KUALA LUMPUR: To help the M40 cope with rising living costs, the government has introduced a new RM7,000 tax relief on housing loan interest for first-time homeowners.
In a written reply to Senator Datuk Prof Emeritus Dr Mohammad Redzuan Othman in the Dewan Negara yesterday, Finance Minister II Datuk Seri Amir Hamzah Azizan said the new relief applies to properties priced between RM500,000 and RM750,000.
He said the government has also raised allocations for Sumbangan Tunai Rahmah (STR) and the Basic Rahmah Contribution (Sara) to RM15 billion in 2025, up from RM10 billion last year. This includes the one-off RM2 billion “Penghargaan Sara” announced in July.
Amir Hamzah said further steps were being taken to offset the impact of rising costs, including higher allocations for subsidies and price controls.
“An allocation of RM1 billion has been provided to address living costs more broadly, including price controls on essential goods such as rice and cooking oil through the Payung Rahmah programme, which has been allocated RM600 million for 2025.
“The Rahmah sales initiative is being further expanded to offer essential goods at affordable prices across all state constituencies, benefiting all groups including
the M40.
“The government has also allocated subsidies for other essential goods, including cooking oil under the cooking oil price stabilisation scheme, electricity subsidies, targeted diesel subsidies, as well as the provision of the Madani subsidy assistance or Budi Madani, which helps stabilise prices.
“A large majority of the people will continue to enjoy fuel subsidies with the upcoming targeting of RON95 subsidies.”
On education, RM791 million has been allocated under the
Back-To-School aid to help families with school expenses, while the My50 monthly travel pass will continue to provide affordable access to public transport. Existing tax reliefs for children, medical expenses, lifestyle spending, EPF and Socso contributions and childcare costs will also be maintained.
Amir Hamzah said income measures are being strengthened through a revised minimum wage – the Progressive Wage Policy and the new Public Service Remuneration System – all aimed at raising disposable income for households already contending with higher costs.
“These initiatives aim to ensure middle and lower-income households are not overburdened by cost-of-living pressures.
“The 13th Malaysia Plan will serve as the foundation for economic reform with a focus on inclusive, balanced and sustainable development.”
