THE Penang government has launched the MADANIHome Ownership Campaign (MOC) 1.0 to revitalise the property sector and encourage home ownership among Penangites.

State Housing and Environment Committee chairman, Datuk Seri Sundarajoo Somu, said the campaign, spearheaded by the Penang State Housing Board, features a series of incentives designed to stimulate the market and address the issue of unsold properties.

“We want to spur the market and help resolve the property overhang,” Sundarajoo told a press conference at Komtar today.

Among the key features of the campaign is the introduction of a new housing category, Rumah MutiaraKu D (RMKu D), aimed at families with a household income of up to RM15,000 a month.

“This category targets young professionals, such as engineers and architects working in multinational corporations. The units are priced between RM250,000 and RM400,000 in Seberang Perai, and between RM300,000 and RM400,000 on the island,” he said.

Each RMKu D unit offers a spacious layout of at least 950 square feet and comes with detailed specifications, including four bedrooms, three bathrooms, and quality finishes. However, these units are not allowed to be sold on the open market and cannot be used to meet mandatory housing quota requirements.

He added that the initiative is timely given the current housing landscape, which sees an average of 100 new applications monthly for Rumah MutiaraKu (RMKu), formerly known as affordable housing. As of May 2025, a total of 3,228 applicants are on the waiting list for RMKu Type C homes.

Formerly known as the Home Ownership Campaign (HOC), the MOC will be implemented for a year, from 1 June 2025 to 31 May 2026.

“It is expected to have a positive impact on Penang’s property market by increasing homeownership rates, encouraging the approval of new strategic projects, and fostering a more inclusive, sustainable, and competitive property development ecosystem,” he said.

He added that the state government would continue working closely with industry players and stakeholders to ensure the campaign’s success and long-term viability in driving growth in Penang’s housing sector.

As part of the campaign, Sundarajoo also announced that a 5% discount on Bumiputera quotas for both residential and commercial properties has been extended to Indian Muslims.

“This is not something new. It had happened in the past and we’re reintroducing it,” he said.

Sundarajoo added that for Rumah MutiaraKu (RMKu) Type C3 units, priced at RM300,000, the state government allows developers to upgrade the units, but with a cost cap.

“The upgrades must not exceed 50% of the base price. This means the maximum price after upgrades, such as the addition of an extra parking bay, built-in furniture, or additional electrical points, is capped at RM450,000,” he said.

He noted that RMKu C3 units have experienced slower take-up rates, which prompted the state to introduce this flexibility.

“This is why we are allowing upgrades to better meet buyer expectations. However, we don’t want the system to be abused by any developer,” he cautioned.

On Penang’s affordable housing target of 220,000 units by 2030, Sundarajoo said that the state, through the Penang State Housing Board (LPNPP), has successfully developed 167,574 units so far, or a 76.17% achievement.

As for rent-to-own housing, of the targeted 22,000 units, 5,066 have been completed, marking a 23.16% completion rate.

To help more first-time buyers enter the property market, the state has introduced several initiatives, including deposit schemes as low as RM10.

“For example, if a unit is priced at RM200,000, the purchaser only needs to pay RM10. The remaining RM19,990 required for the 10% down payment will be borne by the developer,” he explained.

According to Sundarajoo, this initiative was well-received, with 300 units taken up in less than three hours during a campaign last month.

“The key issue isn’t that homes are overpriced. Many young people can afford the monthly bank instalments, but they struggle with the initial down payment. By encouraging developers to absorb this 10% for eligible buyers with 90% bank loan approval, we are making it easier for young people to own homes, ideally starting in their 20s,” he said.

Among the highlights of the MADANIHome Ownership Campaign is the reduction in contribution rates for developers who do not physically construct RMKu Type A and B units.

On Penang island, the contribution rate to MBPP has been lowered from RM120,000 to RM100,000 for local developers, and from RM150,000 to RM120,000 for foreign developers. In Seberang Perai, the new rates to MBSP are RM72,000 (down from RM120,000) for local developers, and RM100,000 (down from RM150,000) for foreign developers.

To further support cash flow and project delivery, the state has also increased the allowable quota for open market unit releases from 20% to 50%.

“Developers may now release units in phases aligned with construction progress, but a 10% release fee based on the sale price will be imposed,” Sundarajoo said.

Datuk Khoo Teck Chong, president of the Real Estate and Housing Developers’ Association (Rehda) Penang, expressed his appreciation to the state government for considering their feedback and incorporating several of their proposals.

“In 2024, none of the incentives were extended to Rehda. The market needed a boost, and we’re glad that following our discussions, the state government has agreed to some of our suggestions, even if not all were granted,” Khoo said.

Also present at the press conference were state Local Government, Town and Country Planning Committee chairman H’ng Mooi Lye, PLANMalaysia Penang director Datuk Rozita Hamit, PLANMalaysia Penang deputy director (Planning) Abd. Taip Abd. Rahman, Penang State Housing Board director of Development Planning Fakhurrazi Ibnu Omar, Penang State Housing Board chief enforcement and legal officer Nadzifah Abd Rahman, Rehda Penang deputy chairman Datuk Chan Soo How, MBPP director of Development Planning Mohd Bashir Sulaiman, and MBSP Town Planning Department assistant town planning officer Nursaffrina Ropiee.

Story by K.H. Ong

Pix by Muhamad Amir Irsyad Omar