INITIATIVE OF NATIONAL HOUSING POLICY

NATIONAL HOUSING POLICY 1.0

In the Tenth Malaysia Plan (2011-2015), some key points on housing target as follows:

i. Build 78,000 new affordable public housing units with low cost units given to
qualified individuals and families with incomes lower than RM2,500 per
month
ii. ii. Establish a Housing Maintenance Fund for residents of low cost housing
units to conduct repairs
iii. iii. Poverty eradication agencies such as the Ministry of Housing and Local
Government will be given greater mandates to cover and assist the bottom
40% of households.

As the government’s commitment to providing housing for low income group through the
allocations for public housing, the Malaysian government also has introduced several
housing programs as follows:

a) Low Cost and Affordable Public Housing Program

The program is implemented by public and private sectors aimed at providing
residential facilities to low income groups that aim to improve the quality of life
and poverty eradication is achieved. This program is targeted to those earning
less than RM1,500.
b) Program Perumahan Rakyat Miskin Tegar / Housing Development Program for
the Hardcore Poor (PPRT)
The program works by creating opportunities to increase their income, providing
better housing and food supplements for children, and providing educational
assistance. These programs were part of efforts to eradicate poverty among the
rural poor as well as to provide them with decent houses with basic amenities.
c) Skim Rumah Pertamaku / My First Home Scheme (SRP)
The scheme is one of the measures announced by the Government in the 2011
Budget aimed at assisting young adults to own a home. The scheme allows
home buyers to obtain 100% financing from financial institutions, enabling them
to own a home without having the need to pay a 10% down payment.
d) Perumahan Rakyat 1Malaysia / 1Malaysia People’s Housing Program (PR1MA)
PR1MA is a program dedicated to providing affordable quality housing for the
urban middle income group. It was established under the PR1MA Act 2012,
which was passed by Parliament on 29 November 2011 and gazetted on 9
February 2012 to plan, develop, construct and maintain affordable housing for
middle income households in key urban centers.
e) Jariah Charity Program (PAJ)
Jariah Charity Program (PAJ) or abbreviation was a program introduced by the
Malaysia Government in Budget 2008 in which the fund of RM50 million is
provided for repairing dilapidated houses of hardcore poor nationwide. The
concept of Corporate Social Responsibility (CSR) is similar to that applied in the
private sector.
f) Rumah Mesra Rakyat 1Malaysia (RMR1M) Program
This program was created to help low income groups such as fishermen, farmers
and poor families who have no home or live in dilapidated houses (weak), but has
its own home ground to have a perfect and comfortable. Qualifying applicants are
citizens of Malaysia, the gross household income not more than RM1,500 per
month, not having their own home or have dilapidated houses are not perfect,
have land / site is appropriate and there are no restrictions / charges on him. If
the land does not belong to the applicant, Certificate / Statutory authorization
from the landlord is required to build and mortgage the land to Syarikat
Perumahan Negara Berhad.
NATIONAL HOUSING POLICY 2.0

The very first policy announced by the new Pakatan Harapan (PH) government, the DRN
focuses on solving the housing crisis seen in the bottom 40 per cent income (B40) group.

Therefore, initiatives were seen from last year’s Budget 2019 reading when initiatives were
introduced to address home ownership for the B4 group. These include incentives such as
an exemption of the real property gains tax for low-cost, low-medium cost and affordable
housing with prices below RM200,000.

A fund amounting to RM1 billion was also established by Bank Negara Malaysia to help
those in the lower income group earning not more than RM2,300 per month to own a house
for the first time.

The fund, which was made available from January 1, 2019 at participating financial
institutions, is for the purchase of affordable homes priced up to RM150,000.

For first-time home-buyers purchasing residential properties priced up to RM500,000, the

government will exempt stamp duty up to RM300,000 on sale and purchase agreements, as
well as loan agreements for a period of two years until December 2020.

Overview of DRN 2018-2025 :

a) Focus One – To Ensure Quality Homes for all

b) Focus Two – Improving accessibility and affordability of housing
c) Focus Three – Ensuring quality and cohesive neighbourhoods
d) Focus Four – Improving coordination between housing and transportation
development to better the quality of living
e) Focus Five – Strengthening institutional capabilities to implement the DRN 2018-
2025
REFERENCES

National Housing Department (2010), National Housing Policy, Ministry of Housing

and Local Government

National Housing Department, Ministry Of Housing and Local Government. 2011

“National Housing Policy”

" Housing in the New Millennium - Malaysian Perspective " By : Ministry of Housing
and Local Government Malaysia

Of Housing Policies and Home Ownership – By Rache Lau,

Bizhive@theborneopost.com