Madani Deposit, DIBS-like scheme should only be for controlled-price affordable housing, says REHDA

• The Madani Deposit could provide up to RM30,000 financial assistance for first-time homebuyers. The DIBS-like programme suggests that the developers cover the interest cost incurred during the construction period.

KUALA LUMPUR (Aug 26): The Real Estate and Housing Developers' Association Malaysia (REHDA) is of the view that the Madani Deposit and a programme akin to the Developer Interest Bearing Scheme (DIBS) should only be applied to controlled-price affordable housing.

Final details of the initiatives have yet to be released and REHDA opines that both the Madani Deposit and the DIBS-like scheme “can and should only be applied to controlled-price affordable housing and therefore will have no impact on the pricing of affordable housing”, stated REHDA in a media release today.

Last week, the Housing and Local Government Ministry (KPKT) submitted 33 initiatives, valued at nearly RM1 billion to the Finance Ministry for Budget 2025. The Madani Deposit, which is one of the initiatives, could provide up to RM30,000 financial assistance for first-time homebuyers.

Meanwhile, the DIBS-like programme suggests that the developers cover the interest cost incurred during the construction period.

“The scheme, akin to the previous Developer Interest Bearing Scheme but under a more restricted and controlled criteria, will enable purchasers to have more in their reserves to address any other financial concerns such as rental payment for their current residence,” stated REHDA.

The initiative also aims to ease the monthly payment commitment of first-time homebuyers, especially the youth in the B40 and M40 group.

“This initiative, if announced during the Budget presentation in October, will greatly assist more Malaysians to own homes, thus meeting the government’s own aspiration for every rakyat to have a place to live,” said REHDA president, Datuk Ir Ho Hon Sang (pictured) in the media statement.

He also added that the association welcomed the Madani Deposit initiative. “The 10% deposit has been a huge barrier to those without enough savings, or youngsters who have just started their career and putting down their roots. Whilst they are able to commit to the monthly repayments, the upfront 10% is a major challenge and REHDA supports any initiative to help Malaysians,” said Ho.

“We are hopeful for the 2025 Budget announcement to bring good news to the industry for the benefit of all Malaysians as well as the nation.”

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