Nga Kor Ming, Minister of Housing and Local Government
Contributed by Nga Kor Ming
Malaysia’s economy is back on a strong growth trajectory, marking a new chapter of prosperity and growth under the Madani governance. With a 5.2% expansion in the first nine months of the year, the nation has exceeded expectations, reinforcing its position as a dynamic player in Southeast Asia. This momentum has earned rating upgrades from leading global institutions like JP Morgan, Goldman Sachs and Nomura, signaling growing confidence in our nation’s economic prospects. As the country continues to navigate the complexities of geopolitical uncertainties, its economic momentum is opening doors to new opportunities, particularly in key sectors like property development, infrastructure and urban planning.
The symbiotic relationship between economic health and property development has never been more apparent. Strategic measures such as increasing civil servant salaries and minimum wages have injected more disposable income into households. This, in turn, has driven demand for housing and spurred growth across related sectors like property development and interior design. Apart from residential properties, the Ministry of Housing and Local Government through PlanMalaysia also introduced the Planning Guideline for Data Centre earlier this year as part of the country’s ambition to become the Artificial Intelligence (AI) regional hub. This move is set to further attract substantial foreign direct investment (FDI), driving economic growth while revitalising the construction and property sectors.
Strengthening positive momentum
At the start of the year, the ministry set an ambitious target for property transactions to exceed RM100bil in total value. However, we managed to surpass this goal within the first six months of the year, signaling a strong market confidence. According to the National Property Information Centre (Napic), property transactions in the first half of 2024 surged by 8% to 198,906 units, with a corresponding 23.8% increase in value to RM105.65bil compared to the same period in 2023. Meanwhile, unsold residential properties declined significantly, standing at 22,642 units valued at RM14.24bil, down from 25,816 units worth RM17.68bil in 2H2023.
Our commitment to tackling the property overhang and delivering affordable housing has been equally remarkable. Since December 2022, 862 private housing projects encompassing 102,808 residential units have been completed, contributing RM85.82bil in gross development value (GDV). Under the 12th Malaysia Plan, we are well on track to achieving our target of 500,000 affordable housing units by the end of 2025, with 89% of the houses already completed and approved.
Looking ahead to 2025, we aim to sustain this momentum with targeted policies to boost first-time house ownership. These include an additional RM10bil allocation for the Housing Credit Guarantee Scheme (SJKP) and individual income tax relief of up to RM10,000 annually on housing loan interest payments. These initiatives, targeted at first-time homebuyers, would ensure broader accessibility to homeownership.
Revitalising dilapidated urban areas
Meanwhile, we are on a mission to breathe new lives into old dilapidated areas by tabling the proposed Urban Renewal Act in 2025. The proposed legislation aims to reduce the required consent for redeveloping dilapidated buildings from the current 100%. It suggests lowering the approval threshold to 80% for properties less than 30 years old, 75% for properties over 30 years old and 51% for properties that are deemed unsafe or abandoned.
Through this proposed act, we aim to replicate and facilitate more urban renewal success stories, such as the rejuvenation of the Zhongshan Building and Rex Cinema in Kuala Lumpur as well as heritage conversions in Georgetown, Penang. In these cases, heritage buildings blend seamlessly with modern establishments, creating a vibrant urban landscape while preserving our cultural heritage. It is important to note that the proposed act prioritises the protection of property owners' rights
while enabling fair negotiations for redevelopment, supported by a governmental mediator to resolve any arising disputes.
Malaysia paving the way for global leadership
As Malaysia assumes the Asean Chairmanship in 2025, the Ministry of Housing and Local Government is set to host prominent events such as the Asean Property Summit 2025 and the Asia-Pacific Conference on Housing and Urban Development (APMCHUD). Earlier this year, we made history by integrating Archidex with the Asean-China Ministerial Roundtable on Construction and Housing, where we successfully attracted over 40,000 visitors from 15 countries and achieved RM1bil in sales transactions. We are also set to host the Asean Sustainable Urbanisation Forum, the Asean Mayors Forum, and the 8th Asean Smart Cities Network Annual Meeting.
In addition, Malaysia is bidding for the UN-Habitat Assembly Presidency for 2026–2029, aiming to strengthen its global influence on sustainable development. Notably, Malaysia has achieved 43% of the SDG indicators, far surpassing the global average of 17%. Earlier this month, our capital, Kuala Lumpur, was also chosen by UN-Habitat to host a digital platform that will assist countries in the Asia-Pacific Region with their progress in implementing the New Urban Agenda. These efforts highlight Malaysia’s commitment to leading by example, particularly through its affordable housing initiatives and the rebranding of the People’s Residency Program, which integrates green building features.
As we embark on the next chapter to elevate Malaysia’s status on the international stage, I urge all stakeholders to embrace a whole-of-nation approach, which I call the 4P Model – People-Public-Private Partnership. By coming together and working collaboratively, we can ensure that no one and no place is left behind as we pursue sustainable development amid rapid urbanisation. Together, let us step into this new era, unlocking Malaysia’s potential to lead and inspire on the global stage.
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