KUALA LUMPUR: The government’s new proposal, Madani Deposit Initiative (MDI), aimed at providing help for young people to own homes, is welcomed by PropertyGuru, which sees it as a pivotal step in addressing housing affordability for young Malaysians.

PropertyGuru country manager Kenneth Soh said its recent study revealed that 50% of respondents desire greater government support in the form of affordable housing schemes, subsidies and policies to ease the financial burden of homeownership.

“A key part of this support is the proposed MDI by the Ministry of Housing and Local Government, which seeks to lower the upfront deposit costs for first-time buyers. This measure is expected to make homeownership more accessible, particularly for younger Malaysians striving for financial stability,” he said at PropertyGuru Malaysia Property Pulse Check today.

Soh said the initiative also opens opportunities for more Malaysians to consider purchasing homes in emerging areas where property prices are lower but still offer good connectivity and amenities, further supporting the government’s push for a more inclusive housing market.

In addition, he noted, MDI which is part of Malaysia’s broader Madani Economic Framework, is focused on direct financial assistance.

Recently, Housing and Local Government Minister Nga Kor Ming disclosed that the maximum Madani Deposit for each house is RM30,000 for a unit priced up to RM500,000.

Soh lauded the initiative as a “straightforward, well-targeted contribution”, noting its potential to get more young people onto the property ladder. “This is about helping first-time buyers secure their homes, and it’s exactly what’s needed right now to boost their confidence in the market,” he said.

Soh highlighted the importance of targeted support, emphasising that broader measures aimed at stabilising the entire property market are often ineffective for groups such as first-time buyers. The MDI, however, is praised for its focused approach and direct financial aid to those most impacted by rising housing costs.

“Rather than attempting to restructure the entire property sector, which is more complex, the Madani Initiative takes a targeted approach to help those young Malaysians eager to buy their first home but facing financial barriers,” Soh said, adding that it is a practical and data-driven solution.

With the initiative expected to significantly increase homeownership among young Malaysians, he predicted a boost to the real estate sector. This aligns with the government’s broader economic goals under the Madani framework, which aims to create a more inclusive, high-growth economy.

Soh said property developers have expressed optimism, noting that the initiative could help ease overhang issues in the affordable housing segment.

“This programme not only supports young buyers but also helps address mismatches in supply and demand in the affordable housing market, ensuring that more of these homes get into the hands of those who need them,” he remarked.