KUALA LUMPUR – The Housing and Local Government Ministry’s Madani Deposit proposal is set to significantly boost homeownership among Malaysians, according to the Real Estate and Housing Developers’ Association Malaysia (Rehda).
Rehda president Datuk Ho Hon Sang noted that the initiative mirrors a long-standing proposal by Rehda, Bernama reported.
He highlighted that the 10% deposit requirement has been a substantial barrier, particularly for young adults just beginning their careers and seeking to establish themselves.
“While they are able to commit to the monthly repayments, the 10% downpayment is a major challenge and Rehda supports any initiative to help Malaysians,” he said in a statement today.
The Madani Deposit initiative aims to provide a deposit of up to RM30,000 to first-time homebuyers, in line with the government’s My Home, My Heaven policy.
Meanwhile, Ho said Rehda also lauded the ministry’s proposal to introduce another initiative to help alleviate homebuyers’ financial concerns beyond the monthly payments to their respective banks.
The scheme, akin to the previous Developer Interest Bearing Scheme (DIBS) but with stricter regulations, would allow buyers to maintain more financial reserves.
Under this scheme, developers would cover interest costs incurred during the construction period, enabling buyers to manage other financial obligations, such as paying rent for their current residence.
Although the final details of the initiatives have yet to be released, Rehda opined that both the Madani Deposit and the DIBS scheme could and should only be applied to controlled-priced affordable housing and therefore will have no impact on the pricing of affordable housing.
“We are hopeful that the Budget 2025 announcement will bring good news to the industry, benefiting all Malaysians as well as the nation as a whole.
“Rehda will continue to encourage our members to uphold our nation-building role of providing quality, affordable homes for the rakyat in a timely and sustainable manner,” Ho added.
Last week, Housing and Local Government Minister Nga Kor Ming submitted 33 proposals worth almost RM1 billion to the Finance Ministry for Budget 2025.
Besides the Madani Deposit, other proposals include the development of 100 Madani Recreation Parks; transformation of reservoirs; electronic sales agreements; and e-stamping to improve the wellbeing of the people, in line with the digital transformation and aspirations of Madani Malaysia. – August 26, 2024