SHEDA advisor: Budget 2026 commendable, but fed govt should emulate S’wak’s housing deposit scheme

By DayakDaily Team

KUCHING, Oct 12: The federal government should consider introducing a Housing Deposit Assistance Scheme (HDAS) similar to Sarawak’s initiative to help first-time homebuyers overcome the financial hurdles of purchasing a house, says Dato Sim Kiang Chiok.

In a statement, the Sarawak Housing and Real Estate Developers’ Association (SHEDA) advisor said that while measures under Budget 2026, such as the extended stamp duty exemption for first-time homebuyers, are commendable, many young Malaysians still struggle to afford the initial deposit required to secure a home.

“The new flat stamp duty rate of four to eight per cent for residential properties purchased by non-citizens and foreign companies, while intended to control property price escalation, may not be timely given the current mixed outlook of the housing market,” he said.

He suggested that the federal government emulate Sarawak’s model, where the State provides financial assistance for home deposits, enabling more citizens to transition from renting to owning.

“A similar federal initiative to assist buyers with up to RM30,000 for homes priced up to RM500,000 would be a meaningful boost to those struggling with upfront payments. Such assistance would not only ease the financial entry barrier for young families but also spur demand in the affordable housing segment,” said Sim.

In addition, he said, the federal government could have further strengthened its housing agenda by reviving a national Home Ownership Campaign (HOC).

“Under such a programme, developers could offer special discounts, while the government could extend full stamp duty waivers on all legal documents for property transactions, not just limited to first-time buyers. This joint approach has proven effective in the past to stimulate property demand, reduce overhang units, and make homeownership more attainable.”

Regarding the government’s encouragement for financial institutions to support rent-to-own (RTO) and build-then-sell (BTS) housing schemes in line with the 13th Malaysia Plan (RMK13), Sim said that this policy direction is positive in principle.

“However, encouragement alone may not be sufficient. Without concrete incentives or regulatory frameworks, financial institutions are unlikely to participate actively in these alternative housing schemes, which require longer funding tenures, higher risk tolerance, and innovative financing models.

“The government could consider offering guarantee mechanisms, tax incentives, or shared-risk arrangements to make RTO and BTS schemes more viable and attractive to both developers and financiers,” he said.

Meanwhile, Sim, who also serves as the advisor to the Kuching Association of Talent Development and Welfare of Special Needs (KATSN), welcomed the government’s expanded support for persons with disabilities (OKU) and individuals with special needs, including those with autism.

“The establishment of the Autism Centre in Peninsular Malaysia, the extension of Private Pensioners Administrator (PPA) services to Labuan, Sabah, and Sarawak, and the allocation to benefit 13,000 handicapped and autistic families are meaningful steps forward,” he said.

Sim also lauded Prasarana’s provision of 100 wheelchair-accessible vehicles and the increase in tax relief from RM6,000 to RM10,000 for medical tests and early intervention programmes for children under 18.

“Overall, Budget 2026 reflects a sincere effort by the government to balance national development, social welfare, and housing affordability. With stronger implementation, equitable distribution, and enhanced collaboration with state governments, these measures can bring real improvements to the lives of Malaysians—especially those in Sarawak and Sabah, and families with special needs.” — DayakDaily

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