KUALA LUMPUR, October 10 — The MADANI Government has announced a comprehensive set of initiatives under Budget 2026 to enhance the welfare, housing, and career progression of Malaysia’s civil servants. A total of RM2.2 billion has been allocated to build, maintain, and repair government quarters for doctors, nurses, teachers, military personnel, police, firefighters, and prison officers.
Among key projects include the construction of 800 housing units for armed forces personnel in Kuantan, Pahang worth RM500 million, and new quarters for ESSCOM officers in Lahad Datu and immigration officers in Lipis and Kuala Lumpur. Contract staff will benefit from housing loan guarantees of up to 120% worth RM1 billion through SJKP, while BSN will provide RM500 million in financing for their first homes.
To support young civil servants, the Youth Housing Financing Scheme (LPPSA) will be extended until December 2026, benefiting up to 48,000 officers under 30 years old. The maximum loan eligibility under LPPSA will also increase to RM1 million, and the process for second-time financing will be simplified.
The government will also provide a RM500 monthly living allowance to 4,000 retired KEMAS contract staff, and a special RM500 payment will be distributed to 120,000 recipients of the Pingat Jasa Malaysia, honoring their service to the nation.
