Four new acts to drive Malaysia's National Housing Policy reforms 2026-2035

Malaysia's Ministry of Housing and Local Government (KPKT) is set to enact significant reforms within the property sector by introducing four new acts under the National Housing Policy (DRN) 2026-2035. These legislative changes aim to establish a legal framework that is more comprehensive, progressive, and equitable for all stakeholders.

The proposed legislation includes the introduction of a new Land Developer Act, a Building Management Act, and a Residential Tenancy Act. Additionally, amendments will be made to the Strata Management Act of 2013. Minister Nga Kor Ming stated that the Land Developer Act will broaden the scope of legal authority beyond residential properties to encompass commercial real estate, including retail spaces and other commercial projects. This move is seen as a crucial step towards achieving developed nation status.

The Building Management Act and the revised Strata Management Act are considered critical, given Malaysia's nearly three million strata property units spread across over 27,000 housing schemes like condominiums and SOHOs. These reforms are vital to address the nation's rapid urbanization, which has reached 78% and is projected to hit 85% by 2040, ensuring building maintenance remains safe and user-friendly.

Furthermore, the new Residential Tenancy Act is designed to balance and protect the rights of both property owners and tenants. Despite global economic shifts, Malaysia's domestic housing market remains resilient, with a high homeownership rate of 77%, significantly higher than in developed nations like Germany (42%), the UK (65%), and the US (66%).

To encourage homeownership among youth, the government offers RM40 billion under the Housing Credit Guarantee Scheme (SJKP) for first-time buyers of homes under RM500,000. An additional RM18 billion is available for gig economy workers and small entrepreneurs. The ministry has also successfully resolved 1,647 "sick" projects worth RM153 billion in the past three years and aims for zero abandoned projects by 2030 through the introduction of an Option to Purchase (OTP) clause by year-end. The DRN, supported by six focus areas, 17 strategies, and 59 action plans, will guide the housing sector's development for the next decade.