Govt Expands Affordable Housing Agenda In Budget 2026

KUALA LUMPUR, Oct 10 (Bernama) -- The government will continue expanding its affordable housing agenda under Budget 2026, focusing on inclusive development that benefits all segments of society, Prime Minister Datuk Seri Anwar Ibrahim announced in Parliament today.

He said RM672 million has been allocated to fund the People’s Residency Programme (PRR) and Rumah Mesra Rakyat, with some projects expected to be completed next year, benefiting over 33,000 residents, including the Ayer Lanas PRR in Jeli, Kelantan, and Masai PRR  in Johor.

To further support first-time homebuyers, especially gig workers and the self-employed, Anwar said the government will expand the Housing Credit Guarantee Scheme (SJKP) to 80,000 applicants, doubling the scheme’s guarantee capacity to RM20 billion.

“Budget 2026 also sets aside RM500 million to repair or rebuild over 3,300 dilapidated homes, including 380 houses for fishermen, while RM143 million will be used to upgrade the liveability of low- and medium-cost flats under the PPR programme, including the replacement of ageing elevators.

“Almost RM90 million will be allocated to improve infrastructure in Chinese New Villages and Indian villages, while RM95 million will go towards upgrading public toilets and parks across local government jurisdictions,” he said.

Aligned with the aspirations of the 13th Malaysia Plan (RMK13), Anwar said the government is encouraging financial institutions to support rent-to-own schemes and the build-then-sell model, to offer more flexible pathways to homeownership.

To support urban regeneration, a special tax deduction of 10 per cent on eligible expenses, capped at RM10 million, will be offered for the conversion of commercial buildings into residential units.

In promoting religious harmony, the government has allocated RM50 million to maintain and repair registered non-Muslim places of worship across the country, including those in Sabah and Sarawak.

Anwar also announced the introduction of three pilot Vertical School projects, integrating educational facilities within residential buildings, as part of a new urban model under the Kota MADANI initiative.

The projects are the Kota MADANI Precinct 19 (Putrajaya), Rumah Bakat MADANI SkyWorld Pearlmont (Seberang Perai, Penang) and Residensi Aman MADANI (Bandar Sri Permaisuri, Kuala Lumpur).

Kota MADANI Precinct 19 will become the country’s first smart city, powered by artificial intelligence and green technology, offering 10,000 housing units, with 80 per cent reserved for civil servants.

-- BERNAMA