Version: BM
The Malaysian government has officially announced an increase in the national minimum wage to RM1,700, effective August 2025.
However, the news was met with mixed reactions.
While some hailed it as long overdue, many Malaysians questioned whether it’s enough to make a difference, especially in the context of urban living.
The honest answer? While any increase is better than none, RM1,700 still isn’t enough to survive, let alone buy a house, with the rising cost of living in Malaysia.
Especially in places like Kuala Lumpur, Johor Bahru or Penang, this wage bump doesn’t exactly move the needle.
So what can Malaysians really do to improve their chances of homeownership in a climate that feels increasingly out of reach.
Can you Really Buy a Home with RM1.7K?
No, Homes in Malaysia Are Still Expensive
It’s no secret: property prices in Malaysia (particularly in urban hotspots) have steadily increased over the last decade.
While developers have shifted toward smaller, more affordable units in some cases, a typical entry-level property still starts from RM500,000 in city areas.
| City | Type | Starting Price (New/Secondary) |
| Kuala Lumpur | Condo | RM500,000 – RM800,000 |
| Selangor (PJ, Subang) | Apartment/Townhouse | RM400,000 – RM700,000 |
| Penang Island | High-rise | RM450,000 – RM700,000 |
| Johor Bahru | Condo/Landed | RM400,000 – RM650,000 |
Why is housing so expensive?
- Land scarcity in cities = premium pricing
- Developer cost pass-through (materials, compliance, approvals)
- Urban migration driving demand in Klang Valley, Penang, and Iskandar Malaysia
- Lifestyle marketing: New launches often come with pools, gyms, co-working spaces, inflating prices
What does it take to afford a RM500K home?
- 5% downpayment = RM25,000 upfront
- Monthly loan repayment (30 years @ 3.5%) = RM2,245
- Ideal monthly income to qualify for the loan = RM5,000 minimum
- And that’s without factoring in legal fees, renovation, furniture, maintenance fees, insurance, and utilities
At RM1,700 per month, even saving for a downpayment would take years if you had zero other expenses, which is obviously not realistic.
Is Government Housing Schemes Helpful?
For those unable to afford market-priced homes, the government continues to offer housing schemes aimed at B40 and M40 groups.
These programmes are designed to make homeownership more accessible, but they come with their own challenges.
- Offered by state governments (e.g. Selangor, Johor, Penang)
- Prices range from RM200K–RM300K
- Malaysian citizen aged 18+
- Household income below RM5,000
- First-time home buyer
- Units often located in outer city zones or new townships
👉 Tip: Check your state’s official housing portal. Each has its own application process and project listing.
2. Program Perumahan Rakyat (PPR)
- Built and managed by the Ministry of Housing and Local Government
- Aimed at B40 group, often those earning under RM3,000/month
- Rental: RM124/month
- Ownership: From RM35,000–RM45,000
- Located in high-density areas, often with basic amenities
👉 Tip: PPR units are extremely limited and in high demand. Priority is often given to families, senior citizens, and those with no fixed shelter.
- Focused on middle-income earners (M40)
- Located in urban areas like Kuala Lumpur, Seremban, Melaka
- Prices between RM250K–RM400K
- Up to 100% financing via participating banks
- Special end-financing schemes (reduced interest rates)
👉 Tip: These homes are usually balloted due to oversubscription. Ensure your documents are updated and apply early.
While these schemes are helpful, they don’t scale fast enough to match the growing demand and many are in less central areas, requiring long commutes and additional transport costs.
OPR Decrease: Renewed Hope for Loan Eligibility
However, in July 2025, Bank Negara Malaysia reduced the Overnight Policy Rate (OPR) to 2.75%, aiming to stimulate the economy amid sluggish growth.
This decision has a knock-on effect on consumer loans including home loans.
What does a lower OPR mean?
- Banks reduce their Base Lending Rate (BLR)
- Home loans become cheaper in terms of monthly instalments
- Loan approvals may improve, especially for buyers with lower income or borderline eligibility
| Interest Rate | Monthly Repayment |
| 4.0% | RM1,910 |
| 3.5% | RM1,796 |
| 3.0% | RM1,686 |
That’s RM224/month saved at a 1% difference. For M40 earners, this can help tip the scale.
But for those on RM1,700/month, even a lower interest rate doesn’t create affordability.
👉 Tip: Use a home loan calculator and always get a loan pre-approval before committing to any project.
Income Strategies to Help You Buy a Home in 2025
Let’s be real: you need more than one income source to survive and save in cities like KL, Penang, or Johor.
The good news is, the freelance and gig economy in Malaysia is booming, and there are many ways to earn extra, even with a full-time job.
Side Hustles You Can Start Now (With Low Entry Barrier):
1. Real Estate Negotiator (REN)
- Flexible hours, unlimited income potential via commissions
- Join an agency, attend training, register with BOVAEA
- Achieve unlimited income through consistent performance and commitment.
2. Food & Parcel Delivery
- GrabFood, Lalamove, ShopeeFood, etc.
- Average RM100–RM150/day during peak hours
- Fast onboarding, especially if you have a motorcycle
3. Freelance Tutoring
- Teach BM, Maths, Science, or English online or in-person
- Platforms: Preply, TutorKami, FB tutor groups
- Earn RM40–RM100/hour
4. E-commerce Dropshipping
- Sell on Shopee or TikTok without handling inventory
- Products from China via agents like Kumoten or AliExpress
- Focus on trending items or personalised goods
5. Freelance Graphic Design / Writing / VA
- Use Fiverr, Upwork, or Facebook groups to find clients
- Can be done part-time from home
- Pay in USD often means better rates
6. Part-time Promoter or Event Crew
- Work weekends for product launches or roadshows
- RM120–RM200 per day
👉 Tip: Start small, pick just one hustle that fits your personality or schedule and be consistent. Over time, these side gigs can significantly increase your savings potential.
Final Thoughts on RM1,700 As Minimum Wage
While the minimum wage increase to RM1,700 is a step forward, it’s simply not enough for those living in urban Malaysia to survive much less save for a home.
Housing remains out of reach for most minimum wage earners without subsidies, side income, or family support.
In short, homeownership today demands creative solutions: from accessing government schemes to leveraging gig work, improving financial literacy, and making smart long-term choices.
Until structural issues around wages and affordability are addressed, the path to owning a home in Malaysia remains steep but not impossible, especially with the right tools and mindset.
Frequently Asked Questions (FAQs)
Is RM1,700 enough to buy a house in Malaysia?
No — it’s far below the income needed to afford even entry-level homes in most cities.
Are there any housing schemes for low-income Malaysians?
Yes, programmes like Rumah Mampu Milik, PPR, and PR1MA aim to help B40 and M40 groups.
Will the lower OPR make it easier to get a home loan?
Slightly — lower interest rates reduce monthly repayments but don’t solve affordability issues.
What can I do to boost my income if RM1,700 isn’t enough?
Consider side hustles like real estate, tutoring, delivery, or freelance online work.
Ready to turn flexibility into financial freedom? Join us as a property agent and unlock high-paying remote work that fits your lifestyle.
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