Kuala lumpur: The government will continue expanding its affordable housing agenda under Budget 2026, focusing on inclusive development that benefits all segments of society, Prime Minister Datuk Seri Anwar Ibrahim announced in Parliament today.
According to BERNAMA News Agency, RM672 million has been allocated to fund the People's Residency Programme (PRR) and Rumah Mesra Rakyat, with some projects expected to be completed next year. This initiative aims to benefit over 33,000 residents, including those in the Ayer Lanas PRR in Jeli, Kelantan, and Masai PRR in Johor.
To further support first-time homebuyers, especially gig workers and the self-employed, Anwar stated that the government will expand the Housing Credit Guarantee Scheme (SJKP) to 80,000 applicants, effectively doubling the scheme's guarantee capacity to RM20 billion.
Budget 2026 also allocates RM500 million to repair or rebuild over 3,300 dilapidated homes, including 380 houses for fishermen. An additional RM143 million will be used to upgrade the liveability of low- and medium-cost flats under the PPR programme, which includes the replacement of ageing elevators.
Almost RM90 million will be directed towards improving infrastructure in Chinese New Villages and Indian villages, while RM95 million is earmarked for upgrading public toilets and parks across local government jurisdictions.
Aligned with the aspirations of the 13th Malaysia Plan (RMK13), Anwar mentioned that the government is encouraging financial institutions to support rent-to-own schemes and the build-then-sell model, offering more flexible pathways to homeownership.
To support urban regeneration, a special tax deduction of 10 per cent on eligible expenses, capped at RM10 million, will be offered for converting commercial buildings into residential units.
In a move to promote religious harmony, the government has allocated RM50 million to maintain and repair registered non-Muslim places of worship across the country, including those in Sabah and Sarawak.
Anwar also announced the introduction of three pilot Vertical School projects, integrating educational facilities within residential buildings, as part of a new urban model under the Kota MADANI initiative. These projects include Kota MADANI Precinct 19 in Putrajaya, Rumah Bakat MADANI SkyWorld Pearlmont in Seberang Perai, Penang, and Residensi Aman MADANI in Bandar Sri Permaisuri, Kuala Lumpur.
Kota MADANI Precinct 19 is set to become the country's first smart city, powered by artificial intelligence and green technology, offering 10,000 housing units, with 80 per cent reserved for civil servants.