By Chan Wei Chao (REN 39846), Team Leader, Bricksmen Team · IQI Realty Sdn. Bhd. · Updated 12 November 2026
Budget 2027 restores a full stamp duty exemption for transactions tied to reviving abandoned housing projects. The exemption, set out in the Finance Ministry’s Budget 2027 tax measures, covers loan agreements and instruments of transfer executed from 1 January 2027 to 31 December 2030, subject to certification by the Housing and Local Government Ministry (KPKT).
The exemption at a glance
| Item | Detail |
|---|---|
| Exemption | 100% stamp duty |
| Who qualifies | Rescue contractors or developers brought in to revive a project, and the original purchasers of units in that project |
| Documents covered | Loan agreements and instruments of transfer linked to the rehabilitation. For original purchasers, this includes loan agreements for additional financing |
| Period | Instruments executed from 1 January 2027 to 31 December 2030 |
| Condition | Certification by KPKT |
| Previous scheme | A similar exemption covered 1 January 2013 to 31 December 2025 |
What it does not do
- The government will not settle buyers’ outstanding housing loans. Buyers must keep paying under their financing agreements.
- Buyers in projects officially declared abandoned can ask the National Housing Department for a KPKT confirmation letter. It can support applications for a lower loan interest rate, loan restructuring or a second EPF withdrawal to buy another home.
- Government employees with LPPSA loans can use the letter to apply to cancel and re-apply for a housing loan, or to defer the 4% interest during rehabilitation or for five years, whichever comes first.
- None of this is automatic. Each bank, EPF or LPPSA still has to approve the application.
How big is the problem?
| Measure | Figure |
|---|---|
| Abandoned private housing projects in Peninsular Malaysia (31 August 2026) | 262 projects: 99 licensed (28,289 units) and 163 unlicensed (10,605 units) |
| Troubled projects handled by KPKT, 2023 to August 2026 | 1,726 projects, 199,643 units, GDV RM158.16 billion |
| Abandoned projects revived in that period | 37 projects, 6,122 units |
| Target | Zero sick and abandoned private housing projects by 2030 |
The reports give national figures only. They do not break the numbers down by state.
What Penang buyers can do before buying
- Check the developer and project: look up the developer’s licence and the project’s progress. KPKT’s TEDUH portal helps, but it has limits; see what TEDUH can and cannot tell you.
- Consider completed homes: a completed project carries no construction risk. Many projects in the Penang project directory are marked as completed.
- First-time buyers: Budget 2027 also extends the first-home stamp duty exemption. See what Budget 2027 means for Penang property and estimate your costs with the stamp duty calculator.
Frequently asked questions
Who gets the stamp duty exemption?
Rescue contractors or developers reviving an abandoned project, and the original purchasers of units in it, subject to KPKT certification.
Which period does it cover?
Loan agreements and instruments of transfer executed from 1 January 2027 to 31 December 2030.
Will the government pay off my loan if my project is abandoned?
No. Buyers must keep repaying their loans. A KPKT confirmation letter can support requests for lower rates, restructuring or a second EPF withdrawal, subject to approval.
Want a completed home instead?
I can share completed and near-completion projects in Penang with the latest prices. WhatsApp or call +60 10-313 9113.
Sources
- Malay Mail: Still paying for an unfinished home in Malaysia? Here’s what Budget 2027 offers affected buyers
- Bernama: Budget 2027: Stamp Duty Exemption For First Home, Revival Of Abandoned Housing Projects
This article is general information based on published reports as of 12 November 2026. Budget measures take effect only once legislated. Check your own case with your bank, lawyer or KPKT.