2026 Budget: Mah Sing pushes for HOC 3.0, tax relief, financing schemes to boost home ownership

New Straits Times

2 days ago

KUALA LUMPUR: Mah Sing Group Bhd is urging the government to introduce stronger housing incentives under 2026 Budget – including a new round of the Home Ownership Campaign (HOC 3.0), bigger tax reliefs, and innovative financing schemes – to help more Malaysians, especially first-time buyers, secure homes amid ongoing economic pressures.
Founder and group managing director Tan Sri Leong Hoy Kum said global economic volatility, trade tensions, inflation, and a higher cost of living have made property ownership increasingly difficult, particularly for young buyers.
Despite the challenges, demand for affordable homes remains strong because property is still viewed as a long-term, stable investment and a reliable hedge against inflation.
The right measures can lift public sentiment and give more rakyat the opportunity to own a home, Leong said in a statement.
Mah Sing's key proposal is to launch HOC 3.0 starting Jan 1, 2026, by combining the successful measures from the 2019 and 2020 campaigns. This would replace the current HOC 2.0, set to end on Dec 31, 2025.
Among the measures sought are a full stamp duty exemption on the Memorandum of Transfer (MOT) and loan agreements for first-time buyers purchasing properties priced up to RM1 million, compared with the current RM500,000 limit, and a mandatory 10 per cent discount on selling prices (for properties priced RM300,000 to RM1 million) offered by participating developers.
He is also calling for preferential mortgage rates and continued access to the Skim Jaminan Kredit Perumahan (SJKP).
Leong said these steps would cut upfront transaction costs, boost first-time buyer participation, and help reduce unsold inventories, sustaining momentum in the property sector.
He also proposed reintroducing the 5/95 financing scheme, or Developer Interest Bearing Scheme (DIBS), for first-time buyers only.
Under the plan, buyers would pay just 5 per cent upfront, with no loan repayments until project completion, reducing initial financial pressure.
"We propose reintroducing the scheme strictly for first-time homebuyers only, with bank loans tied to property valuation to avoid abuse and market speculation."
In addition, Leong is urging the government to increase mortgage interest tax relief to RM10,000 annually for three to five years and extend eligibility to properties priced up to RM1 million – up from the current RM7,000 cap with more restrictive property price limits.
"We believe these measures will significantly reduce upfront transaction costs and facilitate purchase by first-time homebuyers.
In addition, this encourages the sale of unsold inventories and supports the momentum of the property sector," he said.
He also welcomed the government's proposed Madani Deposit Scheme, which offers up to RM30,000 in subsidies for buyers aged 21 to 40, including gig workers, for homes up to RM500,000.
However, he urged swift rollout and recommended channelling the funds directly into loan accounts or down payments to strengthen buyer commitment and assist those without sufficient EPF savings.
To further ease housing prices, Mah Sing is calling for lower compliance costs and faster approvals for developers.
Proposals include reducing development charges, lowering land conversion premiums, and waiving utility contribution fees.
"Streamlining regulations and speeding up approval processes will assist developers in shortening project completion timelines and making homes more affordable and delivered faster to the rakyat," Leong said.