In a bid to facilitate affordable homeownership, the Malaysian government has announced plans to expand the Rent-to-Own scheme, ensuring greater accessibility for individuals belonging to the B40 and M40 income groups.
Local Government Development Minister Nga Kor Ming affirmed the government’s commitment to forge partnerships with financial institutions, thereby offering enticing and sustainable housing financing options. He highlighted that PR1MA Corporation Malaysia (PR1MA) and Syarikat Perumahan Negara Berhad (SPNB) have been actively engaged in housing projects, including the SPNB Housing and PR1MA Housing programs, designed to cater to the housing needs of the M40 group on a national scale.
To date, a total of 28,583 SPNB housing units have been completed, with 1,024 units currently under construction and 531 units in the planning phase. Furthermore, PR1MA has made significant progress by completing 35,454 affordable housing units, with 14,427 units in various stages of construction and an additional 3,765 units in the planning phase nationwide, as of October 15.
Nga also emphasized the government’s decision to standardize the size of People’s Housing Project (PPR) units at 750 square feet, with each unit featuring a minimum of three bedrooms and two bathrooms. This strategic move aims to enhance the living conditions of PPR residents and ensure seamless integration with essential facilities, such as recreational parks, food courts, and convenience stores.
In its pursuit of promoting homeownership, the ministry has introduced the i-Biaya initiative, offering financing assurance through the Housing Credit Guarantee Scheme (SJKP) tailored to first-time homebuyers, including those with irregular income sources, such as gig economy workers. This comprehensive initiative covers financing up to RM500,000, encompassing the principal financing amount, Mortgage Reducing Term Assurance (MRTA) guarantees, Mortgage Reducing Term Takaful (MRTT), as well as legal and valuation fees.
Nga reported that since the inception of SJKP in 2008 up to September 30, a total of 30,841 loan applications, amounting to RM5.85 billion, have been approved. The 2024 Budget proposes an additional RM10 billion in guarantees to benefit 40,000 borrowers, further reinforcing the government’s commitment to affordable housing.
Furthermore, local authorities have undertaken 1,558 integrated operations during 2022 until August 31, 2023, highlighting the government’s resolve to maintain regulatory standards. As of September 2023, a total of 26,108 business licenses have been revoked due to violations of licensing and premises conditions, underlining the government’s commitment to enforce regulations and uphold the interests of the public.