Budget 2027: KPKT gets RM6.355b for housing, local infrastructure

Malaysia's Ministry of Housing and Local Government (KPKT) has been allocated RM6.355 billion under Budget 2027, up 4.38% from 2026. The funds will support housing programmes, local government upgrades, community facilities and fire services, including RM1 billion for affordable housing and stamp du

PETALING JAYA (Oct 12): The Ministry of Housing and Local Government (KPKT) has been allocated RM6.355 billion under Budget 2027 to strengthen housing programmes, local government services, community facilities and fire service readiness. The allocation is 4.38%, or RM266.74 million, higher than in 2026, the ministry said in a statement on Friday (Oct 9).

Housing and Local Government Minister Nga Kor Ming said the ministry's priority was to ensure every ringgit spent delivered direct benefits through safer and more comfortable housing, better public amenities and more efficient local authority services. The initiatives span four sectors, following the tabling of Budget 2027 by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim.

For housing, RM1 billion has been earmarked for Rumah Mesra Rakyat (RMR) and Program Residensi Rakyat (PRR). KPKT identified four locations for new housing projects: Kulai, Johor; Nilai, Negeri Sembilan; Paya Rumput, Melaka; and Lembah Pertang. The ministry also highlighted up to RM20 billion in housing financing guarantees through Syarikat Jaminan Kredit Perumahan (SJKP), aimed at helping 80,000 first-time homebuyers, particularly self-employed people without fixed incomes.

Under the proposed stamp duty measures, first-time buyers of homes priced up to RM500,000 would receive full exemptions on loan agreements and instruments of transfer. For homes priced above RM500,000 and up to RM750,000, the proposed relief comprises a full exemption on the first RM500,000 and a 50% exemption on the remaining amount. The relief is proposed for sale and purchase agreements executed from Jan 1, 2027 to Dec 31, 2030, subject to relevant implementing provisions taking effect.

To support the revival of abandoned housing projects, the Budget proposes full stamp duty exemptions on loan agreements and instruments of transfer executed by rescue contractors or developers, as well as original buyers, during the same four-year period. KPKT said the measure supports the government's target of eliminating abandoned housing projects by 2030. The ministry also highlighted Bandar MADANI Bukit Jalil, where Perbadanan PR1MA Malaysia is developing an integrated residential area with amenities including a vertical school.

For local government infrastructure, RM700 million has been allocated for small projects in local authority areas, including upgrades to parks, public toilets and stalls. This includes building Gerai MADANI stalls and redeveloping Kompleks Penjaja Jalan Chui Yin in Bentong, Pahang; Pasar Buntong in Ipoh, Perak; and the Hill Trace hawker site in George Town, Penang. A further RM320 million will fund repairs and upgrades to slopes, drains and drainage channels in local authority areas nationwide.

Community initiatives include RM100 million to repair and rebuild ageing infrastructure in Chinese new villages, and RM80 million to upgrade and maintain registered non-Muslim places of worship. KPKT's statement also listed RM2.3 billion for the construction and maintenance of quarters for firefighters, police personnel, doctors, military personnel and teachers, and RM339 million for allowances for RELA members, auxiliary firefighters, police volunteers and civil defence volunteers. Hourly rates are to rise to RM9 for volunteers and RM10.80 for supervisors, benefiting nearly 50,000 volunteers.

To support the revival of abandoned housing projects, the Budget proposes full stamp duty exemptions on loan agreements and instruments of transfer executed by rescue contractors or developers, as well as original buyers, during the period from Jan 1, 2027 to Dec 31, 2030. KPKT said the measure supports the government's target of eliminating abandoned housing projects by 2030.

For local government infrastructure, RM700 million has been allocated for small projects in local authority areas, including upgrades to parks, public toilets and stalls. Work includes building Gerai MADANI stalls and redeveloping Kompleks Penjaja Jalan Chui Yin in Bentong, Pahang; Pasar Buntong in Ipoh, Perak; and the Hill Trace hawker site in George Town, Penang. A further RM320 million will fund repairs and upgrades to slopes, drains and drainage channels nationwide.

Community initiatives include RM100 million to repair and rebuild ageing infrastructure in Chinese new villages, and RM80 million to upgrade and maintain registered non-Muslim places of worship. KPKT's statement also listed RM2.3 billion for the construction and maintenance of quarters for firefighters, police personnel, doctors, military personnel and teachers, and RM339 million for allowances for RELA members, auxiliary firefighters, police volunteers and civil defence volunteers. Hourly rates are to rise to RM9 for volunteers and RM10.80 for supervisors, benefiting nearly 50,000 volunteers.

The ministry also highlighted Bandar MADANI Bukit Jalil, where Perbadanan PR1MA Malaysia is developing an integrated residential area with amenities including a vertical school. For local government infrastructure, RM700 million has been allocated for small projects in local authority areas, including upgrades to parks, public toilets and stalls, plus RM320 million for repairs to slopes, drains and drainage channels. Community initiatives include RM100 million for ageing infrastructure in Chinese new villages and RM80 million for non-Muslim places of worship.

KPKT's statement also listed RM2.3 billion for the construction and maintenance of quarters for firefighters, police personnel, doctors, military personnel and teachers, and RM339 million for allowances for RELA members, auxiliary firefighters, police volunteers and civil defence volunteers. Hourly rates are to rise to RM9 for volunteers and RM10.80 for supervisors, benefiting nearly 50,000 volunteers.

The ministry said it would focus on efficient implementation of the initiatives, in line with the Ekonomi MADANI framework and the 13th Malaysia Plan.