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15 Government Housing Schemes Available For B40 And M40 Groups


They say that “there’s no place like home”. However, some feel that owning a comfortable house is an elusive dream for those in the B40 and M40 categories. But is this true? Maybe you just haven’t discovered the current housing schemes and home-buying incentives available for you!

© faidzzainal/ GettyImages

Moving into a property and calling it home is a goal for everyone. However, if you happen to belong in the B40 or M40 category, affording to own one might be difficult.

Luckily, there are a few housing schemes and home-buying incentives aimed at assisting those in the mentioned income groups.

Which Income Group Do I Belong To?

Malaysians are classified into three groups according to their median household income. The data is taken from the Department of Statistic’s (DOSM) Household Income and Basic Amenities Survey 2019. The three groups are as the following:

  • T20 
    • The household income is among the Top 20%.
    • Also known as the Upper Class and has a median income of RM15,301 per month.
    • The T20 group earns RM10,960 and above.
  • M40

    • The household income is among the Middle 40%.
    • Also known as the Middle Class and has a median income of RM7,093 per month.
    • The M40 group earns between RM4,850 to RM10,959.
  • B40

    • The household income is among the Bottom 40%.
    • Also known as the low-income group and has a median income of RM3,166 per month.
    • The income threshold for B40 is below RM4,849.

READ MORE: Income Classification in Malaysia: What is B40, M40, and T20

What other factors should I consider? 

The classifications of the income groups are based on statistics at a national level. They are used by the government when handing out incentives.

However, national averages can obscure the very diverse realities that different Malaysian households live in. Instead, we should include geography when we analyse income differences.

At the state level, Kuala Lumpur recorded the highest median income with RM10,549 followed by Putrajaya (RM9,983), Selangor (RM8,210), Labuan (RM6,726), Johor (RM6,427), Penang (RM6,169) and Melaka (RM6,054).

Putrajaya had the highest compounded annual growth rate of median income at 6.3% over the period of 2016 to 2019, higher than the national median growth rate of 3.9%.

Eight other states that also exceeded the national median growth rate were Terengganu (5.6%), Kuala Lumpur (5.0%), Kelantan (4.9%), Penang (4.4%), Johor (4.3%), Selangor (4.3%), Labuan (4.2%) and Kedah (4.2%).

The Gross Domestic Product (GDP) for each state in Malaysia is different, even though they belong in the same income group. A report by Khazanah Research Institute entitled “The State of Households 2018: Different Realities” managed to find much more nuance in the experiences of Malaysian households based on location.

For example, they found that a household in Kelantan that earned just above RM5,870 is in the state’s T20 group. However, the same amount of household income would be part of the M40 nationally, and in fact, be in the B40 if they lived in Kuala Lumpur.

In another example, the income threshold for a B40 household in Putrajaya is RM 6,447 but it is only RM 2,348 in Kelantan. That’s a difference of 63.6% or RM 4,099!

The reality is that household income in places such as Kuala Lumpur, Selangor, and Johor is higher because there are higher economic activities in these areas. You may download the full report here.

READ: (Updated) How much should the average Malaysian household income be to afford a home in Klang Valley?

What Are The Available Home Buying Incentives And Financing Schemes In Malaysia? 


1) Keluarga Malaysia Home Ownership Initiative (i-MILIKI)

The government launched i-MILIKI in July 2022. Under this initiative, first-time homebuyers will receive stamp duty exemption for:

  • Property priced RM500,000 and below – First-time homebuyers receive 100% stamp duty exemption
  • Property priced between RM500,000 and RM1 million – First-time home buyers receive a 75% stamp duty exemption (this was increased from 50% to 75% in Budget 2023)

The stamp duty exemption will apply to instruments of transfers and loan agreements for the purchase for sale and purchase agreements (SPAs) entered from 1 June 2022 to 31 December 2023.

i-MILIKI serves as the continuation of previous incentives to increase home ownership among Malaysians, such as the Home Ownership Campaign (HOC) that ended in December 2021.

2) Stamp Duty Exemption Announced In Budget 2021

In Budget 2021, the Malaysian government has announced that first time homebuyers purchasing a residential home that’s priced up to RM500,000 (previously RM300,000) will be entitled for a full stamp duty exemption on the instruments of transfer and loan agreements for the purchase.

These stamp duty exemptions are applicable for SPAs executed between 1 January 2021 and 31 December 2025.

To be eligible for this, the individual must not own any residential property before this, including those obtained by way of inheritance or gift and held either individually or jointly.

3) Skim Rumah Pertamaku (SRP)

Skim Rumah Pertamaku or My First Home Scheme was first announced in the 2011 Budget.

This scheme allows eligible first-time buyers to secure loan financing of up to 110% of the price of a property. This means homeownership without the need for a substantial down payment.

