KUALA LUMPUR: The Real Estate and Housing Developers’ Association (REHDA) has 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 this would allow more Malaysians access to the innovative programme and would go a long way to ensure adequate housing for the Bottom 40 (B40) income group.
Prime Minister Datuk Seri Anwar Ibrahim announced in Budget 2025 today that the RM900 million allocation for 48 Program Residensi Rakyat projects and 14 Rumah Mesra Rakyat projects.
Ho said tax exemptions on loan interests of up to RM7,000 for homes priced 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 Housing 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 as 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 in a preliminary response following the Budget 2025 announcement.
He said these efforts speak volumes of the government’s intention to ensure homeownership for all rakyat, and to financially assist youths who are just starting their career to purchase homes.
Ho also said the step-up financing scheme, in particular, 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,” said Ho.
On another matter, he said that as an industry that has frequent engagements with the federal and state governments, it look forward to perform submissions and set appointments online as it would contribute to reducing the cost of doing business.
Meanwhile, Mah Sing Group Bhd said the introduction of tax relief on housing loan interest for first-time home buyers would positively benefit Malaysians aspiring to own their first homes.
This tax relief could be claimed for three consecutive assessment years for sale and purchase agreement finalised between Jan 1, 2025 and Dec 31, 2027.
“Mah Sing is committed to supporting 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,“ it said in a statement.
Meanwhile, 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.
Besides, 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.
