The Rumah Bakat Madani housing project in Penang will feature a vertical school concept, a move Prime Minister Datuk Seri Anwar Ibrahim says will enhance student safety and reduce transportation costs for families.

In a Facebook post on June 11, Anwar highlighted the government’s commitment to integrating education within residential developments as part of its Madani agenda, aimed at building compassionate and inclusive communities.

“This approach is not just about physical structures, but about holistic well-being,” he said, noting that the vertical school design within the project reflects this philosophy.

The initiative, led by private developer SkyWorld, targets low- and middle-income groups, offering affordable homes with access to essential infrastructure. In addition to the school, the development will include childcare centres, a surau, commercial areas, landscaped parks, and recreational facilities.

Anwar also emphasized the Madani government’s focus on fast-tracking approvals through coordinated efforts across ministries and with state governments to ensure timely project delivery.

The Prime Minister was briefed on the project by SkyWorld representatives in Putrajaya, reaffirming the government’s support for development that enriches community life while addressing key challenges such as education access and cost of living.

The long-awaited Notice to Commence Work for Penang’s Mutiara Line Light Rail Transit (LRT) project has finally been issued by Mass Rapid Transit Corporation Sdn. Bhd. (MRT Corp) in May, paving the way for construction to begin.

Transport Minister Anthony Loke Siew Fook confirmed that all outstanding issues between the Federal and State Governments regarding the LRT project were resolved in a meeting with Chief Minister Chow Kon Yeow in Putrajaya in May 2025.

Speaking at the launch of 50 Rapid Penang On-Demand vans on 10 June 2025, Loke announced, “All matters, including the long-pending Notice to Proceed, have been settled. Media reports have also confirmed that the main contractor has appointed subcontractors, so groundwork is expected to start within one to two months.”

Loke, who is also Member of Parliament for Seremban, added that the Ministry hopes the State authorities and project implementers will ensure proper traffic management and diversion plans are in place during the piling phase.

Earlier, Chow Kon Yeow, who is also the State Executive Councillor for Finance, Economic Development, Land, and Communications, had stated that construction could not proceed without the formal notice from MRT Corp. As a fully federally owned entity, MRT Corp’s approval was crucial for the SRS Consortium to begin work on the state’s first modern rail transit system.

Chow made the remarks during a media event in April 2025 after officiating the launch of a new e-waste recycling station in Batu Kawan.

The LRT Mutiara Line is a major infrastructure project expected to transform public transport in Penang, offering enhanced urban mobility and supporting future economic growth.

The upcoming revision and expansion of Malaysia’s Sales and Service Tax (SST), effective July 1, 2025, is expected to have minimal impact on the residential housing sector. According to RHB Investment Bank Bhd, contractors focused on residential projects, such as MGB Bhd and Kerjaya Prospek Group Bhd, will remain largely unaffected.

The revised SST introduces a 6% services tax on construction services, applicable to contractors with annual revenue exceeding RM1.5 million. However, residential and public housing projects are exempt, along with basic construction materials and certain business-to-business transactions, avoiding double taxation.

Conversely, contractors engaged in commercial, industrial, and infrastructure projects — including firms like Sunway Construction Group, Gamuda Bhd, and IJM Corporation — will be subject to the tax. These contractors may need to factor in the tax when bidding for new projects or renegotiate terms for ongoing contracts.

Despite concerns, the broader construction sector outlook remains positive. The continued exemption for residential projects helps ensure housing affordability remains relatively stable. Moreover, data centre developments — a key growth driver — are expected to proceed, even with the additional tax cost. For example, a 6% services tax on a RM1 billion data centre project would translate to RM60 million, a marginal figure for global tech firms like Google and Microsoft.

RHB maintains its “Overweight” stance on the construction sector, citing resilience in key areas and strategic exemptions that cushion the impact on essential housing and infrastructure. Overall, while the revised SST introduces higher tax exposure in some segments, the residential housing market is expected to remain insulated.

About Central Residence

A residential project in Jelutong, located on 1.2 acres of land along Lorong Madrasah, directly opposite Jelutong Palace apartment. Just 5 minutes from the Penang Bridge and a short drive from the Jalan Ahmad Nor/Tun Dr. Lim Chong Eu interchange, this 35-storey condominium offers 298 residential units and includes a 10-level car parking podium.

Find out more about Central Residence

Penang Chief Minister Chow Kon Yeow has instructed state Housing Committee chairman Datuk Seri S. Sundarajoo to review the housing discount policy announced for Indian Muslims, with the intention of expanding the initiative to benefit all homebuyers.

The directive follows public feedback regarding the recent announcement of a five per cent discount for first-time Indian Muslim homebuyers on unsold completed units. Chow said the feedback suggested that such incentives should be extended to all buyers to help rejuvenate the property market, especially in addressing the issue of overhang units.

“The goal is to ensure the policy is more inclusive and aligned with the principles of social justice,” Chow stated, adding that Sundarajoo is expected to work with developers to explore broader implementation.

The state executive council (exco) will deliberate on the policy in an upcoming meeting and make a final decision that serves the interests of all communities.

Sundarajoo had earlier clarified that the discount does not apply to Bumiputera quota units or alter existing housing policies. He said the initiative aimed to encourage greater homeownership among underrepresented groups, without infringing on the rights of others.

The policy announcement sparked criticism from human rights lawyer Rajesh Nagarajan, prompting Penang DAP chairman Steven Sim Chee Keong to raise the issue with Chow. Sim reaffirmed the state’s commitment to ensuring fair access to housing for all Malaysians.