KUALA LUMPUR: The Housing and Local Government Ministry (KPKT) is mulling offering Madani Deposit, which could provide up to RM30,000 financial assistance for first-time homebuyers in the 2025 Budget.
Its minister Nga Kor Ming said the proposed initiative is aimed at easing monthly payment commitments for first-time homebuyers, particularly the youth in the B40 and M40 income groups, and aligns with the ministry's aspiration of ensuring every citizen owns a home.
This, he said, is in line with the government's 'Rumahku, Syurgaku' policy.
He said the ministry has proposed 33 initiatives, valued at nearly RM1 billion, to the Finance Ministry for Budget 2025 and the initiatives were designed to enhance public well-being, while supporting digital transformation and the government's aspirations.
"The proposed initiatives include the development of 100 Madani Recreational Parks, the introduction of the Madani Deposit, the transformation of retention ponds, and the introduction of electronic property sale agreements with e-stamping, among others.
"KPKT aims to develop 100 Madani Recreational Parks equipped with sports facilities and jogging tracks in residential areas to help the public reduce stress, make these parks a family recreational spot, and promote a healthy lifestyle," Nga said in a statement.
He also highlighted the ministry's success in implementing 12 initiatives from the 2024 Budget, with 10 of them achieving over 80 per cent of their targets within six months.
Notable successes include the installation of 12,336 LED street lights in local authority areas and the upgrading of 882 public toilets.
Nga said the ministry has successfully revived 704 sick or abandoned projects, with a total gross development value (GDV) of RM58.94 billion since January 2023, and the effort has enabled over 65,000 homebuyers to secure their desired homes.
"We aim to ensure there are no more abandoned housing projects by 2030.
"KPKT will amend the law to ensure that developers found guilty of fraud will not be allowed to leave the country.
"We will also establish escrow accounts. This means that all money paid by homebuyers will be used exclusively for the intended project."
Currently, without escrow accounts, developers can transfer funds from Project A to Project B, causing Project A to become abandoned, he said.
He said such practice would no longer be permitted after the law amendment.
"Nevertheless, 33 Malaysian developers have been awarded gold at the FIABCI World Prix d'Excellence Awards.
"In housing sector, we must ensure to emulate what is good, reject what is bad."