Malaysia Budget 2024 : Real Estate Highlights
Madani Ekonomi : Empowering The People
Introduction to Budget 2024
All the efforts drawn up will follow every priority and benchmark of the MADANI Economy which is broken down into three main focuses which are:
- Best governance for efficient service
- Restructuring the economy to bolster growth
- Improving the people’s standard of living
- Budget 2024 is Malaysia’s largest-ever budget, at RM393.8 billion.
The increased allocation totals RM7.7 billion, representing a significant boost from the previous budget.
- Finance, Education, and Health: 42.3%
- Social sector: RM149.7 billion
- Economy sector: RM66.7 billion
- Security sector: RM40.1 billion
- General administration: RM16.9 billion
Prime Minister Anwar Ibrahim has stated that the government has taken on a debt and liabilities burden amounting to RM1.5 trillion, equivalent to 82% of the country’s GDP.
Real Estate Highlights
- Advancement of PPR projects
An allocation of 546 million ringgit is dedicated to advancing 36 Public Housing Programs (PPR), including the initiation of a new project in Kluang, Johor. Additionally, 15 PPR projects are anticipated to reach completion in the coming year, benefitting approximately 5,100 prospective residents. - Housing units under Rumah Mesra Rakyat
Under the Rumah Mesra Rakyat Programs, a total of 14 initiatives continue to progress, with an allocation of 358 million ringgit, focused on constructing 3,500 housing units. - Budget allocation for homes in rural areas
To assist approximately 65,000 underprivileged individuals in rural areas in building new homes or repairing existing ones, the government has allocated 460 million ringgit. - Allocation for maintenance and repairs
A sum of 100 million ringgit has been earmarked for the maintenance of low and medium-cost stratified public and private housing developments nationwide. This encompasses critical repairs to water tanks, roofs, wiring systems, and the installation of closed-circuit cameras. - Enhancement of Skim Jaminan Kredit Perumahan (SJKP)
To benefit 40,000 borrowers, the government will enhance the Skim Jaminan Kredit Perumahan, allocating up to 10 billion ringgit for the SJKP program. - Flat rate for stamp duty
As a means to regulate real estate prices, the Government is proposing a flat rate of 4 percent for stamp duty on the transfer of real estate ownership by non-citizens and foreign-owned companies. This excludes individuals who hold permanent resident status in Malaysia. - Revised stamp duty structure for ownership transfer
Commencing in 2024, the Government is introducing a revised stamp duty structure for instruments related to the transfer of real estate ownership involving beneficiaries who are renouncing their rights in accordance with a will, faraid, or the Partition Act 1958. This adjustment will entail a fixed stamp duty fee of 10 ringgit, replacing the previous ad-valorem rate. - Relaxed requirements for Malaysia My Second Home (MM2H)
The government has also decided to ease the current requirements for Malaysia My Second Home (MM2H) applications in a bid to attract more foreign tourists and investors to Malaysia.
This enhancement of the MM2H program is anticipated to bolster investment activities within the Malaysian financial market and stimulate growth in the country’s real estate sector.
Outlook for 2024
The 2024 budget will mark a pivotal moment for the nation’s economic development, with the government expected to introduce robust policies to provide substantial assistance to the people.
This budget is anticipated to fuel sustained economic development and contribute positively to the nation’s prosperity and the well-being of its citizens.
As we await the budget announcement, we look forward to witnessing the potential positive impact on the real estate sector and various key industries, paving the way for progress and growth.