PTHE HOUSING and Local Government Ministry has proposed providing security deposits of up to RM30,000 to young house buyers seeking their first affordable home but unable to qualify for loans due to their informal job status.
The proposal called - the "Madani Deposit Scheme" is part of the ministry's proposal to the Finance Ministry for next year's fiscal Budget, which Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, is to table in Parliament this month's end.
Housing and Local Government Minister Nga Kor Ming noted that for many young folks, their dreams of home ownership seemed out of reach due to the high prices and the inability to secure long-term financing from banks.
"We proposed in the Budget 2025 for a Madani Deposit Scheme. It represents a critical step in our efforts to ensure that all Malaysians, particularly young between the ages of 21 and 40, have access to affordable housing."
Currently, Ng revealed that an impressive 76.9% of families in Malaysia own homes.
"This statistic is something we can all be proud of, as it reflects the government’s successful efforts in promoting homeownership across the country. However, we must now focus our attention on the youth — the fresh graduates," Nga said at the World Habitat Day celebrations at the Armenian Park in George Town, Penang.
The theme of this global celebration is engaging the youth to realise a better urban future.
With the emergence of a gig economy with no formal employers for the young, Nga said many working adults, especially those in non - traditional forms of employment, the biggest hurdle they face is not the price of the home itself, but the difficulty in securing a loan.
"Many young workers lack the necessary financial documents and stability that banks require for loan approval, leaving them in a precarious position.
“This is where the Madani Deposit Scheme comes in. Under this initiative, the government will provide a deposit of up to RM30,000 for homes priced at or below RM500,000."
This will significantly reduce the financial burden on young buyers, helping them secure the loans they need and turning their dream of ownership into a reality.
"We must understand that helping the young own homes is not just about property; it’s about giving them the stability they need to start families, build careers, and contribute to the nation's future.
“Home ownership is a key part of ensuring that our youth feel secure and empowered in their lives, and it is crucial to our nation’s long-term economic and social well-being," Nga stressed.
The Habitat Day is held under the auspices of the United Nations Human Settlements Programme (UN-Habitat) whose former executive director is Datuk Seri Maimunah Mohd Sharif, who is now the newly installed Kuala Lumpur Lord Mayor.
Nga said that the Ipoh City Hall (MBI) was awarded for this year's UN - Habitat's Scroll of Honour and the Ipoh local authority will receive the international recognition at the main World Habitat Day celebration in Querétaro City, Mexico tomorrow.
MBI is one of the five organisations UN-Habitat has honoured for their exceptional contributions to sustainable urbanisation.
MBI was chosen from 127 nominations submitted by people in the Americas, Africa, Asia, Europe, and Oceania.
They are acknowledged for their efforts to transition from a resource-intensive economy to a regenerative model focused on health, waste management, and ecotourism.
Earlier, Nga launched the Malaysia Urban Forum at the same place. - October 6, 2024.
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