Government’s Allocation for Housing Credit Guarantee Scheme
The 2025 budget has proposed an allocation of RM12.8 billion for the housing credit guarantee scheme, which aims to provide loans of up to RM500,000 for first-time buyers.
National House Buyers Association’s Concerns
The National House Buyers Association (HBA) has called for the government to tighten its housing credit guarantee scheme (SJKP) criteria. In a statement, HBA expressed concern over the existing RM10 billion guarantee, approved in Budget 2024, which applies to houses priced at about RM500,000, exceeding the association’s defined affordability threshold of RM150,000 to RM300,000.
Gig Economy Workers Deserve Access to Financing
HBA emphasized that the allocation will support those without stable incomes, such as gig economy workers, in buying houses costing less than RM300,000. "The gig economy has been a lifesaver to many of the rakyat who lost their jobs and resorted to becoming ride-hailing drivers, food-delivery riders and other forms of freelance work," it said, adding that these employees deserve access to financing for asset purchases, including property.
Rehda’s Endorsement
The Real Estate and Housing Developers’ Association (Rehda) also welcomed the budget’s continued allocation of RM10 billion for 20,000 rakyat through the SJKP, which will benefit potential homebuyers without monthly income statements. Rehda president Ho Hon Sang highlighted the scheme’s potential to ensure homeownership for all rakyat and to financially assist youths who are just starting their career to purchase homes.
Step-up Financing Scheme
Ho also emphasized the step-up financing scheme, an initiative that Rehda has long advocated for, which provides lower initial repayment rates to help first-time homebuyers. "We call upon financial institutions to also take heed of this move and introduce their own step-up financing schemes, thus allowing more Malaysians access to this innovative programme," he added in a statement.
Conclusion
The government’s continued allocation for the housing credit guarantee scheme is a step in the right direction to address the needs of first-time homebuyers. However, HBA’s concerns about the scheme’s criteria and Rehda’s emphasis on the step-up financing scheme highlight the importance of finding a balance between supporting first-time buyers and ensuring that the scheme is used effectively.
FAQs
- What is the 2025 budget’s allocation for the housing credit guarantee scheme?
The 2025 budget has proposed an allocation of RM12.8 billion for the housing credit guarantee scheme. - What are the concerns of the National House Buyers Association (HBA) regarding the scheme?
HBA is concerned that the existing RM10 billion guarantee, approved in Budget 2024, applies to houses priced at about RM500,000, exceeding the association’s defined affordability threshold of RM150,000 to RM300,000. - How can this scheme benefit gig economy workers?
The allocation will support those without stable incomes, such as gig economy workers, in buying houses costing less than RM300,000. - What is the step-up financing scheme, and how can it benefit first-time homebuyers?
The step-up financing scheme provides lower initial repayment rates to help first-time homebuyers. It is an initiative that Rehda has long advocated for, and financial institutions are encouraged to introduce their own step-up financing schemes to make it more accessible to more Malaysians.