KUALA LUMPUR: The Real Estate and Housing Developers' Association Malaysia (Rehda) has suggested that Housing and Local Government Ministry's (KPKT) Budget 2025 proposals for Madani deposit and a scheme akin to the past developers interest bearing scheme (DIBS), be only for price-controlled affordable housing.
KPKT submitted 33 2025 Budget initiatives to the Ministry of Finance (MoF) recently, outlining various proposed measures to improve the wellbeing of the rakyat.
According to Rehda, the more restricted and controlled criteria DIBS scheme will enable purchasers to have more in their reserves to address any other financial concerns, especially rental payment for their current residence, since developers will cover the interest cost incurred during the construction period.
Its president Datuk Ir Ho Hon Sang said the Madani deposit, if announced during the Budget presentation in Oct, will greatly assist more Malaysians to own homes.
"More often than not, the 10 per cent deposit has been a huge barrier to those without enough savings, or youngsters who have just started their career and putting down their roots. "Whilst they are able to commit to the monthly repayments, the upfront 10 per cent is a major challenge and Rehda supports any initiative to help Malaysians," he said in a statement.
Although final details of the initiatives have yet to be released, Rehda said both the Madani deposit and the DIBS-like scheme can and should only be applied to price-controlled affordable housing, to ensure no impact on the pricing of free-market affordable housing.
Ho added that at the end of the day, the strategic proposals and the consideration the ministry gives to future homeowners is something that industry stakeholders should emulate. "All related stakeholders share equal responsibility to make homeownershipattainable for the rakyat. "We are hopeful for the 2025 Budget announcement to bring good news to the industry for the benefit of all Malaysians as well as the nation. "Rehda will continue to encourage our members to uphold our nation-building role of providing quality, affordablehomes for the rakyat in a timely and sustainable manner," he noted.