The upcoming 2026 Budget is poised to reshape Malaysia’s real estate landscape by empowering families with direct financial aid, enabling them to step onto the property ladder or upgrade their homes. Juwai IQI co-founder and group CEO Kashif Ansari highlights that targeted cash assistance programs, such as Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah, will inject fresh momentum into the housing market. This approach shifts away from broad subsidies, focusing instead on households that need support the most, fostering both affordability and aspiration.
Ansari points out that the RM15 billion allocated for cash assistance will significantly raise purchasing power for low- and middle-income families. For example, a household earning RM3,000 monthly could see their affordable home price jump from RM209,000 to RM279,000 with an extra RM300 in aid. Similarly, a family earning RM4,850 could stretch their budget from RM339,000 to over RM408,000—bringing many new urban affordable homes within reach. These changes reflect a deliberate effort to address real-world financial barriers faced by ordinary Malaysians.
Complementing these measures, the government is maintaining support through initiatives like the Step-Up Financing scheme and tax relief on mortgage interest for mid-range properties. Lower borrowing costs following the recent overnight policy rate cut to 2.75 percent also help keep homeownership within reach. Ansari stresses that these policies not only assist families in securing shelter but also promote financial independence by reducing reliance on debt and easing monthly repayment burdens.
Looking beyond affordability, the budget’s emphasis on high-value sectors—such as semiconductors, artificial intelligence, and renewable energy—promises to attract foreign talent and create higher-paying local jobs. This economic diversification will fuel demand across all housing segments, including the luxury market, as expatriates and tourists seek upscale properties. Major infrastructure projects, including the Johor Baru–Singapore Rapid Transit System and MRT3, further underpin this growth by stimulating construction and supporting long-term housing demand.
Malaysia’s property market, which reached a decade-high transaction value in 2024, remains resilient despite a slight dip in volume during early 2025. Ansari expresses confidence that transaction numbers will rebound in the latter half of 2025 and into 2026, supported by strong employment and sustained economic growth. With a balanced focus on affordability and high-end demand, the 2026 Budget sets a solid foundation for a dynamic, inclusive, and forward-looking property sector.