Kuala lumpur: As preparations for the upcoming Budget 2026 to be unveiled in October are underway, the government will also examine support mechanisms to strengthen housing reform, with a particular focus on expanding access to affordable housing, said Finance Minister II Datuk Seri Amir Hamzah Azizan. He emphasized the government’s commitment to ensuring that more Malaysians, especially those in the lower and middle-income groups, can own homes that are within their financial means.
According to BERNAMA News Agency, Amir Hamzah highlighted that reforms under the 13th Malaysia Plan (13MP) are designed to address housing challenges, including the development of new models such as rent-to-own schemes and a gradual shift towards a build-then-sell approach to reduce the risk of abandoned projects. He remarked, “Affordable housing will continue to be a priority for Malaysia going forward, and we are looking at new mechanisms to ensure more people can own and afford homes,” during the launch of the Property Information System Malaysia (PRISM) 2.0.
Commenting on the increase in the overhang of residential units since the first quarter of this year, Amir Hamzah noted that the overall property market remains stable, but reforms are needed to address structural issues. He stated, “The key for us is that the overall market is still stable. What is important is to support the segment that needs it most, especially affordable housing.”
Amir Hamzah also pointed out that housing affordability is closely linked with income levels and highlighted the government’s initiatives to improve this through labour market reforms. He mentioned efforts like minimum wage increases and encouragement for companies to adopt living wages, aimed at enhancing affordability by raising income levels.
To complement these measures, he emphasized the importance of the Housing Credit Guarantee Scheme (SJKP), which allows those without a fixed income to secure housing loans through government guarantees. He identified these as creative solutions to help people enter the property market, reiterating the importance of strengthening income levels as the foundation for affordability.
Further, under the 13th Malaysia Plan (13MP), the government is targeting an increase in labour’s share of the economy from 33 per cent to 40 per cent. He reassured that the expansion of the service tax (SST) would not impact the residential housing sector, with construction and supply of materials for residential projects being exempt to safeguard affordability.
In addition, Amir Hamzah confirmed that the RON95 fuel subsidy rationalisation plan is on track for implementation before the end of 2025, using the national identification card (IC) system to ensure subsidies benefit those most in need. He reiterated, “We have said before, the RON95 subsidy plan will be implemented before the end of this year. It will use the IC and the proper system so that the majority of the people will receive the subsidy.”