Malaysia To Overhaul Four Housing Laws Under New 10-Year Policy

The Ministry of Housing and Local Government (KPKT) will draft three new housing laws and amend the Strata Management Act 2013 under the National Housing Policy (DPN) 2026-2035 to create a more comprehensive and equitable legal framework.

Housing and Local Government Minister Nga Kor Ming said the proposed laws comprise the Property Development Act, Building Managers Act and Rent Tenancy Act, alongside amendments to the existing Strata Management Act.

The Property Development Act is in its final review stage and will broaden existing regulations, which currently focus on housing projects, to also cover commercial real estate such as shop lots.

The proposed Building Managers Act will establish clearer rules for managing Malaysia’s nearly three million strata units across more than 27,000 schemes, while the Rent Tenancy Act is intended to balance the rights and interests of landlords and tenants.

Nga said the Strata Management Act also needs updating as Malaysia’s urbanisation rate has risen from 28% in 1970 to 78% currently and is expected to reach 85% by 2040.

KPKT will also introduce a big data analytics system next year to address mismatches between housing supply and demand by combining data from state governments, local authorities and KPKT at district and locality levels.

“Our main problem is not supply or construction. The real issue is a mismatch. What is being offered is not what is actually needed, and that is why we have property overhang,” said Nga.

The system will help developers assess projects before construction, including property type, location and pricing, while allowing affordable housing definitions to vary according to local income levels.

“As the saying goes, one size does not fit all. Imagine if the price of affordable housing in Kuala Krai, Kelantan, was the same as in Bukit Bintang, Kuala Lumpur. That would not make sense at all,” he said.

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