Rehda Institute: One-size-fits-all RM300,000 housing cap needs rethink

The Rehda Institute has welcomed the Malaysian government's decision to potentially move away from the uniform RM300,000 price ceiling for affordable housing, favoring an income-based approach. The institute believes that housing affordability benchmarks should be based on local household incomes and actual demand, rather than a fixed limit.

It supports the government's emphasis on data-driven planning using demographic, income, and demand information to address supply-demand mismatches and prevent abandoned projects. The institute also welcomed the introduction of housing financing schemes tailored to senior citizens, retrofitting grants, and incentives for developers to build liveable senior care centers.

It noted that Malaysians aged 65 and above made up 8% of the population in 2025, up from 7.6% in 2024, and warned that Malaysia will become an "aged nation" by 2048 when this group reaches 14% of the total population. The institute's chairman, Datuk Jeffrey Ng, noted that the government's plan aligns with the institute's advocacy for demand-driven supply, demographic responsiveness, and flexible financing.

The final step, he said, was to make sure numerical targets are guided by actual household needs, focusing not just on the number of homes built or owned, but on whether Malaysians have access to suitable housing in the right location and at a sustainable cost.