In 2022, the Government launched the Malaysia Housing Financing Scheme (i-Biaya) where SRP is listed as one of the financing schemes offered to assist low-income families to own a home.

i-Biaya is one of the components under the Home Ownership Programme (HOPE) which focuses on the housing ecosystem including the provision of homes.

The eligibility criteria for My First Home Scheme is below, as listed in SRP’s website.

Eligible Applicants  – Must be a Malaysian citizen
– First-time homebuyer
– Salaried worker or self-employed individuals
– Single or joint applicants. Joint applicants could be spouse, parents, children or siblings (living together in the new property).
– Persons who’ve inherited a residential property does not fall under the category of first-time home buyer
– Gross monthly household income up to RM10,000 for single/joint applicants
– No record of impaired financing for the past 12 months
– Financing up to 110%*
*Note: Financing of more than 100% and up to 110% is only for applicants with household income of RM5,000 and below that are purchasing a property worth RM300,000 and below.  
Eligible Properties  – Residential properties in the primary and secondary market located in Malaysia
– Maximum property value of RM500,000
– Owner-occupied (buyers are required to reside in the property)
– Does not cover home construction under own land
– Title of the property must not be Native Area Land, Native Customary Land, or Interior Area Land in Sarawak
Financing Requirements  – Financing tenure not exceeding 35 years, subject to applicant’s age not exceeding 70 years at the end of financing tenure
– Amortising facility only (no redrawable features)
– Compulsory fire insurance/takafulFor purchase of property priced up to RM300,000 and for applicants with gross monthly household income of not more than RM5,000
– Mandatory to complete the online financial education module provided by the Agensi Kaunseling Dan Pengurusan Kredit (AKPK) which can be accessed from AKPK’s RumahKu portal
– Moratorium period of 5 years
– For properties under construction, the financing tenure commence from the date the financing amount has been fully disbursed
– Legal fees may be a part of the financing depending on participating bank’s discretion

As of 13 October 2022, there are 25 banks participating in the My First Home Scheme, offering both conventional and Islamic financing facilities. The full list of banks are listed on SRP’s website.

Participating banks in the My First Home Scheme
© My First Home Scheme/Skim Rumah Pertamaku

4) Housing Credit Guarantee Scheme (HCGS)

Syarikat Jaminan Kredit Perumahan Berhad is a wholly-owned company of the Ministry of Finance Incorporated. It was established in December 2007 to provide the Housing Credit Guarantee Scheme, or Skim Jaminan Kredit Perumahan (SJKP) to several groups.

This scheme assists particularly the first-time homebuyers who do not have steady income such as gig and freelance workers, independent business owners, and small traders or entrepreneurs, to obtain mortgage financing of up to 100% from selected financial institutions.

Under Budget 2022, the government announced an additional RM2 billion guarantee for the scheme, which was expected to benefit 5,000 to 6,000 targeted households.

And under Budget 2023, the government has set aside another RM3 billion for the scheme and this is expected to benefit 12,000 borrowers.

Eligibility criteria of HCGS

  • Malaysian citizens aged 18 years and above. Joint financing is allowed.
  • Must be owner-occupied
  • For purchase of first newly completed or under construction or sub-sale or auctioned residential property under low or medium or affordable category
  • Minimum monthly gross income of RM1,000
  • The total repayment of all applicant’s loans does not exceed 65% of gross monthly income
  • Not more than 2 months of arrears in CCRIS, within a period of 12 months
  • No other delinquent credit records within the last 24 months

READ: ‘Blacklisted’ For Bad CCRIS/CTOS? Here’s 4 Tips To Get A Home Loan In Malaysia

Key features of HCGS

Purpose of FinancingHome loan financing. HCGS is specifically for the purchase of residential houses only.  
Financing LimitUp to RM400,000, including principal financing amount, Mortgage Reducing Term Assurance (MRTA) / Mortgage Reducing Term Takaful (MRTT), Long Term House Owner’s Takaful (LTHO), solicitor’s fee and valuation fee
Facility TypeTerm Loan / Term Financing
Financing TenureUp to 35 years or until the borrower reaches the age of 65, whichever is earlier. It would also depend on the terms stipulated by the financial institutions.  
A two-generation loan can be made to extend the repayment period. It is determined based on the child’s age, with the condition that the child’s age should be at least 18 years on the application date.
However, this would depend on the specific terms stipulated by the financial institution.
Guarantee Coverage100% guarantee of the principal financing amount obtained from participating financial institutions, including Mortgage Reducing Term Assurance (MRTA) / Mortgage Reducing Term Takaful (MRTT), Long Term House Owner’s Takaful (LTHO), solicitor’s fee and valuation fee
Interest/ Profit RateAs determined by participating financial institutions
DepositMandatory deposit equivalent to 3 months monthly instalment
© Housing Credit Guarantee Scheme/Skim Jaminan Kredit Perumahan

Other participating financial institutions

  • Affin Bank Berhad
  • Affin Islamic Bank Berhad
  • Alliance Bank Malaysia Berhad
  • Alliance Islamic Bank Malaysia Berhad
  • AmBank (M) Berhad
  • AmBank Islamic Berhad
  • Hong Leong Bank Berhad
  • Hong Leong Islamic Bank Berhad
  • Malayan Banking Berhad
  • Maybank Islamic Berhad

What Are The Available Affordable Housing Schemes For The B40 And M40 Groups?

