KUALA LUMPUR: Civil servants can expect increased allocation and higher eligibility limits in housing loans next year.

Sunway University Business School economics professor Dr Yeah Kim Leng said despite the global and regional economic uncertainty, members of the civil service could anticipate enhanced initiatives in line with the government's efforts to address housing issues.

"We can expect increased allocation and higher eligibility limits for civil servants as part of the government's thrust to tackle the housing affordability issue.

"The (economic) headwinds are not likely to derail domestic growth's momentum due to the favourable external environment, which is expected to continue through 2018" he told the New Straits Times.

Yeah who is also Bank Negara's Monetary Policy Committee external member, was responding to Prime Minister Datuk Seri Najib Razak's tweet today.

Najib on Twitter hinted at new initiatives in the upcoming 2018 Budget, following increased housing loan eligibility and allocation for civil servant under 2017 Budget.

The 2018 budget would be announced next week on Oct 27.

In the same tweet, Najib posted a Budget 2017 infographic which stated the government had increased the housing loan eligibility from RM120,000 to RM200,000, with maximum loan increased from RM600,000 to RM750,000.

Meanwhile, Congress of Unions of Employees in the Public and Civil Services (Cuepacs) had in its wishlist for the government to consider in Budget 2018, suggested the development of three-bedroom houses priced at RM90,000 - RM100,000 for civil servants.

The wishlist which was unveiled on Oct 16, also called for the government to revise federal and housing allowances for civil servants in Sabah and Sarawak, as it had not been done in a long time.

Cuepacs also asked the government to consider bringing down home loan interest rates for civil servants from four percent to one or two percent.