KUALA LUMPUR (Aug 21): The Housing and Local Government Ministry (KPKT) said it is looking into a plan to provide up to RM30,000 in deposit assistance for first-time homebuyers.

Minister Nga Kor Ming said the plan, dubbed the Madani Deposit initiative, is aimed at alleviating the monthly payment burden of the first-time purchasers, especially youth buyers in the B40 and M40 income groups.

“This is to ease the monthly payment commitment for first-time homebuyers, especially the youth among the B40 and M40 groups, and to realise the ministry's 'Shelter for All' aspiration of providing every citizen with a place to live,” Nga said in a statement on Wednesday.

The Madani Deposit initiative is one of 33 proposals put forward by KPKT to the Finance Ministry for Budget 2025. Other proposed initiatives include the creation of 100 Madani recreational parks, the transformation of retention ponds and the introduction of electronic property sale agreements with e-stamping.

Addressing the issue of abandoned projects, Nga said that since January 2023, his ministry has successfully revived 704 sick or abandoned projects, with a total gross development value of RM58.94 billion. This has helped over 65,000 homebuyers secure their desired homes.

“We aim to ensure there are no more abandoned housing projects by 2030. KPKT will amend the law to ensure that developers found guilty of fraud will not be allowed to leave the country. We will also establish escrow accounts. This means that all money paid by homebuyers will be used exclusively for the intended project,” he said.

He said without escrow accounts, errant developers would be able to transfer funds from one project to another project, leading to the abandonment of the first project.

"After this amendment, such practices will no longer be permitted,” he added

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