Executive Commentary: Malaysia National Budget 2023

Sheldon Fernandez, Country Manager, Malaysia (PropertyGuru.com.my and iProperty.com.my)

Kindly attribute to: Sheldon Fernandez, Country Manager, PropertyGuru Malaysia (PropertyGuru.com.my and iProperty.com.my)

Kuala Lumpur | Friday, 24 February 2023, We commend the Malaysian Government’s decision in introducing several rakyat-focused initiatives in the recent Budget 2023 announcement, in line with the Malaysia Madani framework to build toward an inclusive and prosperous nation for all.

With this, we welcome the continued initiative of stamp duty exemptions for first-time homeowners with a full exemption given for properties worth RM500,000 and below and 75% discounts will be given for properties between RM500,000 and RM1 million. We look forward to seeing how the local real estate market would be boosted by such initiatives, which in turn, would inspire prospective homebuyers by easing heavy financial commitments that some may not be able to meet.

To further address affordability issues in the property market, we have seen through our study –  PropertyGuru Malaysia Consumer Sentiment Study H2 2022, that 69% of Malaysian respondents would resume their property purchasing plans should the Home Ownership Campaign (HOC) return or a similar initiative be introduced.

Separately, we applaud the Government for the initiative to build more People’s Housing Projects (PPR) with the allocation of RM367 million to support Malaysians seeking homes that are suitable for their needs at affordable costs. In addition, the Government’s Syarikat Jaminan Kredit Perumahan (SJKP) financial scheme to assist borrowers with unstable incomes worth up to RM5 billion in 2023 will be a crucial step to fulfilling the needs of the rakyat and providing housing to those with non-standard incomes.

Moreover, the RM358 million allotment for the Rumah Mesra Rakyat programme to construct 4,250 affordable homes would further support Malaysians on their homeownership journeys. On a broader scale, we also further welcome the allocation of RM30 million to improve and revitalise key city centre areas and make public housing in Kuala Lumpur more liveable. These are important initiatives that will help improve residents’ quality of life.

As many struggled to recover from the damage caused to homes and livelihoods from the flood, we commend the Malaysian Government’s allocation of RM20 million under the Community Grant (Geran Pertubuhan Prihatin Komuniti) to support flood initiatives. We have seen more Malaysians expressing concern about environmental disasters impacting their homes in the PropertyGuru Consumer Sentiment Study H2 2022. With this, we hope that initiatives announced in the refreshed Budget 2023 would bring comfort to concerned Malaysians, leading to an improved confidence within the property market.

We at PropertyGuru are ready to collaborate with the government and provide them with crucial insights to lead Malaysia’s property market to becoming a stronger, and more resilient nation.


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