Housing Programmes in Malaysia

1
Affordable Housing in Malaysia

• Aysha Maria

2
Deposit Financing for the First House

• A new program has been introduced government by
  the Malaysian government in Budget 2016.
• Known as First House Deposit Financing, this
  plan assists home buyers to make their first
  house down payments.
• Around RM200 million has been allocated for this
  program, which is expected to be beneficial for
  approximately 20,000 to 30,000 buyers.

3
Exemption in Stamp Duty

• Shariah-Compliant loans come with a 20 exemption
  in stamp duty for the purchase of a house.
• Applicable from January 1, 2016 to December 31,
  2017.
• This scheme is to help ease the payment burden of
  home buyers.

4
PR1MA- 1Malaysia Peoples Housing Program

• The 1Malaysia Peoples Housing Programme or PR1MA
  has been introduced to help the Rakyat or
  ordinary people afford a house.
• The houses sold under PR1MA are cheaper in
  comparison to a house sold at the market rate.
  The 2016 budget has planned around 175,000 houses
  that will be sold at 20 below the market price.
• Malaysian citizens with a monthly income between
  RM 2,500 and RM 10, 000 can avail a house through
  PR1MA. After getting a house through this scheme,
  a moratorium of 10 years is levied on the
  property, during which it can neither be
  transferred or sold without prior permission from
  PR1MA.

5
Programme Rumah Mesra Rakyat

• Rumah Mesra Rakyat is a scheme introduced to
  assist low income groups such as farmers and
  fishermen, who wish to have their own house.  
• A total of 10,000 houses with a subsidy of
  RM20,000 have been allocated under this
  programme.
• Applicants aged between 18 to 65 years, having a
  monthly income of RM3,000 and below can opt for
  this scheme.
• The pricing for every house is RM65,000, out of
  which the government will be paying 2 interest
  on the loan subsidy.

6
People's Housing Programme (PPR)

• In order to solve house ownership problems for
  its citizens, the Malaysian government has
  introduced the Peoples Housing Programme.
• With an aim to meet housing requirements of the
  low income group, this scheme aids in the
  resettlement of refugees. Under this programme,
  around 22,300 and 9,800 units of apartments and
  terrace houses respectively, are under
  construction.
• The houses will be priced between RM30,000 and
  RM35,000 per unit in the Malaysian Peninsular. In
  the provinces of Sabah and Sarawak, the price of
  per house will be approximately
  RM40,500.First-time home buyers aged 18 and
  above, with an income of RM2,500 or below (per
  month) can avail this scheme. Applications can be
  sent through the nearest city hall or district
  office.

7

• Other Schemes
• The government has also allocated some funds in
  Budget 2016 for the property sector. Here are a
  few of them for the construction of houses
• RM60 million for Orang Asli community
• RM40 million for the rehabilitation of abandoned
  public housing projects
• Exemption of stamp duty for rescuing contractors
  and buyers of abandoned houses
• In a bid to assist citizens from loan income
  groups afford houses, the government has
  introduced a number of schemes. However, apart
  from this, it is also essential to do proper
  personal finance planning to help save money in
  order to purchase a house in the future.