KUALA LUMPUR, Oct 10 — The government plans to allocate RM672 million under Budget 2026 to continue building affordable homes for Malaysians, Prime Minister Datuk Seri Anwar Ibrahim announced when tabling the federal spending plan in the Dewan Rakyat today.
He said the allocation will fund the construction of homes under the Residensi Rakyat and Rumah Mesra Rakyat programmes, with several projects expected to be completed next year.
“Several projects will be completed next year to benefit 33,000 residents, including Ayer Lanas PRR in Jeli, Kelantan, and Masai PRR in Johor,” he said.
Anwar also said that 80,000 first-time homebuyers will benefit from increased government loan guarantees under housing credit guarantee scheme, which will rise to RM20 billion from RM10 billion, helping more gig workers and the self-employed.
For first-time homebuyers, Anwar said the government proposes to extend full stamp duty exemptions on transfer instruments and loan agreements for homes priced up to RM500,000 until December 31, 2027.
To maintain a competitive housing market and curb property price hikes, the government plans to impose a flat stamp duty rate of 4 to 8 per cent on the transfer of residential property ownership by non-citizens and foreign companies, excluding permanent residents in Malaysia.
Anwar added that In line with the 13th Malaysia Plan, financial institutions will be encouraged to support rent-to-own and build-then-sell housing schemes.
The government also proposes a special tax deduction equal to 10 per cent of eligible expenses — capped at RM10 million — for the renovation and conversion of commercial buildings into residential premises.
He added that over 3,300 dilapidated homes, including 380 fishermen’s houses, will be repaired or rebuilt with an allocation of RM500 million.
Public housing (PPR) facilities will be upgraded for better liveability with RM143 million is set aside for maintenance of low- and medium-cost strata homes, including replacing old lifts.
Anwar said nearly RM90 million will be used to improve basic infrastructure in Chinese New Villages and Indian villages.
“RM95 million is allocated to repair and upgrade public toilets and parks across all local authorities.
“Socioeconomic support for PPR communities will be enhanced through Fire and water safety awareness programmes under ‘Bomba Bersama Rakyat’ and Community sports activities, including swimming lessons, martial arts, and recreational classes for senior citizens,” he said