If you belong in the B40 or M40 category, the following affordable housing schemes are meant to assist you in owning your own home.

Want to you where and how to apply government house in Malaysia? Here’s at least 15 housing schemes that you can leverage on in Malaysia.

1) Youth Transit Housing (MyTransit)

Another scheme under the Ministry of Housing and Local Government (KPKT) is the Youth Transit Housing (MyTransit)

Its main focus is to provide housing for B40 youth. Instead of for purchase, the properties here are only for rent. Rental would be 20% to 30% lower than the market rate.

According to KPKT, there will be 7,448 units of Youth Transit Housing to be built in Selangor and Kuala Lumpur, and they will be equipped with basic facilities.

Interestingly, there’s also a “forced savings” element. This means that a percentage of the monthly rental will be set aside and returned to the tenant as a lump-sum after their maximum stay.

Here are key highlights for MyTransit:

  • The rental rate per unit is 20% to 30% lower than the market price
  • Unit types: 450 sq ft studio units, 550 sq ft 2-bedroom apartment units, 900 sq ft 3-bedroom apartment units
  • Developments will include WiFi, shoplots, gymnasium and self-service laundry
  • Can be rented for a maximum of 5 years

2) Rent-to-Own (RTO) Schemes

Announced during Budget 2020, the Rent-to-Own-Scheme (RTO) caters to aspiring homeowners who find it difficult to come up with the initial 10% down payment.

The RTO scheme allows first-time home buyers to lease a property first, and followed by the option to purchase it at the end of the lease. The lease is a contract between the developer and the potential buyer. Once the buyer signs the lease agreement, he/she is bound to the contract for the entire lease period.

The duration for some properties could be five years, while it could be 20 years for others. At the end of this contract, you can exercise the option to purchase the property. Hence, the term “rent-to-own”.

Buyers will be able to lock in the property purchase price based on the current selling price. This is a huge advantage for first-time homebuyers because if the price goes down, they can decide not to buy. But if the price goes up, it’s a win for the buyer!

Key features of RTO:

  • Applicable only for properties up to RM500,000
  • Depending on the scheme, the RTO lease duration differs and could vary from 12 months to five years, or even longer.

There are many institutions and organisations that provide Rent-To-Own scheme or similar. The more well-known Rent-To-Own schemes in Malaysia include Maybank HouzKEY, PR1MA Rent-To-Own, Skim Smart Sewa to Ownership (2STAY) by Rumah Selangorku, and Skim Sewa Untuk Dimiliki (RTO) PPR.

3) PR1MA

PR1MA is an affordable housing scheme under the PR1MA Act 2012. It is introduced for affordable developments in key strategic urban areas nationwide.

The purpose is to develop and maintain high-quality, affordable houses, as well as to help Malaysians, especially the younger generations to own their first homes.

PR1MA homes are contemporary, modern and ideal for first-time homebuyers. They are priced between RM100,000 to RM400,000 and are available in various sizes and layouts.

Here are the eligibility for PR1MA applicants’

  • A Malaysian citizen
  • An individual or combined (husband & wife) gross household income between RM2,500 and RM15,000 per month
  • Single or married, age 21 and above
  • You or your spouse must not own more than one property
  • PR1MA homes must be owner-occupied. No sub-letting will be allowed.
  • Selection of successful homeowners and allocations of PR1MA house units will be carried out through an open balloting process for newly launched developments
  • Additional state guidelines may apply

In addition to that, the application is completely FREE of charge. There’s no fee charged for signing up and a lawyer fee isn’t required. The application can be made online or visit any PR1MA offices and sales galleries.

The government also announced in March 2022 that those without payslips can now apply for the Perbadanan Pr1ma Malaysia Berhad (PR1MA) housing loan.

