KUALA LUMPUR: The Housing and Local Government Ministry (KPKT) remains committed to strengthening Malaysia’s housing regulatory framework as it intensifies reforms aimed at achieving its target of preventing and ultimately eliminating sick and abandoned developments nationwide by 2030.

Housing and Local Government Minister Nga Kor Ming said the ministry would continue strengthening the regulatory framework through measures such as the proposed Real Property Development Bill, alongside a series of digital reforms designed to better protect homebuyers and improve the sustainability of housing developments.

“That is why we remain committed to strengthening the regulatory framework, such as the proposed Real Property Development Bill, to prevent them from happening in the first place,“ he told reporters at Archidex 2026 and the Asean Real Estate Conference 2026 (Arec 2026) today.

Nga said the ministry is studying the introduction of an option to purchase (OTP) mechanism under the sale and purchase agreement, which seeks to strengthen consumer protection while enabling developers to better assess genuine market demand before committing significant capital to new projects.

“Our reform currently under study is the introduction of an option to purchase mechanism, which seeks to strengthen consumer protection while also enabling developers to better assess genuine market demand before committing significant capital.

“Ultimately, this will help reduce project risk, improve financial sustainability and minimise the occurrence of abandoned developments.”

Nga said the proposed OTP mechanism complements the ministry’s broader Reformasi Perumahan Madani, which includes the Housing Integrated Management System, electronic sale and purchase agreement (e-SPA), Audited Housing Development Account and other digital initiatives.

He added that he is confident the reforms will enable Malaysia to achieve its vision of eliminating abandoned housing projects by 2030.

“We have launched a series of housing reforms, including the Housing Integrated Management System, Electronic SPA and the Audited Housing Development Account. Our latest reform is the OTP clause in the sale and purchase agreement.

“I am confident that with these reforms, the ministry has set a clear vision that by 2030, Malaysia will no longer have abandoned housing projects,“ Nga said.

“As of this morning, KPKT’s Special Task Force has successfully rescued 1,647 housing projects that were previously classified as sick and abandoned. These projects have now been revived with a total gross development value exceeding RM150 billion,” he cited as evidence of the reforms’ progress.

“I am grateful that we have managed to help nearly 200,000 homebuyers, including those at Residensi Hektar in Gombak and many other projects across the country. This demonstrates the Madani government’s commitment to helping the people,“ he added.

Nga said digital transformation within the ministry, coupled with stronger collaboration with industry players, will help prevent homebuyers from suffering financial hardship caused by stalled developments.

“With these systems and the digital transformation that the ministry is implementing together with industry players, we want to ensure that no more families have to endure hardship because of abandoned housing projects.”

Nga said housing today goes beyond providing shelter and should support sustainable, inclusive and resilient communities.

The government, he added, approved more than 511,000 affordable housing units nationwide under the 12th Malaysia Plan, surpassing its target, while Malaysia’s homeownership rate currently stands at about 77%.

Under the 13th Malaysia Plan, the government plans to integrate transit-oriented development (TOD) principles into future public housing projects to improve connectivity to public transport, employment centres, schools, healthcare facilities and other essential amenities.

“We want urban environments that are not only liveable but truly loveable. A liveable city begins with a simple principle that every family deserves access to a quality home at an affordable price. A loveable city goes further. It connects people to employment, quality education, good healthcare and green spaces,“ Nga said.

KPKT is also investing in the renewal of existing public housing by replacing ageing lifts and converting underutilised common areas into children’s libraries and community spaces.

Nga said Malaysia’s property market has remained resilient, citing data from the National Property Information Centre, which showed 416,413 property transactions worth RM241.87 billion were recorded last year, representing a 4.1% increase from the previous year.

“These figures demonstrate resilient market fundamentals and sustained investor confidence in Malaysia’s long-term growth prospects. Nevertheless, challenges such as supply-demand mismatches, unsold properties and abandoned housing projects continue to require decisive policy interventions,“ he said.