PETALING JAYA: While pledging to narrow the fiscal deficit to 3.5% of gross domestic product next year, Prime Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2026 on Friday, said the Madani government will continue to ease homeownership for the rakyat through extended stamp duty exemptions and higher financing limits for civil servants.
The government announced that the full stamp duty exemption for first-time home purchases of up to RM500,000 will be extended until 2027, while the Public Sector Home Financing Board (LPPSA) loan limit will be raised to RM1 million to facilitate civil servants’ property ownership.
Following the announcement, Mah Sing Group Bhd said the measures would encourage more first-time buyers to enter the property market and improve affordability, particularly for the M40 segment.
Founder and group managing director Tan Sri Leong Hoy Kum said the government’s move to extend the exemption is timely, given the sustained demand for affordable homes.
“Homeownership remains a key aspiration for Malaysians. The continued stamp duty exemption, coupled with LPPSA’s higher loan eligibility, will provide much-needed support to young professionals and families looking to purchase their first property,” he said.
Mah Sing said the government’s allocation of RM2.5 billion to build 20,000 affordable homes under the 1Malaysia Civil Servants Housing Programme and the People’s Housing Programme will also support demand for mass housing projects.
The group noted that Budget 2026’s focus on infrastructure development and public transport connectivity will enhance the attractiveness of township developments.
“Integrated townships that offer connectivity and access to amenities will continue to see healthy demand. We believe these measures will help sustain long-term growth for the property sector,” Leong said.
He added that Mah Sing will continue to launch products in line with market needs, particularly homes priced below RM500,000, which have seen resilient demand despite a challenging economic backdrop.
Budget 2026, is Malaysia’s largest to date and seeks to balance fiscal consolidation with support for growth. The government projected GDP growth of 4% to 5% next year, supported by domestic demand and targeted incentives.
For the property sector, analysts said the combination of housing incentives and broader economic measures is likely to sustain buying interest, particularly among first-time homeowners. However, they cautioned that rising construction costs and interest rates may continue to pose challenges for developers.
Leong said Mah Sing remains committed to aligning its product strategy with national priorities, especially in the affordable housing segment. “By focusing on value-driven homes and leveraging digital innovations in marketing and construction, we aim to make quality housing more accessible to Malaysians.”