LSN News › Malaysia

Politics · Malaysia Bureau

Call for housing incentives to encourage multigenerational living in Malaysia

A civil society group is pressing the government to include tax breaks and subsidies for housing near parents in the 2027 budget. The proposal aims to support traditional family structures while addressing affordability challenges.

LSN Malaysia · 8 October 2026

Call for housing incentives to encourage multigenerational living in Malaysia

REACH, a Malaysian policy advocacy organisation, has renewed calls for the government to introduce housing incentives designed to encourage adult children to live in close proximity to their parents. The group is urging policymakers to incorporate the measures into the upcoming 2027 budget framework.

The proposal centres on translating existing concepts into concrete, implementable policies. Potential measures could include tax deductions for property purchases near elderly parents, subsidised housing schemes in multigenerational communities, or reduced stamp duties for qualifying purchases.

Proponents argue such incentives would serve multiple policy objectives simultaneously. They could strengthen family support networks, reduce strain on elderly care services, and address housing affordability by enabling cost-sharing arrangements among family members.

REACH had previously floated the concept earlier this year, emphasising the need to move from preliminary discussion to formal policy development. The group maintains that without specific budgetary allocation and clear implementation mechanisms, the initiative will remain aspirational rather than operational.

The timing comes as Malaysia grapples with dual pressures: rising housing costs that strain younger demographics, and an ageing population requiring greater family-based support infrastructure.