The following commentary on the Budget 2027 wishlist is contributed by Knight Frank Malaysia Group Managing Director Keith Ooi
Wishlist for National Development
- A Unified, Data-Led Affordable Housing Framework
Affordable housing delivery remains fragmented across federal and state schemes, resulting in mismatches between supply location and actual demand. We recommend consolidating existing affordable housing schemes under a single national framework, fully supported by a centralised demand-and-supply data system (leveraging National Property Information Centre and state planning data) to guide pricing and siting decisions. This would reduce the cross-subsidisation burden currently falling on M40 buyers and give developers clearer, evidence-based signals on where to build.
- A Phased, Incentivised Green Building Mandate
We recommend Budget 2027 set a dated pathway toward mandatory green certification (GreenRE, Green Building Index or equivalent) for new residential and commercial developments above a defined threshold, phased in over two to three years and paired with an extended green investment tax allowance to offset the incremental cost of compliance for mid-market projects.
Certified stock in Malaysia remains a small fraction of total built area; a clear mandate, rather than continued reliance on voluntary uptake, would materially improve asset resilience and long-term investor confidence in the sector, while the accompanying tax offset ensures the cost is not simply passed through to buyers.
- A Single, Predictable Stamp Duty Regime for Foreign Purchasers
The current framework, under which foreign buyers face a flat 8% stamp duty nationally but a separate remission applies within the Forest City Special Financial Zone, creates an inconsistent and difficult-to-navigate landscape for international investors. As such, we recommend standardising treatment across the country where a single, clearly published rate and eligibility framework, regardless of zone or Malaysia My Second Home linkage, to give investors certainty and reduce transactional friction. Predictability is a key factor to encourage foreign investment flows into Malaysian real estate.
- A Consolidated JS-SEZ Incentive Rulebook and Connectivity Commitment
With the RTS Link’s completion window now set for 2026-2027, we recommend Budget 2027 commit further last-mile connectivity funding (feeder roads, park-and-ride facilities near Bukit Chagar) to ensure property values near the terminus are supported by completed infrastructure at handover. We further recommend the relevant ministries consolidate the currently piecemeal MIDA incentive releases for the Johor-Singapore Special Economic Zone’s (JS-SEZ) nine flagship zones into a single, Budget-tabled schedule and extend the Real Property Gains Tax relief for non-citizen investors consistently across all flagship zones rather than concentrating it within Forest City alone.
- A Firm Tabling Date and Transparent Consultation on the Real Property Development Act
The proposed Real Property Development Act, which would extend regulatory protection beyond residential developments to commercial and mixed-use projects, has been under consideration since 2024 and remains in drafting as of mid-2026. We recommend the relevant ministry commit to a firm tabling date, accompanied by a public exposure draft, so that the market (purchasers, developers and advisers alike) has clarity on the scope of “mixed development” and the transaction framework (including the proposed Option to Purchase mechanism) well ahead of implementation.
- Temporary Urban Regeneration or Redevelopment Stamp Duty Exemption
Provide temporary stamp duty exemptions or reductions for transactions involving approved urban regeneration or redevelopment projects to encourage urban regeneration.
- Introduction of A Collective/En Bloc Sales Model
Collective sales (en bloc sales), modelled on Singapore’s framework but adapted for Malaysia to address ageing strata developments and urban regeneration. Establish a statutory collective sale mechanism with a prescribed consent threshold depending on the age of the development.
Wishlist for Property Management
- Removal of One-Year Restriction for JMBs to Enter Contracts
To remove one-year restriction for joint management bodies (JMBs) to enter contracts related to maintenance and management of common property. This matter should be dealt with administratively/contractually by JMBs because the one year time period is too short and often lapses unnoticed.
- Re-election of Retiring MC Members
To allow retiring management committee (MC) members completing their third term to be re-elected when there is no voluntary nomination or election from the floor during AGMs. This is to ensure continuity of management without interruption, ie payment to vendors (due to refusal for effecting payment while awaiting the Commissioner of Buildings [COB] to revert to call an EGM etc or appointment of managing agent by COB, etc).
- Service Charge Rate Approval by COB
To consider authorising COB to approve services charge rates where COB may conduct internal research or appoint expertise. Many condos are unable to increase service charges as the power to determine the rate solely relies on approval at the AGM where most times, the decision are emotionally driven. This potentially collapsed the management body when funds deplete/run low.
- Permissibility of Online MC Meetings
Allowing online meetings for MC meetings to avoid long/late night meetings and easier administration for recording of proceedings and minutes taking. Most reputable online meeting platforms, ie Microsoft Teams, Zoom Meeting, Google Meet, etc, feature artificial intelligence tools for administration where it saves a lot of time for the management office team. Also, audio recordings can be additional “prima facie” material rather than only relying on meeting minutes. This also ensures management committee behave and avoid unnecessary provocation or verbal abuse, promoting and instilling respect for all.
