In line with Budget 2025, the Ministry of Housing and Local Government (KPKT) has introduced 11 crucial initiatives designed to uplift communities, enhance infrastructure, and address sustainability challenges across Malaysia.

Minister of Housing and Local Government, YB Nga Kor Ming said in Budget 2025, KPKT received a total allocation of RM5.934 billion, an increase of 5.08 per cent compared to this year’s budget.
By focusing on the needs of all citizens, KPKT is determined to create a future where no Malaysian is left behind. Let’s dive into these transformative initiatives and how they aim to shape Malaysia’s future.
1. Expanding Homeownership: Skim Jaminan Kredit Perumahan (SJKP)

Homeownership is a dream for many Malaysians, and KPKT is making that dream a reality. The Skim Jaminan Kredit Perumahan (SJKP), backed by RM10 billion, will help 20,000 Malaysians obtain home loans, regardless of their financial status. First-time homebuyers can enjoy a tax relief of up to RM7,000 on interest for homes priced under RM500,000 for three years. Homes priced between RM500,000 and RM750,000 will also receive tax relief of up to RM5,000, showcasing the government’s commitment to making homeownership more affordable.
2. Affordable Housing for All: Program Residensi Rakyat (PRR) and Rumah Mesra Rakyat (RMR)
Another important part of KPKT initiatives is allocating RM900 million to improve the quality of public housing through the Program Residensi Rakyat (PRR) and Rumah Mesra Rakyat (RMR). This funding covers 48 PRR programmes, 14 RMR projects, and three new projects, including 600 units in Port Dickson and Seberang Perai. The ceiling for new housing construction has been raised to RM90,000, and the ceiling for home repairs increased to RM20,000, ensuring rural communities can access better housing.
3. Upgrading Strata Housing: Replacing Aging Elevators

Public housing infrastructure improvements are also a priority, with RM185 million allocated for the maintenance and upgrading of low- and medium-cost strata housing. RM88.1 million is specifically set aside for replacing old and unsafe elevators, improving convenience and safety for residents in older housing developments.
4. Revitalising Public Markets: Boosting Local Economies
KPKT has allocated RM54.4 million to upgrade public markets and build new stalls, focusing on areas under local authorities. This initiative includes building markets in Kluang, Johor, and Kota Bharu, Kelantan, helping local traders access better facilities. Public markets serve as vital economic hubs, particularly for the B40 group, and KPKT hopes these upgrades will not only improve local commerce but also attract tourism.
5. Building Green Spaces: Taman Madani for Healthier Living

The government is investing RM100 million to develop or upgrade 100 Taman Madani, creating green spaces that provide urban and rural communities with areas for recreation. Public parks are key to promoting healthy lifestyles, and these spaces will include jogging tracks, playgrounds, and family-friendly areas. KPKT’s focus on creating sustainable, liveable cities for all Malaysians is central to this initiative.
6. Mitigating Flood Risks: Drainage Upgrades and Infrastructure Improvement
Floods are a constant threat in Malaysia, and KPKT is taking steps to address this. A budget of RM200 million has been allocated to upgrade drainage systems and clean up clogged drains in flood-prone areas. Of this amount, RM150 million will be used immediately to prepare for the monsoon season, demonstrating the government’s proactive approach to protecting homes and livelihoods from flood damage.
7. Empowering Malaysia’s Firefighters: The Bomba Gets a Boost
To support Malaysia’s firefighters, RM202.8 million has been set aside to upgrade the Bomba services, including building new fire stations and purchasing emergency vehicles. Six new fire stations will be constructed, and 231 new emergency vehicles will be purchased, ensuring the Bomba has the tools they need to respond effectively to emergencies across Malaysia.
8. Transforming Landfills: From Waste to Lestari Parks

Sustainability is a key focus of Budget 2025, and KPKT is leading the charge by transforming old landfill sites into Lestari Parks. With RM327.5 million allocated to waste management projects, sites in Krubong, Melaka, and Pontian, Johor, will be closed and converted into recreational spaces. These parks provide clean, green spaces for communities, turning former landfill sites into valuable community assets.
9. Promoting a Circular Economy: Incentives for Composting
KPKT is incentivising households to reduce food waste by offering tax relief for the purchase of composting machines until 2027. Among KPKT initiatives is to encourage more Malaysians to embrace sustainable practices at home, supporting efforts to reduce the nation’s carbon footprint. It aligns with global trends in promoting a circular economy, driving Malaysia toward a greener future.
10. Developing Smart Cities: Future-Proofing Urban Malaysia

KPKT is investing RM15 million to develop smart cities that integrate technology into city planning, improving efficiency and sustainability. Kuala Lumpur, which has climbed 16 spots in the Smart City Index, will lead the way in implementing smart technology for city management. This initiative ensures that Malaysian cities remain competitive, connected, and resilient in the face of future challenges.
11. Inclusivity in Action: Supporting Non-Muslim Religious Sites
Reflecting the government’s commitment to inclusivity, RM50 million has been allocated for the maintenance of non-Muslim places of worship, such as temples, churches, and gurdwaras. This funding ensures that all Malaysians, regardless of their faith, have access to well-maintained spiritual spaces, reinforcing the country’s values of unity and respect for diversity.
A Vision for Malaysia’s Future
Through these 11 key initiatives, KPKT is paving the way for a more inclusive, sustainable, and resilient Malaysia. From making affordable housing a reality to reimagining waste management and developing smart cities, Budget 2025 embodies a bold vision for the nation’s future. As Minister Nga Kor Ming said, “This budget isn’t just about constructing buildings; it’s about creating better lives for every Malaysian.”

Earlier this month, YB Nga Kor Ming launched Data Center Planning Guidelines (GPP Pusat Data) to simplify the planning and approval processes for data center projects across the country, enhancing Malaysia’s appeal as a regional data hub. With this initiative, Malaysia is positioning itself as a prime destination for data infrastructure investment, catering to the rapidly growing demand for data services globally. For more information, visit the official site here.
Also read:
Budget 2025 Commentary: Balancing Growth and Fiscal Responsibility
25 Highlights from Budget 2025: What Entrepreneurs Need to Know
KPKT Reports Solid Progress in First Half of 2024
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