As Malaysia Prepare for the budget 2026, is ready to be ready in Parliament on Friday, the nation faces challenges in the property sector that requires immediate and decisive attention.
Increasing construction costs, regulatory barriers and shortage of labor are putting significant pressure on both developers and homebuilders, threatening the flexibility and strength of the housing market.
In the Trinity Group, we appreciate the government’s continuous attention on cheap homeowners and sustainable urban development. These are important preferences to ensure that Malaysian can reach quality homes from all areas of life to rich communities. However, to meet these goals, Budget 2026 must go ahead and introduce bold, targeted reforms that currently solve the structural challenges obstructing the property market.
An immediate step is the re -production of home ownership campaign with 100% stamp duty exemption on transfer of prices up to RM 1 million and loan agreements. For the first time coupled for buyers with 100% financing options, it will empower more Malaysian people to fulfill their homeowners dreams by injecting very important speeds in the property sector.
In addition, the minimum purchase price limit for foreign buyers of Stretta Properties in Selangore should be revised from RM 2 million to RM 1 million as per Kuala Lumpur policy.
Given that the two states share the same urbancharacteristics and market dynamics, aligning these thresholds will strengthen selangor’s competition, attract more foreign investment and stimulate more and more economic activities within the state’s property market.
Equally significant debt is improving access. The calculation of loan service ratio will provide more financial flexibility to modify the calculation of the loan service ratio from “net” to “gross” income and 70% loan-from price cap for third or subsequent housing loans. These adjustments will help homeowners navigate the options of financing in a way that reflects the ability to earn the real world.
In addition, banks should be allowed to consider informal income while assessing
Debt application. Many Malaysians earn through informal channels, yet their income is excluded, which reduces their housing debt eligibility. By identifying these income, financial institutions can expand access to credit and enable more Malaysians to enter the property market.
Strength can also be increased by reducing premiums on land conversions and growth charges. This measure will reduce overall costs for developers and translate into more affordable housing options, especially for low -income groups and first for buyers who are the weakest in today’s market.
To compete with lack of labor shortage to increase construction costs, we recommend intensifying approval for foreign labor intake in the construction sector. Stabilizing the workforce will help increase cost and ensure timely project distribution.
In addition, the incentive will help reduce the impact of increasing input costs by targeting the required construction material. This is a practical step for ordinary Malaysian people to keep housing prices within access.
Budget 2026 provides the Malaysia’s property market an opportunity to re -organize and strengthen with policies that promote flexibility, strength and inclusion. The Trinity Group is ready to work with the government and industry partners to feel these reforms.
Together, we can resume urban life and distribute innovative, accessible homes that meet the developed needs of Malaysian communities.
In doing this, we can help ensure that every Malaysian family has an opportunity to live in a quality home, which is an essential basis for the creation of vibrant and durable communities across the country.
To support this vision, it is equally important to solve structural challenges within the development ecosystem. The government should consider measures to reduce the upfront utility connection costs, contributing to utility companies and streaming premiums. At the same time, maintaining stability in land premium structures will help reduce the financial burden on developers.
In parallel, the more efficient and transparent approval mechanisms should be introduced to reduce red tape, enableing projects to progress more rapidly and ensure that the supply maintains coordination with demand.
This article has been contributed by the founder and managing director of Trinity Group, Datuk Neh So Kiet. (Picture),
