Rehda applauds revamped budget, expresses concerns over materials price issue

• “We reiterate that should the issue be left idle for too long it will have an adverse impact on house prices in the open market.”

The  Real Estate and Housing Developers’ Association (Rehda) Malaysia supports the revamped Budget 2023 tabled today, which includes the measures aiming to assist the rakyat, while ensuring an inclusive and sustainable economic growth, its president Datuk NK Tong (pictured) said.

Prime Minister Datuk Seri Anwar Ibrahim today tabled Budget 2023, with a total allocation of RM388.1 billion, with RM289.1 billion for operating expenditure, RM99 billion for development expenditure, including RM2 billion for contingency savings.

In the announcement, Anwar noted that 12,400 units under Program Perumahan Rakyat (PPR) and 4,250 units of Rumah Mesra Rakyat under Syarikat Perumahan Negara Bhd (SPNB) will be implemented, with allocations of RM367 million and RM358 million, respectively.

Tong said while Rehda applaud the endeavours, it remains concerned that pressing issues such as the continuous increase of building materials prices are not addressed.

“We reiterate that should the issue be left idle for too long it will have an adverse impact on house prices in the open market,” he said. 

Nonetheless, he said, Rehda will continue its engagements with all relevant industry players, including the government, to hopefully find a solution to this issue in the near future.

Tong said that the approach taken by the government may seem bold and aggressive, but is in fact prudent given the concerns of slower global growth for 2023.

“We are hopeful that some of the measures announced towards alleviating the burden of the less privileged will help them navigate their day-to-day life amidst the high cost of living, especially in urban areas,” he said.

Additionally, the association lauds the move by the government to increase Syarikat Jaminan Kredit Perumahan (SJKP) allocation to RM5 billion, which is expected to benefit 20,000 borrowers without fixed income.

He said this will surely increase the ability for more Malaysians to buy a home which will further improve their quality of life.

“As we reiterate our pledge to continue with our nation-building role of providing quality and affordable homes for the rakyat while providing employment to the 180 upstream and downstream industries, we hope the government will continue to give their full support to the industry,” Tong added.