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Penang Rolls Out MADANI Property Policy With Incentives To Spur Market Growth
The Penang state government has launched the MADANI Property Policy, a bold initiative aimed at revitalising the property market while promoting inclusivity and affordability.
The policy, introduced under the MADANI Home Ownership Campaign (MOC), combines targeted buyer incentives, developer-friendly reforms and new affordable housing tiers to stimulate growth in the state's real estate sector.
Announcing the policy, State Housing and Environment Committee chairman Datuk Seri S Sundarajoo said the campaign will run from June 1, 2025, to May 31, 2026, and is expected to drive higher homeownership rates while encouraging the approval of strategic developments.
A key feature of the initiative is a 5% discount for Indian Muslim buyers purchasing residential or commercial units during the campaign period, a move aimed at increasing participation from underrepresented communities.
The policy also introduces a new affordable housing category, Rumah MutiaraKu Type D (RMKu D), capped at RM400,000 and targeted at households earning up to RM15,000 per month. RMKu D units cannot be resold on the open market or used to meet mandatory affordable housing quotas, underscoring the state's intention to maintain affordability for genuine buyers.
Developers, meanwhile, will benefit from reduced contribution rates if they opt not to build RMKu Type A or B units: From RM120,000 to RM100,000 in Penang Island City Council areas
From RM120,000 to RM72,500 in Seberang Perai City Council areas
Meanwhile, Sundarajoo also announced that developers who fall short of affordable housing unit quotas may now receive waivers on related sale or purchase charges.
'They may also be exempt from social impact assessment reports under specific conditions, streamlining the approval process and cutting compliance costs,' he said.
Sundarajoo noted that the reforms are designed to create a more competitive, sustainable and inclusive property ecosystem in Penang.
'This policy reflects our commitment to both homebuyers and industry stakeholders. We will continue to engage with the public and private sectors to refine and update these guidelines,' he said.
The MOC follows a string of state-led initiatives, including the Penang Home Ownership Campaign (HOC) and the State Property Sector Stimulus Policy, with the HOC 3.0 PLUS ended in December 2024. Related
