The Housing and Local Government Ministry is in the final stage of drafting the proposed Real Property Development Act, a new law aimed at strengthening the regulation of Malaysia’s property sector.

Housing and Local Government Minister Nga Kor Ming said the proposed legislation would expand regulatory oversight beyond residential developments to include selected commercial property projects, while maintaining a balanced approach that safeguards both industry players and consumers.

Speaking at the AREC Forum 2026: Rethinking Real Estate: Housing With Hearts, Nga said the proposed Act is one of five key housing reforms introduced by the ministry to improve governance, transparency and efficiency within the property sector.

The other initiatives include the electronic Sale and Purchase Agreement (eSPA), the Housing Integrated Management System (HIMS), the National Property Data System, and regulated housing development accounts. Collectively, these measures are intended to enhance oversight of property developments and support the government’s goal of eliminating sick and abandoned housing projects by 2030.

Nga also highlighted the progress of the Housing Credit Guarantee Scheme (SJKP), which has helped more than 95,000 first-time homebuyers secure financing. Of the RM40 billion allocation under the scheme, RM22 billion has been utilised, with participation from more than 17 financial institutions. The ministry is targeting 100,000 beneficiaries under the programme.

Malaysia’s homeownership rate currently stands at 77%, and the government aims to increase it to above 80%. Nga described homeownership as not only providing shelter for families but also serving as a means of wealth creation and long-term financial security.

The forum also featured China’s Minister of Housing and Urban-Rural Development Ni Hong and Sime Darby Property Group managing director and chief executive officer Datuk Seri Azmir Merican. The session was moderated by United Nations Human Settlements Programme (UN-Habitat) executive director Datuk Seri Maimunah Mohd Sharif.