Real estate sector on track for healthy year
With most property developers delivering earnings broadly in line with expectations in the recently concluded results season...
The clause is being studied under the proposed Real Property Development Bill, said Nga Kor Ming.
The Housing and Local Government Minister said the OTP clause would provide both buyers and developers the flexibility to withdraw before executing a Sales and Purchase Agreement.
“This move lowers unnecessary financial and legal commitments at an early stage, allowing developers to assess a project’s feasibility by understanding the realistic, on-the-ground demand.
“This will help avoid scenarios where developers face financial bottlenecks if sales are not optimistic halfway through construction,” he said in his speech at the 2026 StarProperty Awards yesterday.
With the new clause, the government can proactively prevent sick, delayed, or abandoned projects, as well as unsold units due to a lack of buyers, he said.
The ministry, he said, has a clear goal of achieving zero sick projects by 2030.
Since December 2022, the special task force on Sick and Abandoned Housing Projects has successfully revived over 1,500 projects with a gross development value of over RM140bil, restoring the hopes of more than 176,000 homebuyers.
To further protect buyers, Nga said the government was accelerating the digitalisation of its regulatory processes to implement mandatory, real-time audits of Housing Developer Accounts.
Meanwhile, to combat rising construction costs due to conflict in the Gulf, Nga announced the upcoming rollout of a “Rahmah Cement” initiative.
Partnering with the Cement and Concrete Association of Malaysia, the initiative will be targeted at all affordable housing projects priced at below RM300,000 per unit. More details will be announced soon.
Nga also said that, despite global headwinds, Malaysia’s property market achieved a historic milestone last year, with transactions exceeding RM240bil – the highest in a decade.
On the broader economy, Nga said the government was leveraging Malaysia’s position as a net energy exporter to build a robust fiscal buffer against global uncertainties.
By rationalising operating expenditures, the government can save RM10bil, which will be redirected into critical sectors and used to maintain targeted subsidies.
Nga also called on the public to help safeguard the nation’s political stability.
“We must firmly reject divisive and extreme rhetoric.
“Only then can Malaysia continue to inspire confidence among international investors,” he added.
