Malaysia Introduces Tax Relief for First-Time Homebuyers

The Malaysian government has announced several measures aimed at boosting homeownership for first-time buyers in the 2025 Budget. Key initiatives include a tax relief of up to RM7,000 on loan interest payments for homes valued up to RM500,000, and up to RM5,000 for properties priced between RM500,001 and RM750,000, applicable for agreements signed from January 1, 2025, to December 31, 2027. Additionally, RM12.8 billion in guarantees has been approved to assist over 57,000 first-time homebuyers, with an extra RM10 billion allocated for future support. The budget also includes RM900 million for affordable housing projects, targeting low-income earners, and aims to construct new homes with increased subsidies for underserved communities. Prime Minister Anwar Ibrahim emphasized the government's commitment to making homeownership more attainable for all Malaysians, outlining comprehensive plans to address housing affordability. These measures are part of a broader federal budget of RM421 billion, marking significant financial commitments to enhance citizens' welfare and stimulate the housing market.