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B40: Learn How You Could Benefit From Being A Part Of The B40 Group in Malaysia

The Malaysian government has come up with several initiatives to assist the B40 group in securing a house of their own. These consist of: RM1 billion “Fund For Affordable Homes”, RM100 micro-homes, exemption of stamp duty, and 10% discounts.

Housing and Local Government Minister, Zuraida Kamaruddin is targeting to build 1 million units of affordable homes for the B40 group within the next 10 years. She said the aim is to build 100,000 units each year continuously, to enable more people, especially low-income earners, to be house owners. The DPMM will also stress on the size of the house which must be at least 900 square feet, as well as the amenities to the developers for the B40 group.

Fundamentally, T20, M40, and B40 are classifications for Malaysian citizens according to their median household income. Read the next article to understand the meaning for each categorizes. Therefore, if your monthly household income is RM3,000 and below, you and your family are categorized under the bottom 40% of the population (B40).

Remember, this is the median income for the entire household, not just one single breadmaker!

Don’t worry! The government certainly isn’t neglecting low-income makers! Plenty of measures have been established to help support the B40 group. Budget 2019 in particular, is heavily emphasized on efforts to help support this segment of the population as well as help elevate the M40 group.

Healthcare-wise, there’s PeKa B40 and mySalam. Property-wise, there are 4 initiatives by the government that aim to assist Malaysia’s B40 population.

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1) Bank Negara’s RM1 Billion – “Fund For Affordable Homes”

Earlier this year, Bank Negara Malaysia announced the establishment of Fund for Affordable Homes for B40 homebuyers to receive financial help when buying a property.

  • Extended loan repayment period up to a maximum of 40 years, or 70 years of age.
  • Financing rate of up to 3.5% per annum only.
  • Waived financial application processing fee.
  • Downpayment support
  • Exemption from stamp duty fees
  • Free financial education by AKPK (Agensi Kaunseling & Pengurusan Kredit) to help homebuyers understand the financial essentials involved in buying a home.


  1. You have to be a Malaysian citizen with a monthly income of no more than RM2,300 and no record of impaired financing in the past 12 months.
    1. Only if you are buying a property of RM150,000 and below.

The full list of criteria is a little lengthy, so check it out here!

Participating financial institutions include Ambank, BSN, CIMB, Maybank and RHB.

2. RM100 Micro-Homes For Single Malaysians

A lifeline has also been established for the single adults of the B40 population. Thanks to DBKL, shophouses on Jalan Tuanku Abdul Rahman are being transformed into micro-homes available for rent at only RM100 a month! With a communal concept featuring shared prayer rooms, launderettes, toilets, pantries, and parking spaces for both motorcycles and bicycles, who could ask for more?

This generous housing scheme is aimed at unmarried, low income young Malaysian citizens between the ages of 18 – 28. If you have an income of less than RM2,000, work in KL and don’t possess the luxuries of a car and house, these micro-homes might just be the good news you’ve been waiting for all year.

Starting this August (just about 3 months away!), applicants can start applying online via this link here.

3. Stamp Duty Exemption (First-Time Homebuyers Only)

If you are first-time homebuyers purchasing properties below RM300,000, you don’t have to pay a single cent of stamp duty. This would mean that if you’re buying a property at RM300,000, you’d have to pay RM5,000 for the stamp duty anymore.

From the 1st of July 2019 onwards, the revised stamp duty fees can be found here

4. 10% Discount on Properties Below RM150,000

Home Ownership Campaign 2019 (HOC 2019) is a six-month-long campaign which ends on the 30th of June 2019. Similar to the stamp duty exemption mentioned above, this discount applies to SPA agreements signed within this period only. If you have missed the chance, don’t worry, as the government will always come out with new strategies and new benefits for the citizens.

Not all developers are obliged to offer the 10% discount. Only those registered with REHDA (Peninsular Malaysia), SHAREDA (Sabah) or SHEDA (Sarawak).

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1. “Are There Any Affordable Units Under The HOC 2019 Campaign?”

There are a total of 3,384 units, all priced below RM150,000 (what, so cheap!?). These units are targeted specifically for the B40 segment.

2. “Is The Discount Rate Fixed At 10%?”

No, the 10% discount rate is just the minimum. The government encourages even higher discount rates of 15% or even 20%!

3. Does The 10% Discount Apply For All Properties?”

No, only residential properties that are completed or under construction, and governed by the Housing Development Act.

The properties also need to possess a valid developer’s license (DL), advertisement and sales permit (AP) and/or Certificate of Completion and Compliance (CCC).

B40 -> M40

While the government is playing a huge part in helping low-income earners improve their quality of life, there lies the risk of depending too much on the government. So, heads up and work harder!

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