QUOTING Indonesian thinker Buya Hamka—"Do not let the city be grand while the hearts of its people remain barren”—Prime Minister Dato’ Seri Anwar Ibrahim unveiled a housing vision rooted in spiritual and social fulfilment alongside modern urban design.
“This inner strength is what gives meaning to the MADANI philosophy,” Anwar said in Parliament, announcing Kota MADANI Presint 19 in Putrajaya as Malaysia’s first integrated smart, green and AI-enabled city. The township will include 10,000 residential units, 80 percent of which are reserved for civil servants.
As part of this reimagined urban model, the government is piloting the concept of **Vertical Schools**—integrating educational facilities within high-density housing developments. Three pilot projects are being launched in Putrajaya, Seberang Perai in Penang, and Bandar Sri Permaisuri in Kuala Lumpur.
Under Budget 2026, the government is also continuing a multi-pronged strategy to expand access to affordable housing across the country.
The Residensi Rakyat and Rumah Mesra Rakyat programmes, with a combined allocation of RM672 million, will deliver homes to over 33,000 people next year. Projects include PRR Ayer Lanas in Kelantan and PRR Masai in Johor.
An enhanced **RM20 billion housing credit guarantee scheme** will help an additional 80,000 first-time homebuyers, including gig workers and the self-employed, secure financing. This doubles the previous cap of RM10 billion.
More than 3,300 dilapidated homes—380 of them belonging to fishermen—will be rebuilt or refurbished with a RM500 million allocation.
Improving liveability in low-cost housing areas is another key focus. RM143 million will go toward upgrading public housing facilities, including the replacement of ageing lifts in strata housing. A further RM90 million is allocated to upgrade basic infrastructure in Chinese new villages and Indian settlements.
Additionally, RM95 million will be spent to restore and upgrade public toilets and recreational parks under all local councils.
Social well-being within People’s Housing Projects (PPR) will also be nurtured through community-based initiatives, including **fire safety awareness campaigns and swimming and martial arts classes** for the elderly and children under the “Sukan Rakyat” programme.
To support first-time home ownership, the government is extending **full stamp duty exemptions** on transfer and loan agreements for homes priced up to RM500,000 until 31 December 2027.
In a bid to stabilise property prices and ensure local accessibility, the government proposes a **flat stamp duty rate of 4 to 8 percent** on residential property transactions involving foreign individuals and companies—excluding permanent residents.
Aligned with the 13th Malaysia Plan (RMK13), Anwar also encouraged financial institutions to participate in **rent-to-own schemes and build-then-sell models**, aimed at further easing access to homeownership.
For urban renewal, the government will offer a **special tax deduction of up to RM10 million** or 10 percent of eligible expenditure for the conversion of commercial buildings into residential use.
As part of its commitment to religious inclusivity, the government has allocated **RM50 million** to restore and maintain registered non-Muslim places of worship nationwide, including those in Sabah and Sarawak.
Taken together, these initiatives mark a significant push not only toward housing accessibility but also toward building inclusive, spiritually grounded, and socially connected urban communities under the ethos of MADANI. - October 10, 2025
