New Malaysia Budget 2023 : Real Estate-Related Highlights

With the announcement of the new Malaysian Government, the revised Budget 2023 has been tabled on 24 February 2023.

YAB Dato’ Seri Anwar bin Ibrahim, Malaysia’s 10th Prime Minister and Minister of Finance presented the Budget 2023 in the Dewan Rakyat after being elected in Government in the 15th Malaysian General Election.

Latest Budget 2023 Highlights

Real estate-related

1. SJKP provision for borrowers without fixed income

Through Syarikat Jaminan Kredit Perumahan (SJKP), borrowers without fixed income are given a guarantee of up to RM5 billion in loan value.

2. Allocations for PPR projects

The government has provided allocations for PPR projects as follows:

• An allocation of RM50 million to replace worn out lifts, with a quotation limit for procurement of elevator maintenance and repair work increased to RM1.2 million instead of RM500,000
• RM15 million to support NGO efforts to hold remedial classes for children who are still dropping out of learning
• RM30 million provided to intensify people’s economic activities such as food companies using the Cloud Kitchen platform under the supervision of Yayasan Hasanah
• Providing internet access to community areas and internet facilities to 40 thousand PPR units, with free internet for 56 selected PPRs
• RM367 million allocated for upcoming PPR projects, benefiting 12,400 potential new residents

3. Development allocations for Sabah and Sarawak

The states of Sabah and Sarawak are to receive development allocations of RM6.5 billion and RM5.6 billion respectively for the development of cities bordering Kalimantan, Indonesia as a step to continue moving the capital of Indonesia to Kalimantan.

This allocation is also provided to in an effort to continue and speed up the implementation of the Pan Borneo Sabah highway and the Sarawak-Sabah Link Road, estimated to involve a total cost of RM20 billion with a length of more than 1,000 kilometers.

4. Development projects

The government also plans to bring forth the following developments as further measures for the economy:

• Johor to become a special financial zone, with a competitive remuneration package to attract international investors and knowledge workers to settle in Malaysia
• Sanglang Port development project in Perlis to handle petroleum cargo and bulk cargo that will add value to the Perlis economy, including the development of a new coastal erosion structure between Kuala Sanglang, Perlis to Kuala Jerlun Kubang Pasu, Kedah
• Proposed development of the main port on Carey Island to support development of international trade, making Port Klang port the main hub for the Southeast Asian region

Originally published on IQI Global.