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Malaysia to Use Big Data Analytics to Solve Housing Mismatch
🇲🇾 Malaysia /Economy & Trade

Malaysia to Use Big Data Analytics to Solve Housing Mismatch

From Utusan Malaysia · () Malay

Translated from Malay, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Malaysia's Housing Ministry will use Big Data Analytics starting next year to address the mismatch between housing supply and demand.
  • The initiative, part of the National Housing Policy 2026-2035, aims to ensure developers build homes that meet local needs.
  • The ministry also reported success in reviving 1,647 "sick" or abandoned housing projects, valued at RM153 billion, benefiting 200,000 buyers.

Malaysia's Ministry of Housing and Local Government (KPKT) is set to implement Big Data Analytics from next year to tackle a critical issue in the nation's housing sector: the mismatch between the types of homes being built and what citizens actually need.

The products offered are not the products needed. That's why some properties are not selling.

— Nga Kor MingExplaining the core issue of housing mismatch in Malaysia.

Minister Nga Kor Ming announced that the ministry has received approval from the Ministry of Finance to roll out this data-driven initiative under the National Housing Policy 2026-2035. He explained that the core problem is no longer just about the quantity of houses but the unsuitability of the available properties for specific localities. "The products offered are not the products needed. That's why some properties are not selling," Nga stated.

Big Data Analytics will provide developers with crucial data for each locality, region, and state before they embark on new projects. This ensures feasibility studies are data-informed, leading to developments that align with buyer requirements. The ministry is also focusing on resolving the persistent problem of "sick" and abandoned housing projects, which have been a significant concern for buyers and the property industry.

They can refer to that data so they know the feasibility study is driven by data.

— Nga Kor MingDescribing how Big Data Analytics will inform housing development.

KPKT has reported a notable success in reviving 1,647 abandoned projects over the past three years, a recovery valued at RM153 billion and impacting 200,000 homebuyers. The ministry aims to eliminate abandoned housing projects entirely by 2030 through the implementation of the Madani Housing Reform. A key mechanism being introduced is the "Option to Purchase" (OTP) clause, which allows either developers or buyers to withdraw from a sale under specific conditions if a project is deemed risky or if the buyer has second thoughts. This clause ensures that buyers receive a full refund of their deposit, including bank interest, if they or the developer decide to pull out within a stipulated period. Developers can also withdraw if sales are unsatisfactory, preventing them from becoming failed projects. Nga believes this mechanism will be fair to both parties and significantly reduce the number of abandoned developments.

So this mechanism is fair to both parties and I am confident that the OTP clause will greatly help reduce abandoned projects.

— Nga Kor MingOn the fairness and expected impact of the Option to Purchase clause.
DistantNews Editorial

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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