Mah Sing Group Bhd has proposed that the government revive the Home Ownership Campaign (HOC) in the upcoming 2025 Budget to support first-time homebuyers and accelerate the recovery of the property sector. The campaign, which was last held in 2021, played a crucial role in helping Malaysians purchase homes and in reducing the property overhang.
Importance of the HOC for Economic Recovery
Mah Sing’s founder and group managing director, Leong Hoy Kum, emphasized the positive impact of the HOC on the broader economy. He noted that the campaign, first introduced in 2019, had a multiplier effect on more than 140 related industries, benefitting the overall economic landscape.
“The incentives provided under the HOC, such as the 100% stamp duty exemption for properties priced between RM300,001 and RM1 million, were essential in assisting homebuyers and addressing the housing overhang issue,” Leong said, as reported by Bernama.
Proposed Incentives for First-Time Homebuyers
Leong suggested that the government consider reinstating key features of the HOC, including a 10% discount on property purchase prices for first-time homebuyers. This, he believes, would significantly promote homeownership among young Malaysians and middle-income individuals, particularly in urban areas where property prices continue to rise.
In addition, Leong proposed introducing a one-off RM30,000 grant for first-time homebuyers purchasing properties costing up to RM500,000. He argued that such a grant would alleviate the financial burden on young Malaysians and those in the middle-income group, making homeownership more attainable.
Additional Measures to Support the Property Market
Leong also recommended that the government reintroduce tax deductions for housing loan interest, a policy that was briefly implemented from 2009 to 2010. This tax relief allowed for a deduction of up to RM10,000 per year on interest paid on housing loans for three consecutive years, providing significant financial support to first-time homebuyers.
To further support the property market, Leong called for a reduction or removal of compliance costs and a streamlining of approval processes. He highlighted that simplifying regulatory procedures and expediting approvals would help developers lower project timelines and costs, ultimately making housing more affordable for the general public.
Conclusion
Reviving the Home Ownership Campaign and implementing these proposed measures could provide a significant boost to the Malaysian property market, particularly for first-time homebuyers. By offering targeted incentives and reducing development costs, the government could help stimulate economic growth while making homeownership more accessible to a broader segment of the population.
