GEORGE TOWN – The Penang state government has clarified that its decision to propose a 5% housing discount for Indian Muslims under the newly launched federal home ownership campaign is a corporate social responsibility (CSR) initiative and does not involve any allocation of public funds.
State Housing and Environment executive councillor Datuk Seri S Sundarajoo said the scheme encourages private developers to voluntarily offer a 5% discount on residential and commercial units to first-time homebuyers from the Indian Muslim community, for a period of one year.
He stressed that the initiative does not involve units reserved under the Bumiputera quota nor does it alter existing housing policies.
“This discount offer was implemented on the basis of social responsibility by developers and does not involve any forms of financial support or subsidies from the state government,” Sundarajoo said in a statement.
“This measure is part of the efforts to expand home ownership opportunities in the open market, especially for groups with a low participation rate, without affecting the rights of other racial groups.”
Sundarajoo explained that the proposal had received the approval of both the state executive council and the State Planning Committee as part of efforts to address the growing issue of unsold properties in the state.
He cited the Penang Property Market Report for Q4, released by the National Property Information Centre (NAPIC), which recorded 2,796 overhang residential units across various categories.
The executive councillor also assured that existing policies – including the Bumiputera housing quota and other initiatives aimed at first-time buyers – would remain in place.
“This initiative is just an addition to the existing programs that have been put in place to fulfil the state’s housing needs,” he said.
His statement comes following criticism from rights lawyer Rajesh Nagarajan, who described the move as unconstitutional and contrary to principles of equality and fairness in public policy.
Rajesh argued that the scheme violates Articles 8(1) and 8(2) of the Federal Constitution, which guarantee equal protection under the law and prohibit discrimination.
“Public funds and state-backed initiatives must benefit all Malaysians equally, and must not be used for preferential treatment for selected groups. It is clearly a racist policy,” he said in a statement issued yesterday.
Meanwhile, Penang DAP chief Steven Sim said that he has raised the housing discount issue with Chief Minister Chow Kon Yeow, who later agreed to raise this matter for a review and discussion in the next exco meeting.
”It is important that the Penang state government continuously uphold the principles of social justice to ensure that the right of every Malaysian to own a house is safeguarded,” he said in a statement. – June 7, 2025