15/10/2025

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BIZ & FINANCE WEDNESDAY | OCT 15, 2025

Juwai IQI: Budget 2026 favours first-home buyers

LIAM supports govt’s efforts to expand life insurance coverage KUALA LUMPUR: The Life Insurance Association of Malaysia (LIAM) fully support the government’s continued efforts in Budget 2026 to promote financial inclusion and raise awareness on the importance of life insurance protection among Malaysians, particularly the younger generation. LIAM said these initiatives will encourage proactive financial planning, strengthen social protection, and expand insurance coverage for the overall well-being of all Malaysians. LIAM CEO Mark O’Dell expressed appreciation for the government’s initiative to extend the existing individual income tax relief of up to RM3,000 for life insurance premiums to include life insurance protection for children as this will encourage parents and young families to plan early for their children’s financial security. “Purchasing life insurance for children at a young age is generally more affordable and ensures continued coverage into adulthood, regardless of future health conditions. “This incentive will also increase the penetration rate of life insurance, which currently stands at 45% – meaning that only four out of 10 Malaysians have life insurance protection,“ he said in a statement. Currently, taxpayers also enjoy another combined tax relief of up to RM4,000 for medical and education policies for children – an important complement to the life insurance tax relief extension that further supports holistic family financial planning. Further, LIAM also noted that the industry applauds the government’s decision to extend the stamp duty exemption for Perlindungan Tenang and other low-premium insurance products until 2028. This measure will continue to make insurance protection more accessible and affordable, particularly for the B40 community. “The continued support from the government plays a vital role in empowering the B40 group to take the first step towards financial security and long-term financial resilience,” Mark said. He also noted that the life insurance industry remains committed to supporting the government’s aspirations to strengthen the nation’s social protection framework. “The industry plays a pivotal role in enhancing the rakyat’s financial well-being through protection, long-term savings, and healthcare funding. “With proactive planning and the right tax incentives, both the private sector and the rakyat can be further encouraged to take part in building a sustainable social protection ecosystem – in partnership with the government – for the benefit of all Malaysians,” Mark said.

PETALING JAYA: Budget 2026 is set to significantly ease the path to homeownership for Malaysians, particularly those in the B20 and M40 groups, with measures that make first-home buyers the “real winners”, according to Juwai IQI co-founder and group CEO Kashif Ansari. “This budget does something for everyone who lives in a home, and just about everyone does. There are at least nine separate measures that directly affect the housing market, but three of them will have the biggest impact,” he said. The three most significant policies, Kashif noted, are the introduction of a foreign buyer duty of up to 8%, expanded support for first home buyers through RM20 billion worth of Housing Credit Guarantee Scheme (SJKP) guarantees and stamp duty exemptions, and major transport infrastructure projects that will reshape housing demand. Kashif said the foreign buyer duty will enhance perceptions of fairness in the property market. “Everyone knows we need foreign investment, but local buyers want to know the system is fair for them. The foreign buyer duty still permits foreign investment and will reassure locals that they actually have the advantage,” he said.

o Stamp duty cuts, RM20b loan aid and new transport links to ease homeownership, spur housing demand

He also highlighted the government’s investment in transport infrastructure, which is set to drive new housing demand. “The new double-track electric train service in Johor will make commuting easier, while the Klang Valley LRT3 is already spurring capital gains and new construction in nearby neighbourhoods. Other major projects including the East Coast Rail Link and the Penang LRT, will also have lasting impacts on housing markets,” he said. Kashif added that renters are not left out, with RM143 million allocated for renovations to PPR and strata homes, a tax deduction for converting commercial properties into residential units, and RM95 million for upgrading facilities in Chinese and Indian villages. “Overall, the budget is a boon for anyone who lives in a home in Malaysia. First-time buyers will benefit from lower upfront costs and easier loan approvals, while renters can expect better quality housing and improved living conditions,” he said.

While the additional costs may discourage some foreign buyers, he pointed out that the impact on overall transaction volumes will be limited as offshore purchases account for less than 0.5% of residential transactions. Kashif described first-home buyers as the “real winners” in the budget, with stamp duty exemptions now covering both transfer instruments and loan agreements for homes priced up to RM500,000, extended until Dec 31, 2027. “For example, on a RM300,000 home, you’d save about RM5,000 on the transfer duty plus about RM1,350 on the loan agreement duty, a total savings of RM6,350,” he said. He added that the doubling of SJKP guarantees to RM20 billion will help about 80,000 buyers, including gig workers and the self-employed, secure mortgages without traditional payslips. “These lower entry costs and easier approvals create a clearer path to owning your first home,” Kashif said.

Boards key to Malaysia’s governance reform: ICDM PETALING JAYA: Budget 2026’s emphasis on governance reform and institutional integrity signals the government’s strong commitment to strengthening fiscal management, enforcement and transparency, said Institute of Corporate Directors Malaysia (ICDM) president and CEO Jackie Mah. Mah added that Budget 2026 places critical emphasis on sustainability, with RM3 billion allocated under the Green Technology Financing Scheme, strong backing for the National Energy Transition Roadmap (NETR) and the launch of the Voluntary Carbon Market Phase 2. directors registry has now reached 1,500 members, reflecting a wide range of skill sets, gender balance and age representation,”she said. Mah further pointed to the introduction of the Asean Business Status Entity, coordinated by the Securities Commission Malaysia, which will enable public listed companies and mid-sized firms to scale regionally.

“Climate governance is now a core component of national economic strategy. Boards must provide oversight to navigate climate-related risks and opportunities, ensuring long-term value creation,” she said. She also welcomed the RM30 million allocation under the Women Leadership and Governance Fund to train 500 women for board and policy roles, noting that diversity and inclusive leadership remain central to Malaysia’s governance agenda. “Diversity is pivotal to our mission. Our

She said the allocation of RM700 million to enhance enforcement and integrity institutions highlights that governance applies across the board, from public service and state-owned enterprises to family businesses and SMEs. “Good governance is paramount to guiding companies and businesses in doing the right thing for stakeholders and communities. As the pinnacle of leadership of the country’s largest organisations and revenue drivers, boards must lead the transformation,” she said.

“This is aligned with ICDM’s vision of cross border directorships and talent mobility, reflected through our Asean Directors’ Registry and the Asean Institute of Directors Network,” she said. Mah reaffirmed ICDM’s commitment to supporting boards through its programmes, including the Aspiring Directors Immersion Programme, certification pathways, and regional networks.

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