End-financing for PR1MA buyers

  • Participating financial institutions includes Maybank, Bank Rakyat, Bank Simpanan Nasional, Bank Islam, RHB Bank, Ambank, Affin Bank, CIMB Bank, Hong Leong Bank and Public Bank
  • Packages include financing of up to 110% of the purchase price in the Sale and Purchase Agreement for eligible buyers
  • No down payment is required if you’re able to secure a maximum loan
  • Service the interest during construction, and commence instalment only upon completion of the property
  • Final terms and conditions are subject to the bank’s approval

4) Program Perumahan Rakyat (PPR)

PPR, or People’s Housing Project is an initiative by the Malaysian government to provide income earners under the B40 category to find a home and eradicate squatter areas in Malaysia.

There are:

Check out the full list of projects under PPR here.

Upon clicking on ‘Semua Skim’, choose either ‘PPR Dimiliki’ or ‘PPR Disewa’, and click on the ‘Cari’ button.

Basic eligibility criteria:

  • Malaysian citizen
  • 18 years old and above
  • Total household income: Less than RM 3,000 per month
  • Do not own a property

Unit sizes will range from 650 sq ft to 900 sq ft. You may apply for PPR here:

In February 2022, it was reported that new components will be adopted in the implementation of the PPR as the government strives towards “Liveable Malaysia” agenda.

5) Residensi Wilayah Keluarga Malaysia (RUMAWIP)

Formerly known as RUMAWIP, Residensi Wilayah Keluarga Malaysia is the affordable housing programme by the government to help lower and middle-income groups to be a first-time homebuyer. 

Also targeting first-time homebuyers, a total of 80,000 units of RUMAWIP homes are expected to be built in Kuala Lumpur, Putrajaya, and Labuan.


  • Must be a Malaysian citizen, at least 21 years old.
  • For those who were born, work, or live in any Federal Territories upon the application, especially those who do not own any property in the Federal Territories area.
  • Retirees are eligible for this scheme, subject to terms and conditions.
  • Household gross income for individual applicants (single) must not exceed RM10,000 per month, while married couple must have a total income of no more than RM15,000 per month. The husband or wife may apply for RUMAWIP. Nonetheless, only one offer will be given to each household.
  • A 10-year moratorium is imposed on the property. During this period, you can’t sell or transfer your property to another party without prior approval from PR1MA.

RUMAWIP units are available in three categories:

  • Low-priced house
    • Built-up: 700 sq ft
    • Price: RM63,000 (KL and Putrajaya), RM52,000 (Labuan)
  • Medium low-priced house
    • Built-up: 800 sq ft
    • Price: RM63,001 – RM150,000
  • Medium-priced house
    • Built-up: 650 sq ft
    • Price: RM150,001 – RM300,000

6) Rumah Selangorku (RSKU)

First introduced in 2014, RSKU is designed to assist middle-income groups in purchasing affordable houses in key urban centres within the state of Selangor.

The properties under this scheme include high-rise apartments and landed houses. The prices depend on the type of property and range from RM42,000 to RM250,000.

Under the RSKU scheme, the houses are categorised into five types A, B, C, D, and E, with different eligibility criteria, depending on the applicant’s monthly household income. Applicants are allowed to choose only one type of house. 

Here are the eligibility criteria:

  • Applicants must be at least 18 years old
  • He or she must be a Malaysian citizen and a resident of Selangor
  • Rumah Selangorku is for first-time home buyers only
  • The husband or wife may apply for Rumah Selangorku. However, only one offer will be given to each household.
  • Applicants do not own a property either through a government or private project in Selangor
  • Type A: Maximum household income of RM3,000 per month
  • Type B: Maximum household income of RM7,000 per month
  • Type C: Maximum household income of RM10,000 per month
  • Type D & E: Maximum household income of RM14,500 per month

As the housing scheme is designed for the B40 and 40 groups in Selangor, there are some ground rules that potential buyers need to adhere to:

  • The property cannot be sold within 5 years of purchase
  • The owners are not allowed to rent out the property
  • Applications are active for two years
  • After two years, if not successful, applicants may apply again

Get more details on Rumah Selangorku here.

Other Affordable Housing Scheme By State Governments In Malaysia

Some state governments have their respective affordable housing schemes. They include:

  1. Perak: Projek Perumahan Perakku
  2. Melaka: Lembaga Perumahan Melaka
  3. Penang: Perbadanan Pembangunan Pulau Pinang
  4. Johor: Program Khas Rumah Johor
  5. Pahang: Skim Tanah Warisan (STW)
  6. Sabah: Rumah Mesra SMJ
  7. Sarawak: Affordable Housing Projects, Housing Deposit Assistance Scheme
  8. Perlis: i-Rahman Scheme
  9. Kelantan: Home Ownership Campaign

ALSO READ: 10 things to look out for when buying a highrise property

So there you go! No matter which income group you belong to, there are plenty of options to help ease the burden of buying your first home. Happy house hunting!

Edited by Sherry Koh

Disclaimer: The information is provided for general information only. Malaysia Sdn Bhd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.

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