PUTRAJAYA, Sept 4 — As preparations for the upcoming Budget 2026 to be unveiled in October are underway, the government will also examine support mechanisms to strengthen housing reform, with a particular focus on expanding access to affordable housing, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said the government is committed to ensuring that more Malaysians, especially those in the lower and middle-income groups, can own homes that are within their financial means.
Amir Hamzah said that reforms under the 13th Malaysia Plan (13MP) are also designed to address housing challenges, including the development of new models such as rent-to-own schemes and a gradual shift towards a build-then-sell approach to reduce the risk of abandoned projects.
“Affordable housing will continue to be a priority for Malaysia going forward, and we are looking at new mechanisms to ensure more people can own and afford homes,” he told reporters after launching the Property Information System Malaysia (PRISM) 2.0 here today.
Commenting on the increase in the overhang of residential units since the first quarter of this year, Amir Hamzah said the overall property market remains stable, but reforms are needed to address structural issues.
“The key for us is that the overall market is still stable. What is important is to support the segment that needs it most, especially affordable housing,” he said.
Amir Hamzah noted that housing affordability is closely linked with income levels, stressing that the government has been implementing wide-ranging labour market reforms to strengthen household purchasing power.
“We have seen initiatives such as minimum wage increases, the push for progressive wages, and encouragement for companies to adopt living wages. These are aimed at improving affordability by raising income levels,” he said.
To complement these measures, Amir Hamzah highlighted the Housing Credit Guarantee Scheme (SJKP), which allowed those without a fixed income to secure housing loans through government guarantees.
He said these are creative solutions to help people get onto the property ladder.
“But the most important area remains fixing the basis of affordability in the country, which includes strengthening income levels,” he said.
Amir Hamzah added that under the 13th Malaysia Plan (13MP), the government is targeting an increase in labour’s share of the economy from 33 per cent to 40 per cent.
He also stressed that the expansion of the service tax (SST) would not affect the residential housing sector.
“Construction and supply of materials for residential projects are exempt from SST. The intention is to safeguard rakyat affordability, while the commercial sector bears part of the tax,” he said.
In another development, Amir Hamzah reaffirmed that the RON95 fuel subsidy rationalisation plan remained on track for implementation before the end of 2025, utilising the national identification card (IC) system to ensure the subsidies benefit those most in need.
“We have said before, the RON95 subsidy plan will be implemented before the end of this year. It will use the IC and the proper system so that the majority of the people will receive the subsidy,” he added — Bernama
