The Real Estate and Housing Developers’ Association (REHDA) called upon financial institutions to take heed of the government’s move to introduce housing projects for the people and introduce their step-up financing schemes.
Its president Datuk Ho Hon Sang said that such a scheme would allow more Malaysians access to innovative programme and would go a long way to ensure adequate housing for the B40 income group.
Prime Minister Datuk Seri Anwar Ibrahim announced in Budget 2025 that the RM900 million allocation for 48 Program Residensi Rakyat projects and 14 Rumah Mesra Rakyat projects.
Ho said that tax exemptions on loan interests of up to RM7,000 for homes prices RM500,000 and below, and up to RM5,000 for houses within the RM500,001-RM750,000 price range would greatly assist first-time house buyers.
Other initiatives would also include the introduction of the Youth House Financing Scheme by the Public Sector Home Financing Board (LPPSA), the proposals introduced under the Housing Credit Guarantee Scheme (SJKP) for purchases priced up to RM500,000 built on wakaf land.
In addition, the introduction of the Step-Up Financing Scheme of up to RM5 billion targeted for youths, which offers a lower repayment rate for the first five years, also under SJKP would assist them well.
“The continued allocation of RM10 billion for 20,000 people through SJKP would further benefit potential home buyers without monthly income statement,” he said.
Ho also mentioned that these efforts speak volumes of the government’s intentions to ensure home ownership for all rakyat and to financially assist youths who are just starting their career to purchase homes.
According to Ho, the step-up financing scheme is an initiative that REHDA has been asking for in various budget engagements over the years.
“We call upon financial institutions to also take heed of this move and introduce their own step-up financing schemes, thus allowing more Malaysians access to this innovative programme,” he explained.
On another matter, he said that as an industry that has frequent engagements with the federal and state governments, REHDA looks forward to performing submissions and set appointments online as it would contribute to reducing the cost of doing business.
Meanwhile, Mah Sing Group believes that the introduction of tax relief on housing loan interest for first-time home buyers would positively benefit Malaysians aspiring to own their first homes.
The tax relief couls be claimed for three consecutive assessment years for sale and purchase agreement finalised between 1 January 2025 and 31 December 2027.
“We support these initiatives by offering a wide range of affordably priced properties that cater to the needs of first-time homebuyers and the middle-income segment,” Mah Sing said in a statement.
Additionally, the incoming RM50 million allocation to upgrade the drainage system shows the government’s seriousness in mitigating floods, hence protecting residents and businesses alike.
“Given the current unpredictable weather patterns, the allocation is timely for business continuity and protecting the country’s economic wellbeing,” said Mah Sing group managing director Tan Sri Leong Hoy Kum.
Apart from that, the government’s effort to support the use of energy-efficient equipment with the allocation of e-rebate worth RM70 million would undoubtedly allow its business operations to transition to greener and more efficient equipment in the near future.
Leong added that as carbon emissions abatement becomes more critical, the government’s initiative to introduce the Carbon Tax beginning with the high-intensive industries is very timely.
“This ‘stick’ approach will provide industries with the motivation to further explore usage of low-carbon technology across their business.
“Additionally, a domino effect can be achieved throughout the supply chain progressively, further supporting the nation’s ambition to achieve its carbon net zero ambition by 2050,” he said.
