KUALA LUMPUR: The government is enhancing the loan scheme under the Housing Credit Guarantee Corporation (HCGS) by increasing financing guarantees from 100 to up to 120 per cent of the house price.
Prime Minister Datuk Seri Anwar Ibrahim said the scheme, which is among several initiatives rolled out by the government to improve the quality of people's livelihood under the newly-launched "Madani Economy: Empowering the People" framework, would be applicable for houses worth up to RM300,000.
Anwar, who is also the Finance Minister, added that the scheme would cover all homeownership costs through the loan, including the principal financing amount, legal fees, valuation fees, insurance, furniture purchase, and renovation costs.
"The government has heard the grievances of the people who had to postpone their wishes to own their first house since they are unable to place a deposit due to financial constraints.
"I hereby would like to announce that the government is enhancing the loan scheme under the HCGS," Anwar said in his speech at the launching of the framework here today.
He added that the government had set aside RM5 billion to enhance the scheme.
Anwar also said the Local Government Development Ministry was in the process of formulating the National Housing Action Plan, which included the provision of housing supply based on metrics such as the ratio of the median house price to median income.
"The development of public housing is also being continued, along with boosting the rental market as an effort to meet housing needs," he said.
He also reiterated his unity administration's commitment to ensure access to basic infrastructure including water and electricity to all people in the country.
"The people including rural folks deserve world-class basic services. As of 2022, 97 per cent of Malaysia's population has access to treated water supply.
"The government is committed to addressing the water supply issue in Kelantan and Sabah, in which, we have agreed to allocate an additional total of RM800 million for short-term solutions in both states.
"We will also expedite the implementation of flood mitigation projects in Kelantan, Pahang, Selangor, and Johor, in order to protect the local communities from being affected by flood disasters," he said.
Anwar said the government was also committed to improving transport infrastructure in major cities, including the implementation of Bus Rapid Transport in Johor Bahru and LRT in Penang.
"The implementation of MRT3 in the Klang Valley will also proceed after ensuring reasonable project cost for the government.
"The integration of land public transportation management aims to optimise all existing assets by focusing on efforts to build a better public transportation network between and within cities; as well as improving last-mile connectivity through cost-effective methods, including the use of electric buses," said.