Expand rent-to-own scheme nationwide under 2027 budget, says group

The Centre for the Advancement of Community and Housing (REACH) has advocated for the expansion of the rent-to-own (RTO) scheme nationwide under the 2027 budget. This move aims to assist Malaysians with irregular incomes, such as self-employed individuals and those in the gig economy, who struggle to secure traditional bank financing.

REACH's chief coordinator, Iskandar Abdul Samad, emphasized that the scheme should prioritize B40 and lower M40 households, along with those facing irregular incomes. He stressed that monthly payments must remain affordable based on household income.

Iskandar suggested that the government could either purchase affordable homes from developers and offer them under an RTO scheme, with ownership transferred after payments, or act as a financing guarantor for eligible buyers. Both models have been explored previously, with the Housing Credit Guarantee Scheme and the People’s Housing Programme RTO initiative.

The ultimate objective of national housing policy, according to Iskandar, should not merely be to construct more homes but to ensure that Malaysians who need homes can truly afford to own them. The current focus of the RTO scheme is limited to certain states, but the government continues to explore additional financing instruments, including fixed-rate mortgages and shared ownership models, to cater to evolving employment and income patterns.