eligible beneficiaries as per a will, Faraid, or the Distribution Act 1958. 

In a move to regulate foreign property purchases, the government intends to impose a 4% flat-rate stamp duty on memorandum of transfers for foreign individuals and companies, with exceptions for permanent residents.

Supporting Housing Credit:

The Housing Credit Guarantee Scheme, which received RM5 billion in 2023, is set to expand in 2024 with an allocation of RM10 billion, benefiting up to 40,000 borrowers. This will particularly assist those with no fixed income from gig economy jobs.

Urban Renewal Through En-Bloc Sales:

To promote urban renewal and encourage the redevelopment of older buildings in cities, the threshold for residents’ approval in en-bloc sales will be reduced to a level consistent with international practices, as seen in Singapore.

Sustainable Initiatives:

Malaysia is taking steps to promote sustainability, with allocations for solar panels on government buildings, electric vehicles, and an extended Net Energy Metering (NEM) program. 

Efforts are underway to buy back solar energy from rooftop installations at minimal costs to the system. Incentives will be offered to industries transitioning to a low-carbon economy.

Electric Vehicle Initiatives:

To encourage the adoption of electric motorcycles among individuals with annual incomes of RM120,000 or lower, rebates of up to RM2,400 will be available through the Electric Motorcycle Use Promotion Scheme. 

Tax rebates for EV vehicle rentals have been extended for two more years, and those investing in EV charging ports can benefit from income tax exemptions of up to RM2,500 for four years. 

Furthermore, Prasarana Malaysia Bhd plans to introduce 150 electric buses and construct three new bus depots with a budget of RM600 million, a significant step towards sustainable public transportation.

Tourism and Economic Boost:

As Malaysia gears up for Visit Malaysia Year in 2026, with expectations of welcoming 26.1 million foreign tourists, RM350 million is allocated to boost tourism activities in the country. 

A portion of this budget will be used to maintain Unesco heritage sites and foster tourism growth.

In Summary:

Budget 2024 reflects the government’s commitment to improving the lives of everyday Malaysians. By addressing housing, development, and sustainability, this budget aims to enhance the quality of life for all citizens. 

It recognizes the importance of maintaining homes and the surrounding infrastructure in creating a prosperous and harmonious society.

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