Rajesh Nagarajan said the policy unfairly favoured a specific race and religion which undermined the principles of equality enshrined in the Federal Constitution.

“This initiative is deeply divisive and unacceptable.

“Why is the Penang state government rewarding Indians who are of the Islamic faith and punishing those who are of the Christian, Buddhist, Hindu, Baha’i or Sikh faith? If this is not discrimination, I don’t know what is,” he said in a statement.

He cited Articles 8(1) and 8(2) of the Federal Constitution, which guarantee that all persons are equal before the law and entitled to equal protection, regardless of religion, race, or descent.

Rajesh also took aim at state housing and environment committee chairman S Sundarajoo, accusing him of practising “state-sanctioned racial discrimination” and setting a dangerous precedent.

“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.

He urged the DAP-led Penang government to immediately withdraw the initiative and warned against policies that could deepen racial and religious divisions.

“This is not an apartheid country where certain races are more equal than others,” he added.

Yesterday, Bernama reported that the Penang government would offer a discount to Indian Muslims who purchased residential and commercial units under the MOC, from June 1, 2025, to May 31, 2026.

Sundarajoo said the initiative, approved at a state planning committee meeting on Wednesday, was aimed at boosting home ownership, supporting the approval of strategic new projects, and creating a more inclusive and competitive property sector.