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THURSDAY | JULY 24, 2025

Transforming Asean’s urban landscape KUALA LUMPUR: As Asean grapples with intensifying demand for housing and global economic volatility, Malaysia is stepping forward with a bold urban leadership agenda. o Malaysia intends to lead housing and urbanisation agenda with innovation, inclusivity and collaboration, says Nga Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com latory standards. At the same time, escalating land and construction costs are rendering cities increasingly unaffordable – even as urban centres remain vital economic engines. Globally, capital is being reallo First, he proposed institution alising a Regional Housing Policy Lab to support data-driven policymaking and best practice sharing. Second, he recommended de

veloping an Asean Urban Progress Dashboard to track affordable housing delivery and carbon re duction metrics. Finally, he called for Arec to be held annually under the rotating Asean chair to ensure continuity and foster deeper collaboration. As president of the UN-Habitat Assembly, Nga reaffirmed Malaysia’s commitment to fully implementing the New Urban Agenda, describing it as a blueprint for “dignified homes for the 90 million urban citizens joining us by 2030”. He stressed that the future of housing must be anchored on three pillars – people-centred smart cities, climate-responsive design and inno vative financing models. “Let us stop quoting the New Urban Agenda and start imple menting it – street by street, home by home,” he urged. “From Jakarta to Hanoi, Bangkok to Manila, our fates are intertwined. Housing is not just about bricks and mortar. It’s about dignity, stability, and building an Asean that endures,” Nga concluded. As the week-long events continue at the Kuala Lumpur Convention Centre and the Malaysia Inter national Trade and Exhibition Centre, Malaysia is using its moment on the regional stage not only to showcase its design and infra structure capabilities, but also to craft a forward-looking narrative centred on urban resilience, innovation and cooperation. Held under Malaysia’s Asean chairmanship and in conjunction with the Kuala Lumpur Architecture Festival, the events are expected to attract more than 56,000 inter national visitors from 110 countries. Featuring 850 exhibitors across 36,700 square metres, this dual gathering is more than a celebration of design – it is a strategic platform positioning the region’s real estate sector as a critical growth engine in an era of mounting uncertainty.

cated as investors recalibrate risk amid growing geopolitical fragment ation. Despite these headwinds, Nga believes Asean is well-positioned to adapt. He pointed to the region’s historical resilience, noting that Asean’s combined gross domestic product has grown from US$23 billion in 1967 to US$3.8 trillion in 2023. “The question is no longer if change will come – it’s about who will lead it, and how quickly. Malaysia intends to lead with innovation, inclusivity and regional collabora tion,” he said. Highlighting Malaysia’s rent-to own (RTO) housing scheme as a model that balances affordability with aspiration, Nga noted that the country currently boasts a home ownership rate of 77%, with plans to increase this to 80% by 2030. Still, he acknowledged that home ownership is no longer the sole benchmark of stability for younger generations. “There’s a quiet revolution unfolding. Millennials and Gen Z across Asean are redefining what ‘home’ means. In Kuala Lumpur, 43% of individuals under 35 now prefer the flexibility of renting over owning a home through long-term mortgages. “They’re not rejecting stability – they’re demanding mobility, access and financial headroom,” he said. Citing Vienna, Austria, where 80% of residents rent high-quality social housing, Nga emphasised the urgent need to enhance Asean’s fragmented rental landscape. Malaysia’s RTO model, he added, serves as a bridge between leasing and eventual ownership, delivering both affordability and upward mobility. To carry Arec’s momentum forward, Nga outlined three key ini tiatives.

younger buyers to delay home ownership. Meanwhile, the ringgit, which slumped to 4.80 against the US dollar earlier this year, has only recently begun recovering, further compli cating materials procurement and project costing. “These shocks are not transient. Just as the 2008 financial crisis per manently reshaped global banking, today’s disruptions will fundamentally change how we build and finance real estate,” Nga noted. He also underscored the need to confront long-term structural shifts. Green features, once considered premium, have now become regu

Building Exhibition (Archidex), the region’s largest built environment trade fair yesterday. Nga called on stakeholders to rethink conventional development models, as Asean’s property markets continue to be reshaped by currency fluctuations, volatile construction costs and rising energy prices. These forces, he said, are already leaving their mark across the region, with property sales declining 6% year-on-year. In Vietnam, luxury condominium prices have fallen by 8% due to inventory oversupply, while Singapore’s rental prices recorded an 18% spike as economic uncertainty prompted

Housing and Local Government Minister Nga Kor Ming said the region is now at the crossroads of three critical challenges – the intensifying housing trilemma, persistent geoeconomic shocks and a looming demographic surge. “Within these challenges lies Asean’s extraordinary opportunity. Our region is urbanising at an unprecedented pace. By 2045, 65% of Asean’s population will live in cities. “This means we must build not just homes, but entire futures – equitable, sustainable and inclusive,” he said at the Asean Real Estate Conference 2025 (Arec 2025) and the Architecture, Interior Design and

Nga speaking at the launch of Arec 2025 and Archidex yesterday. – BERNAMAPIC

Domestic demand will remain key driver of M’sian GDP growth: Amro SINGAPORE: Malaysia’s economy continues to demonstrate resilience in 2025, underpinned by strong domestic demand, robust investment activity and favourable labour market conditions, despite pressures from global trade tensions and policy uncertainty. indirect effects through intermediate goods sent to other countries des tined for the US, and the broader slowdown in global trade growth. Nonetheless, domestic demand will remain the key driver of growth,” he told Bernama. remains clouded by external head winds, particularly the outcome of ongoing US trade negotiations. “Regionally, the Johor-Singapore Special Economic Zone (JS-SEZ) could emerge as a strategic advantage, catalysing cross-border investment and innovation. “US tariffs could enhance the JS value proposition and political backing can attract foreign investors looking to establish a base in Asean,” He said. He noted that for the JS-SEZ to succeed, several challenges must be tackled, including cross-border

To maintain momentum, He said Malaysia’s policy priorities should include sustained diplomatic engage ment with the US on trade issues, diversification of export markets, and greater emphasis on the services sector, which is typically less exposed to protectionist measures. He added that accelerating struc tural reforms remains essential, especially through the implemen tation of the New Industrial Master Plan 2030 and the National Energy Transition Roadmap.

movement of people and goods, infrastructure in southern Johor, wage gaps, labour shortages, and policy continuity, among others. “If successful, the JS-SEZ can serve as a blueprint for future regional integration initiatives. For example, it could inspire similar cross-border economic zones between Thailand and Laos or Vietnam and Cambodia,” he said.

SEZ’s appeal, particularly if Singapore faces much lower tariffs than countries like Vietnam and Mexico,” He said. He added that the strong commit ment to collaboration demonstrated by both the Singaporean and Malaysian governments boosts confidence in the zone’s prospects, particularly in a volatile global environment shaped by rising protectionism. “Together, the zone’s economic

He noted that front-loaded exports had supported economic momentum earlier in the year. At the same time, key sectors such as information and communication technology and manufacturing remain active, bol stered by data centre investments and industrial diversification. However, the outlook for the second half of the year and beyond

Asean+3 Macroeconomic Research Office (Amro) chief economist Dong He stated that if the United States’ reciprocal tariffs take effect from Aug 1 at the current rate of 25%, Malaysia’s gross domestic product growth could fall from 5.1% in 2024 to 4.2% in 2025, and further to 3.8% in 2026. “This reflects the direct impact on Malaysia’s exports to the US, the