RM10bil Boost For Housing Credit Guarantee Scheme

Samuel Chua

31st October 2025 - 4 min read

The government has announced an additional RM10 billion allocation under Budget 2026 to expand the Housing Credit Guarantee Scheme (SJKP), bringing the total allocation to RM40 billion to help more Malaysians buy their first homes.

Housing and Local Government Minister Nga Kor Ming said the initiative aims to strengthen access to home financing for first-time buyers and supports the government’s Madani Housing Reform Agenda.

Expanding Access To Home Financing

Speaking in Parliament during his winding-up speech, Nga said that since the scheme was introduced in 2008 until 31 August 2025, a total of RM22.72 billion in loan guarantees had been approved, benefiting 95,460 applicants.

He added that the ministry will continue working closely with Bank Negara Malaysia to ensure all financial institutions participate in the scheme.

Under the programme, eligible applicants can receive loan guarantees of up to RM500,000 for first-home purchases. This includes financing for new, existing, or auctioned units under the government’s i-Biaya initiative.

“This aligns with the Madani government’s goal to enhance access to financing and support home ownership for all Malaysians,” Nga said.

Support For Affordable Housing

Nga also highlighted several ongoing initiatives under Perbadanan PR1MA Malaysia (PR1MA). The Kempen Rumah PR1MA Kita, running until 31 December 2025, offers discounts of up to 25%, one year of free internet, and smart home device packages for eligible buyers.

PR1MA is also covering legal fees to ease buyers’ financial burden. Nga noted that the PR1MA Residensi Brickfields 2 project had been fully booked, reflecting continued demand for affordable housing.

To date, PR1MA has implemented 91 housing projects nationwide, comprising over 54,000 units that have benefitted more than 175,000 Malaysians.

He clarified that PR1MA continues to receive government support. Under Budget 2026, RM30.1 million was allocated for preliminary works on three projects, while RM38 million was approved for the Bandar PR1MA Teluk Intan development. An additional RM75 million was set aside for the Projek Rumah Rakyat (PRR) Harmoni Bestari Jaya in Selangor.

PR1MA aims to deliver 25,000 new units through strategic developments in Kuala Lumpur, Melaka, Perak, and Penang, contributing to the ministry’s target of 500,000 affordable homes by 2030.

Helping B40 Households Build Homes

Meanwhile, Syarikat Perumahan Negara Berhad (SPNB) continues to implement the Rumah Mesra Rakyat (RMR) programme, which assists B40 households earning RM5,000 and below to build affordable homes on their own or family land.

Each RMR unit in Peninsular Malaysia is priced at RM75,000, while units in Sabah, Sarawak, and Labuan range from RM75,000 to RM106,500. The government subsidises RM20,000 per unit, with the remaining cost financed through an interest-free SPNB loan repayable over 16 to 25 years, with monthly instalments of around RM300.

As part of the National Energy Transition Agenda, RMR participants are also being offered affordable solar energy packages to help reduce long-term electricity costs.

Progress On The Urban Renewal Act

Nga also updated Parliament on the progress of the Urban Renewal Act, stating that engagement sessions with state governments, professional bodies, and the public are ongoing to refine the proposed bill before its tabling.

He said the proposal had received broad support during the recent National Planning Congress, which was attended by 5,000 participants.

“The ministry welcomes constructive input from all parties, including Umno’s recent resolutions. The draft bill has gone through 122 engagement sessions and three rounds of Cabinet review,” he said.

Towards A More Inclusive Housing Agenda

Nga reaffirmed the government’s commitment to ensuring that every Malaysian has access to affordable and secure housing. Through coordinated efforts across agencies, including SJKP, PR1MA, and SPNB, the ministry continues to promote inclusive and flexible housing solutions that address the needs of different income groups.

Malaysians exploring financing options for their first homes can also learn more about how home loans work in Malaysia and compare available packages to find the most suitable option.

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