Think tank urges government to revive MyDeposit scheme for first-time homebuyers

The proposal comes as Malaysia grapples with rising property prices that continue to place home ownership beyond the reach of many young professionals and middle-income earners. REACH, a policy and governance research institute, has put forward the MyDeposit concept as a targeted intervention to support this demographic in the upcoming fiscal year.

Under the proposed arrangement, the government would cover the initial deposit required for property purchases, removing a significant barrier to first-time buyers entering the housing market. Beneficiaries would subsequently reimburse the government through structured monthly or annual payments without incurring interest charges, making the scheme financially neutral for participants over its repayment period.

The think tank's recommendation addresses a persistent challenge in Malaysia's housing affordability crisis. First-time buyers frequently struggle to accumulate sufficient capital for down payments while simultaneously managing other financial obligations, effectively locking them out of homeownership despite having stable incomes and mortgage qualification.

The MyDeposit initiative would represent a departure from traditional lending mechanisms by positioning government as a facilitator rather than a lender, potentially reducing barriers related to credit assessment and collateral requirements. If adopted in Budget 2027, the scheme could provide a pathway to property ownership for thousands of eligible Malaysian households while maintaining fiscal prudence through the interest-free repayment model.