Housing Policy in Malaysia

Skim Rumah
Pertamaku
(SRP)

Property
Price

- max. RM220,000
(for single applicants)
- max. RM400,000
(for joint-applicants)

Perumahan Rakyat
1Malaysia
(PR1MA)

Rumah Mesra
Rakyat
(RMR1M)

Program Rumah
Mampu Milik
(RMM)

RM68,000 onwards
RM120,000 - RM300,000 (depending on
location)

RM35,000 onwards
(depending on state)

Built-up

No restriction

800-1400sf
(3 bed, 2 bath)

700-866sf
(3 bed, 2 bath)

700sf onwards
(3 bed, 2 bath)

Income

- Not more than

RM3,000 (for single
applicants)
- Not more than
RM6,000 (for jointapplicants)

Household income not

more than RM6,000

Household income
not more than
RM3,000

Household income not

more than RM2,000

Age

35 years old or less

21 years old and above

18 - 65 years old

21 - 50 years old

- 100% financing
- 10% guaranteed by
Cagamas SRP
- 105% financing
Financing Berhad
- loan tenure max. 30
- loan tenure max. 40 years
years (not more than
65 years old)

Others

- First time home buyer

- First time home
- Property cannot be sold
buyer
or transferred to another
- Employees in
party within first 10 years
private sector
- Owner-occupied,
- Completed or under
subletting is not allowed
construction property
- Balloting system for
- Joint-applicants for
eligible applicants
husband and wife or
- Stamp duty to be
siblings only
waived

- 1/3 of loan to be
subsidized by
government
- 2/3 of loan at no
interest based on
To be confirmed
Qadrul-Hassan
concept
- Monthly installment
fixed at RM150

- Do not own a house

or staying in a wornout house
- Own a piece of land
- Married or single
parent family

- Do not own a house

or owning any
residential land
- House to be built by
Syarikat Perumahan
Negara Berhad
(SPNB)

Skim Rumah
Pertamaku
(SRP)

Unit

Location

Launch
Date

Perumahan Rakyat
1Malaysia
(PR1MA)

Rumah Mesra
Rakyat
(RMR1M)

Program Rumah
Mampu Milik
(RMM)

N/A

42,000 units by 2018

10,000 units per year N/A

No restriction

Klang Valley and

Seremban
- Putrajaya
- Cyberjaya
- Ara Damansara
(Petaling)
- Bandar Tun Razak
(Cheras)
- Putra Heights (Subang
Jaya)
Throughout Malaysia To be confirmed
- Bandar Bukit Raja
(Klang)
- Kota Elmina (Sg Buloh)
- Sg Besi (KL)
- Elmina East and Elmina
West (Shah Alam)
- Lagong Mas (Rawang)
- Bandar Ainsdale
(Seremban)
- Seremban Sentral.

August 2002 - Skim

Perumahan Keluarga
Nelayan
8 March 2011

4 July 2011

Low Cost Housing Policy

29 May 2011
September 2002 Program Rumah
Mesra Rakyat

Overview
Housing developers are required to build low cost housing in proportion to the total unit
scale of their development.
This is in line with the National Housing Policy, which aims to provide accessible, adequate,
affordable and quality housing for all Malaysians, particularly the low-income group.
In 1982, the Government imposed a 30% low-cost housing quota upon private sector
developers as a social obligation to complement Government efforts to provide affordable
housing. Housing projects exceeding 5 acres have to allocate at least 30% of houses as low
cost units. This is also in line with building developments with a balanced socio-economic
mix.
Under this policy, the number of units is allocated according to its price range namely low
cost, low-medium cost and medium cost.
In Malaysia, land matters come under the State jurisdiction. Therefore, the exact allocation
is determined by the respective States.
Although Malaysian private developers have achieved tremendous success in the provision
of low-cost housing, REHDA believes that the nation has moved on substantiallysocially
and economicallysuch that this responsibility can now fully revert back to the Government.
Bumiputera Housing
Overview
Housing developers in Malaysia are required to set aside at least 30% of their development
housing for the bumiputera, as well as provide a discount of 5 15%. This has been in
place since the introduction of the National Economic Policy in the 1970s, which was
implemented to balance out the socio-economic imbalances experienced by the bumiputera.
This policy was set in place to encourage more bumiputera to own houses and to promote
greater interaction among the various ethnic groups living in Malaysia.

The success of this policy in achieving a balance of socio-economic structure is obvious, 30

years down the road. The continued implementation of the policy has resulted in holding
costs and inefficiencies in the delivery system. Although lots allocated for bumiputera
ownership can be released to the open market upon approval by the State government, this
only marginally reduces the inefficiencies. REHDA is currently advocating that the country
move away from this requirement.
Selangor
bumiputera housing quota
For residential areas, the allocation is based on areas of State Constituencies (ADUN),
according to the Blueprint Perumahan Negeri Selangor Darul Ehsan (2004-2014) by
Lembaga Perumahan dan Hartanah Selangor (LPHS).
For commercial areas of less than 50 units, the proportion allocated depends on the
Lands and Mines Office. For commercial areas of more than 50 units, the allocation is
60% for low cost (Market Price of RM120,000) and 50% for other pricing.
For industrial areas less than 10 acres, 40% are allocated for bumiputera ownership. For
industrial more than 10 acres, an allocation of 50% of low cost (Market price of
RM150,000) and 40% for other pricing.
Discount
7% off market selling price for housing
10% off market price for commercial property (except low cost)
10% off market price for for industrial property
Endorsement on Title
The allocation is not endorsed on the title. Since 2005, bumi lots are marked for 6 months
from project launch.
Release of Allocation
Developers may apply for release of these lots when they have advertised their property at
LPHS for 3 months and were not able to have bumiputera buyers.

Contribution is given to the State Government for the release or reduction of the allocation
at the following rates:

Residential areas: 7% of the selling price per unit released

Commercial areas: 10% of the selling price per unit released

Industrial areas: 10% of the selling price per unit released