Unveiling Malaysia's Housing Landscape: A Deep Dive into Budget 2024 Initiatives

As Malaysia anticipates a transformative shift in its housing sector, the recently disclosed Budget 2024 is stirring significant conversations within the property domain. Let's dissect the key insights of this fiscal plan, shedding light on the measures set to reshape Malaysia's housing landscape.

image source : freemalaysiatoday

Budget by the Numbers: Economic Reform Empowering the People

Themed "Reformasi Ekonomi, Memperkasa Rakyat" or "Economic Reform, Empowering the People," Budget 2024 exemplifies the unity government's commitment to boosting the national economy and citizen well-being.

With a substantial total allocation of RM393.8 billion, this budget marks a noteworthy increase of RM5.8 billion from the previous year's RM388 billion. While development expenditure sees a decrease from RM97 billion to RM90 billion, there is a strong emphasis on infrastructure investments, particularly in the expansion of light rail transit projects with a significant allocation of RM15 billion.

Broadening Reach of Housing Credit Guarantee Scheme (HCGS) Support

A standout feature of Budget 2024 is the expansion of the Housing Credit Guarantee Scheme (HCGS). Initially securing RM5 billion to aid 20,000 borrowers, this budget doubles the HCGS funding to a substantial RM10 million, extending support to a larger demographic of up to 40,000 borrowers.

Notably, this includes assistance for those with variable income sources, such as gig workers, freelancers, small traders, and entrepreneurs, facilitating their journey towards homeownership.

Revitalizing Urban Projects in the City

Addressing challenges posed by delayed, ailing, and abandoned private housing initiatives is a top priority.

By August 2024, a significant investment of RM23.37 billion has revitalized 256 ailing projects, involving the refurbishment of over 28,000 housing units. To incentivize the recovery of identified abandoned projects, a dedicated guarantee fund of RM1 billion has been allocated. Notably, RM20 million has been granted to Think City for the rejuvenation of downtown Kuala Lumpur, focusing on flagship projects around Masjid Jamek and its surrounding areas.

Stamp Duties on Property Transactions

Effective 2024, a fixed stamp duty fee of RM10 will replace the former rate for real estate transfer documents. This applies to situations where beneficiaries relinquish their rights to eligible beneficiaries as outlined in a will, Faraid, or the Distribution Act of 1958.

Additionally, a strategic measure aims to implement a flat 4% stamp duty rate on memorandum of transfers for acquisitions by foreign individuals and companies, except permanent residents.

Public Housing Sector Investments

Budget 2024 allocates RM385 million for the construction of 14 affordable housing projects (Program Rumah Mesra Rakyat), encompassing 3,500 housing units. For public housing projects (PPRs), a total of RM2.47 billion is assigned, including RM546 million dedicated to sustaining 36 PPRs, with additional funds for new projects and completions.

Noteworthy allocations also include RM460 million for underprivileged individuals in rural areas, RM100 million for low- and medium-cost stratified housing maintenance, and RM100 million for infrastructure upgrades in Chinese New Villages.

In a Nutshell: A Comprehensive Strategy for Inclusive Housing

In summary, Budget 2024 unfolds as a holistic approach to housing reforms, emphasizing inclusivity and sustainability. The expansion of the Housing Credit Guarantee Scheme (HCGS), urban revitalization projects, streamlined stamp duties, and public housing sector investments collectively reflect a comprehensive strategy aligned with the government's economic reform agenda.

As Malaysia embraces this transformative fiscal plan, the nation's housing landscape is poised for positive and inclusive growth.