2017 Budget: Here’s What You Need To Know

On October 21, the Prime Minister Datuk Seri Najib Tun Razak has outlined the most anticipated 2017 Budget proposals.

The 2017 Budget allocates a sum of RM260.8bil, an increase of 3.4% from the 2016 Budget Recalibration. Some policies of interest affect a wide variety of factors, such as development in neighbourhoods, accessibility, housing, financing, energy sustainability, tourism and connectivity infrastructure.

Check out below for some of the highlights of 2017 Budget that relates to the property sector:

First-time homebuyers

• Provide Government’s vacant lands at strategic locations to Government-Linked Companies (GLC) and Perumahan Rakyat 1Malaysia (PR1MA) to build more than 30,000 houses with the selling price ranging between RM150,000 and RM300,000.
• To build around 10,000 houses in urban areas for rental to eligible youths.
• To build 5,000 units of People’s Friendly Home (PMR) with the Government subsiding up to RM20,000 per unit. For this purpose, RM200mil will be allocated to Syarikat Perumahan Negara Berhad (SPNB).
• A new special “step-up” end-financing scheme for the PR1MA programme that offers total loan up to 90% to 100% with loan rejection rate to be reduced drastically.
• Stamp duty exemption increased to 100% on instruments of transfer and housing loan instruments for houses with value of RM300,00 and below.

People’s Housing Programme (PPR)

• A total of 11,250 PPR houses are being built with an allocation of RM576mil, which will be sold between RM35,000 and RM42,000.
• An allocation of RM300mil to repair facilities at flats and 113 PPR in urban and suburban areas.
• The Ministry of Urban Wellbeing, Housing and Local Government (KPKT) will build 9,850 houses under PPR with the allocation of RM134mil.

MyBeautiful New Home

• A new programme under National Blue Ocean Strategy (NBOS) initiative, especially for the B40 throughout the country with an allocation of RM200mil.
• At the initial stage, a total of 5,000 units will be built with prices ranging from RM40,000 to RM50,000 per unit.
• The government will finance RM20,000, while the remaining will be paid as instalments by each owner.

Infrastructure

• Kelana Jaya and Ampang LRT lines commenced operations in June 2016.
• Sungai Buloh - Kajang MRT line will operate in December 2016.
• Implementation of the new East Coast Rail Line project connecting Klang Valley to the East Coast. With an estimated cot of RM55bil, the 600km rail will connect townships such as Port Klang, ITT Gombak, Bentong, Mentakab, Kuantan, Kemamam, Kerteh, Kuala Terengganu, Kota Bharu and ends in Tumpat.
• Increase the trip frequency of ETS for the Johor Bahru - Padang Besar route, involving procurement of nine train sets till 2019. In addition, with an overall allocation of RM1.1bil, 10 more new traiin sets will be purchased in stages up to 2019.
• Accelerating the implementation of Pan Borneo Highway in Sabah and Sarawak.
• An allocation of RM100mil to restore the East Coast railway line along Gua Musang - Tumpat.
• A total of 97,000 street lights and 3,000 LED lights will be installed at crossroads in 7,500 villages, including Sabah and Sarawak.
• A total of 616km village roads and bridges will be built and upgraded with an allocation of RM1.2bil to enhance the connectivity of villages, towns and cities.
• A total of RM4.6bil is allocated to all states under the Malaysian Road Records Information System (MARRIS) to maintain state roads.
• An allocation of RM460mil to provide electricity supply in rural areas in approximately 10,000 houses.