PETALING JAYA: The government will ramp up its public housing and urban development initiatives under Budget 2026, including the introduction of Kota MADANI Presint 19, Malaysia’s first smart, AI-integrated, and green city featuring 10,000 homes, of which 80% are reserved for civil servants.
Prime Minister Datuk Seri Anwar Ibrahim said the Kota MADANI model represents the government’s commitment to sustainable, people-centred urban development under the MADANI philosophy.
He added that the Vertical School concept will also be introduced to optimise land use in high-density areas, combining schools and housing within a single complex.
The three pilot projects include Kota MADANI Presint 19 in Putrajaya, Rumah Bakat MADANI SkyWorld Pearlmont in Seberang Perai, Penang, and Residensi Aman MADANI in Bandar Sri Permaisuri, Kuala Lumpur.
The government will continue expanding public housing through the People’s Residency Programme (PRR) and Rumah Mesra Rakyat (RMR), with RM672 million allocated.
Several projects, including PRR Ayer Lanas in Kelantan and PRR Masai in Johor, are expected to be completed next year, benefitting 33,000 residents.
To help more Malaysians own homes, the SJKP housing guarantee scheme will be doubled to RM20 billion, enabling 80,000 first-time homebuyers, including gig workers and the self-employed, to secure financing.
In addition, more than 3,300 dilapidated houses, including 380 fishermen’s homes, will be rebuilt or repaired with a RM500 million allocation.
The government will also improve living conditions in Public Housing Projects (PPRs) with:
RM143 million to maintain and upgrade low- and medium-cost strata housing, including elevator replacements;
RM90 million to upgrade infrastructure in Chinese New Villages and Indian settlements; and
RM95 million to refurbish public toilets and parks across local councils.
To strengthen community well-being, PPR residents will benefit from fire and water safety awareness programmes through the Bomba Bersama Rakyat initiative, and People’s Sports Activities such as swimming lessons, martial arts, and recreation programmes for families and senior citizens.
“For first-time homebuyers, the government will extend full stamp duty exemptions on property transfer and loan agreements for homes priced up to RM500,000 until 31 December 2027.
“Meanwhile, non-citizens and foreign companies — except permanent residents — will face a flat stamp duty rate of 4% to 8% on property transfers, a move aimed at keeping the property market affordable and competitive,” he said.
To encourage the conversion of commercial buildings into residential units, developers will receive a special tax deduction of 10% on qualifying renovation and conversion costs, capped at RM10 million.
Anwar said the government also encourages financial institutions to support rent-to-own and build-then-sell housing schemes in line with the 13th Malaysia Plan (RMK13) to promote homeownership.
Recognising Malaysia’s cultural diversity, RM50 million has been allocated to repair and maintain registered non-Muslim houses of worship nationwide, including in Sabah and Sarawak.
