By Marlynda Meraw
“This is one of the approaches of the government to help our people own houses legally. The new approaches to affordable housing and village development will include all basic infrastructure and facilities like utilities supply, roads, and drainage which will be borne by the government, and with houses built on the land lots for people to own. The owners just have to pay for the cost of building the houses and they can take up loan from Mutiara Mortgage.” Abang Johari (December 18, 2020)
HOUSING affordability remains a significant concern in Sarawak, with rising property values making homeownership an elusive dream for many families, particularly those in the lower-income groups. Limited land availability for new developments has further exacerbated the issue, creating a complex problem that requires strategic intervention.
Recognising the critical importance of housing to the well-being of Sarawakians, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has led transformative initiatives aimed at ensuring affordable homeownership for all. These efforts reflect his vision of a progressive Sarawak where every citizen has access to a secure and quality housing.
Transforming Homeownership in Sarawak
Through Abang Johari, the Sarawak government has implemented bold strategies to address housing challenges through innovative financing schemes. At the core of these efforts is a unique initiative enabling families to purchase homes valued at RM300,000 for as little as RM120,000. This achievement shows the government’s commitment to making housing both accessible and affordable.
A key component of this initiative is the State’s absorption of substantial infrastructure costs, including land embankments, utilities, and road construction. By removing these financial burdens, the government ensures that aspiring homeowners need only focus on the property’s cost, making homeownership a tangible reality for many.
To further ease financial strain, additional measures have been introduced. Eligible homeowners benefit from a significantly reduced land premium of only RM2,500, while qualifying buyers receive RM10,000 in deposit assistance through the Housing Deposit Assistance Scheme (HDAS). HDAS, introduced under the Sarawak State Budget 2022, offers up to RM10,000 in financial assistance for first-time homebuyers, and the Sarawak government had assisted 1,900 homebuyers through the scheme as of February 2025. These targeted interventions bridge the gap between aspiration and affordability, turning homeownership into a reality for thousands.
The Mutiara Mortgage
Central to these housing initiatives is Mutiara Mortgage & Credit Sdn. Bhd. (Mutiara), a wholly-owned subsidiary of the Housing Development Corporation (HDC) in Sarawak. Since its inception, Mutiara has provided more than RM500 million in housing loans, benefitting thousands of Sarawakians. Mutiara administers a range of financing solutions designed to cater to Sarawak’s diverse population, with a particular focus on the B40 and M40 income groups. Among its flagship programmes is the Mutiara Affordable Home Financing Scheme (MAHFS), which provides affordable financing for social housing projects initiated by HDC and other State agencies.
First conceptualised during Abang Johari’s tenure as Minister of Housing, the MAHFS has since become a cornerstone of the government’s housing policy. Minister of Housing, Public Health, and Local Government (MPHLG) Datuk Amar Dr Sim Kui Hian shared that the Sarawak government had helped 1,328 applicants through Mutiara’s financing with a total of RM78 million as of September 2022. The mortgage loans have a one per cent interest rate and a 100 per cent financing margin, a unique feature exclusive to Sarawak. “And 94 per cent of these people (who took the loan) are in the low-income group. They are either working with a private company with no fixed income, like the hawkers, or they are self-employed. But I’m happy to say that the number of non-performing loans is zero,” said Dr Sim. Later in 2023, Dr Sim revealed that RM122 million had been allocated to Mutiara to address end-financing issues affecting the B40 and M40 homebuyers, with RM84 million approved and RM54 million disbursed as of August 2023.
In October of the same year, Dr Sim shared that Mutiara had approved 1,499 applications, totalling RM93.13 million, with RM75.56 million disbursed to 1,170 homebuyers at a reduced annual interest rate of one per cent for B40 and three per cent for M40. In 2024, an additional RM122 million was allocated to continue supporting this initiative. As of February 2025, Mutiara had approved over 9,000 housing loans, enabling families across Sarawak to secure homeownership.
Reflecting the government’s inclusive policies, Mutiara also offers Shariah-compliant financing options. Securing Shariah Compliance Certification in 2021, it now provides Islamic Home Financing Packages with profit rates as low as 1 per cent, ensuring accessibility for homeowners seeking Islamic financing solutions.
Strengthening Infrastructure and Housing Development
Significant investments have been made in infrastructure and housing across Sarawak. Through the HDC, Dr Sim said that his Ministry, MPHLG, was allocated RM262.8 million under the Twelfth Malaysia Plan (12MP) Mid-Term Review for the implementation of 38 projects, including 35 physical and three non-physical initiatives. Physical projects include the development of Rumah Mampu Milik (RMM) and Rumah Spektra Permata (RSP) in various locations, including Kuching, Serian, Sri Aman, Betong, Sarikei, Sibu, Kapit, Mukah, Miri, and Limbang.
Notably, 161 units of RSP have been developed in Spaoh, with construction having started in 2022 under the Sri Pertiwi housing initiative. These projects also involve the implementation of roads and infrastructure upgrades in areas such as Bandar Baru Sibu Jaya and traditional village areas in Kuching, contributing to more integrated, accessible communities.
In addition, RM242.04 million has been designated for eight Projek Rakyat, which include upgrades of infrastructure in Village Expansion Scheme Igan and Village Expansion Scheme Tian. Meanwhile, six projects under the RSP programme involve four Village Expansion Schemes in Kuching, Samarahan, Serian, and Betong, and two Relocation Schemes in Limbang and Lawas.
Key Housing Projects of Mutiara
Mutiara plays a crucial role in supporting affordable housing programmes such as Spektra Lite, Spektra Medium, Putera, and Sri Pertiwi, catering to a broad spectrum of buyers. These programmes align with the State’s vision of inclusive development, enabling families with modest incomes to own quality homes. Its financing extends to major housing developments across Sarawak, reinforcing the State’s commitment to expanding homeownership.
Meanwhile, the Kampung Datu Redevelopment Project aims to revitalise and modernise housing for displaced communities, while the Darul Hana Development integrates affordability with contemporary living standards, fostering a vibrant and sustainable community. To enhance efficiency and transparency in homeownership, Mutiara has also implemented a fully digital loan application system, streamlining processes and improving accessibility.
By embracing digitalisation, the company aligns with Sarawak’s broader transformation agenda, making it easier for prospective homeowners to navigate property purchases.
Affordable Homes, Prosperous Lives
The Sarawak government’s commitment to affordable housing is evident in its strategic initiatives and policies to ensure that more families can own homes without overwhelming financial burdens. In supporting this, Abang Johari said that RM40 million is allocated each year to assist B40 homebuyers—an amount equivalent to covering deposits for 4,000 housing units, enabling more families to own homes without incurring overwhelming financial burdens.
With Mutiara playing a vital role in financing and facilitating homeownership, thousands of Sarawakians have benefited from accessible housing solutions. As Sarawak continues its journey of development, these housing policies will remain a key pillar in ensuring a future where homeownership is within reach for all. Through careful planning and dedicated leadership, the State is setting a strong foundation for a prosperous and inclusive housing landscape.
The content featured here is an excerpt from the book “Rise of Sarawak: Abang Johari’s Era of Transformation”, published by Sage Salute Sdn Bhd.
