Malaysia Allocates RM24.7 Billion for Housing in Budget 2024

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Prime Minister Anwar Ibrahim reveals budget allocation, including a guarantee fund for reviving abandoned projects and measures to control property prices, in Malaysia MADANI Budget 2024.

KUALA LUMPUR, 13th Oct 2023 – Prime Minister Datuk Seri Anwar Ibrahim, who also serves as the Finance Minister, announced that the government has earmarked RM24.7 billion to advance the people’s housing project (PPR) in the upcoming year. This allocation encompasses a special RM1 billion guarantee fund intended to incentivize responsible developers to revive abandoned projects that have been identified.

As of August this year, significant progress has been made, with around 256 ailing projects, encompassing over 28,000 housing units and boasting a gross development value of RM23.37 billion, being successfully revitalized.

Anwar further disclosed that RM546 million will be channeled to continue 36 PPRs, including the initiation of a new project in Kluang, Johor. He expressed optimism, stating that an estimated 5,100 potential new residents across 15 PPRs are expected to move into their completed homes next year.

Additionally, 14 Rumah Mesra Rakyat projects are currently in progress, aiming to construct 3,500 housing units with an allocation of RM358 million. Another RM460 million has been set aside to provide assistance to approximately 65,000 underprivileged families in rural areas, either for the construction of new houses or the repair of dilapidated dwellings.

The government is allocating RM100 million for the maintenance of low- and medium-cost stratified public and private housing across the nation. This fund will cover essential repairs such as water tanks, roofs, cable systems, and the installation of closed-circuit television (CCTV) cameras.

Anwar confirmed that the Housing Credit Guarantee Scheme would receive an increased budget of RM10 billion, benefiting 40,000 borrowers.

To facilitate the redevelopment of the strata system, the threshold for residents’ consent to block sales will be standardized and lowered from 100 percent, following international models such as those in Singapore.

Under the Unity Government’s auspices, the administration has taken control of the Bandar Malaysia development, ensuring that strategically significant land is optimally utilized for people’s projects based on MADANI values.

Anwar additionally detailed a budget allocation of RM100 million to support Chinese new villages in providing fundamental infrastructure and social amenities.

In efforts to regulate property prices, the Prime Minister disclosed plans for a four percent flat stamp duty on property transfers by non-citizens and foreign-owned companies, with exceptions for permanent Malaysian residents.

In another move, the government is proposing a change regarding the instrument transfer of property ownership, where beneficiaries relinquishing their rights to entitled beneficiaries under a will or faraid (the Islamic law of inheritance) or the Distribution Act 1958 will only be subjected to a fixed stamp duty of RM10, instead of the previous ad-valorem stamp duty rate.

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