Budget 2026 to strengthen housing reform and expand affordable access

PUTRAJAYA: The government will examine support mechanisms to strengthen housing reform in the upcoming Budget 2026, with a particular focus on expanding access to affordable housing.

Finance Minister II Datuk Seri Amir Hamzah Azizan stated the government is committed to ensuring more Malaysians, especially those in lower and middle-income groups, can own homes within their financial means.

Reforms under the 13th Malaysia Plan are designed to address housing challenges through new models like rent-to-own schemes and a gradual shift towards a build-then-sell approach.

Amir Hamzah confirmed affordable housing remains a priority as the government explores new mechanisms to help more people own and afford homes.

He noted the overall property market remains stable despite an increase in residential unit overhang since the first quarter of this year.

The minister stressed that housing affordability is closely linked with income levels, highlighting ongoing labour market reforms to strengthen household purchasing power.

Initiatives such as minimum wage increases, progressive wages, and encouragement for companies to adopt living wages aim to improve affordability by raising income levels.

Amir Hamzah highlighted the Housing Credit Guarantee Scheme as a creative solution allowing those without fixed incomes to secure housing loans through government guarantees.

He emphasised that fixing the basis of affordability requires strengthening income levels as the most important area of focus.

The government targets increasing labour’s share of the economy from 33% to 40% under the 13th Malaysia Plan.

Amir Hamzah confirmed the expansion of the service tax would not affect the residential housing sector as construction and materials for residential projects remain exempt.

He reaffirmed the RON95 fuel subsidy rationalisation plan remains on track for implementation before the end of 2025 using the national identification card system to ensure subsidies benefit those most in need. – Bernama

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