KUALA LUMPUR (Jan 21) — The federal government is aiming to support more than 100,000 Malaysians in purchasing their first homes this year through the Housing Credit Guarantee Scheme (SJKP), as part of its broader efforts to improve access to home ownership.
To meet this target, the total financing guarantee limit under the scheme was increased by RM10 billion in 2025. This expansion raises the cumulative guarantee allocation since SJKP was introduced in 2008 to RM40 billion, strengthening the programme’s capacity to assist first-time buyers across the country.
As of Sept 30, 2025, SJKP has approved RM23.17 billion in housing loan guarantees, enabling nearly 97,200 individuals to secure homes. With approximately RM16 billion in guarantees still available, the scheme continues to provide substantial funding support for eligible applicants.
SJKP primarily serves households within the B40 and M40 income brackets, including individuals without fixed monthly incomes or traditional salary documentation. This includes gig economy workers and younger buyers who often face challenges in meeting standard bank lending requirements.
Under the programme, financing guarantees of up to RM500,000 are available for first-home purchases, covering new developments, subsale properties, and auction units. To further reduce upfront financial barriers, the SJKP MADANI initiative allows guarantees of up to 120% of a property’s value, helping buyers manage costs such as legal fees and renovation expenses.
In 2025, a step-up financing feature was also introduced to ease early repayment pressure. This option offers lower monthly instalments during the initial three to five years, with repayments increasing gradually according to a predetermined schedule. The structure is designed to align with expected income growth among younger homeowners.
Housing and Local Government Minister Nga Kor Ming said the ministry plans to engage with Bank Negara Malaysia and financial institutions to encourage wider participation and smoother implementation of the scheme.
“KPKT will continue to closely monitor the rollout of SJKP to ensure it delivers meaningful results and reaches those who need it most,” he said.
From a property market perspective, initiatives like SJKP are expected to support demand for entry-level and mid-range homes, particularly in growth corridors around Kuala Lumpur and Selangor. Increased homeownership can also stimulate surrounding commercial activity, benefiting areas near office space in Bukit Jalil, commercial property in KL, and employment zones supported by industrial land in Selangor.
Over time, stronger residential demand in these areas can have positive spillover effects on nearby industrial property in the Subang area and established factory hubs in Puchong, reinforcing the interconnected nature of housing, employment, and commercial development in the Klang Valley.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 21 Jan 26
Malaysia