PETALING JAYA: The increased allocation for the Housing and Local Government Ministry underscored its role in spearheading government policies to enhance the living standards and quality of life for Malaysians, says Nga Kor Ming (pic).
The Housing and Local Government Minister said the RM5.934bil allocation in Budget 2025, is a 5.08% increase (RM287.4mil) from the RM5.647bil in 2024.
Lauding the Budget 2025 as "impressive, progressive, inclusive and sustainable", he said the budget was aligned with the Madani economy framework, noting its potential to reduce the fiscal deficit from 6% in 2022 to 3.8% next year amidst fiscal challenges and regional conflicts.
"The budget's reforms are also expected to enhance government revenue by reducing leakages and wastage," he said on Friday (Oct 18).
Highlighting the necessity of reforms, Nga said the targeted subsidy plan for RON95 fuel would help save RM8bil for national development.
"Moreover, the budget dedicates RM15.9bil to social safety nets, assisting the hardcore poor, B40 and M40 groups.
"The lowest income families will receive RM13,000 in financial aid, marking the highest social welfare allocation in history, This shows the Madani government's commitment to its people.
"We are grateful that 14 of our financial initiatives have been approved," Nga said, specifically mentioning the RM200mil for maintaining low-cost public housing, RM289mil for constructing and upgrading markets, RM100mil for Madani recreational parks, and nearly RM1bil allocated for social and affordable housing.
In a statement, Nga said the significant allocation was a testament to the trust and confidence of the Madani government in the ministry to continue empowering the agenda for public well-being and a sustainable environment.
The Budget 2025 allocation focuses on five key sectors for the ministry: housing, local government, urban sustainability and community well-being, firefighting services and the circular economy.
It outlines 13 initiatives poised to address pressing issues and drive development.
Among the highlights are RM10bil for the Housing Credit Guarantee Scheme (SJKP) and step-up financing; RM900mil for projects under the People's Residency Program (PRR) and Rumah Mesra Rakyat (RMR), including two new developments in Port Dickson and Seberang Prai Tengah; an increase in the ceiling for new home assistance to RM90,000 and up to RM20,000 for home repairs; and RM200mil for the maintenance of low- and medium-cost public strata housing, focusing on replacing outdated elevators.
Others included tax relief on home loan interest for properties priced up to RM750,000, valid from Jan 1, 2025, to Dec 31, 2027; RM100mil to build and repair market stalls and infrastructure across local authority areas; and RM150mil for cleaning and upgrading drainage systems in local authority areas.
A total of RM84mil has been allocated to enhance basic and social facilities in Chinese New Villages, with the ministry coordinating needs in Indian settlements; RM50mil to repairs and maintenance of registered non-Muslim places of worship; and RM100mil for upgrading 48 Madani public parks across the nation.
Besides, RM1.8bil has been allocated for building and maintaining civil servant quarters, including those of the Fire and Rescue Department; extended social protection for all civil servants and the ex-gratia disaster scheme for Bomba personnel; and promotion of the circular economy through tax incentives or sponsorship for household composting machines and smart AI-driven reverse vending machines until 2027.
