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WEDNESDAY | MAY 13, 2026

Investor confidence in M’sian property market still strong o Ministry drawing up measures to cushion impact of rising construction costs on affordable housing projects: Nga

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

KUALA LUMPUR: Rising construction material costs caused by the ongoing conflict in the Middle East have not derailed investor confidence in Malaysia’s property market, which is underpinned by the country’s resilient economic fundamentals, Housing and Local Government Minister Nga Kor Ming said. Nga said Malaysia remains on stable eco nomic footing despite mounting geopolitical uncertainty and increasing volatility in global commodity and supply chain markets, particularly for construction-related materials such as steel, cement and reinforcement bars. “Recognition by international institutions such as JPMorgan, which named Malaysia among the most resilient economies in Asia, has strengthened investor confidence in the local property market,” he said at the preview of the Asean Real Estate Conference (Arec) and Archidex 2026. However, Nga acknowledged that developers are facing growing cost pressures linked to geopolitical tensions in the Gulf region, which have disrupted global supply chains and raised concerns over higher construction material prices. Citing a recent Real Estate and Housing Developers’ Association Malaysia survey, Nga said around 30% of respondents expect a significant impact on the property and construction sectors, while another 43% anti cipate a moderate impact should geopolitical tensions worsen further. He said key building materials such as steel, cement and reinforcement bars remain among the inputs most vulnerable to price volatility if geopolitical tensions persist, potentially placing additional pressure on project costs, margins and affordable housing delivery. In response, Nga said, the Ministry of Housing and Local Government is preparing measures to cushion impact of rising construction costs, including a proposed “Cement Rahmah” initiative for affordable housing projects priced below RM300,000 per unit. “As such, the ministry is taking an initiative and proactive step in partnering up with the Malaysia Cement and Concrete Association to roll out Cement Rahmah initiative for all affordable housing projects priced below RM300,000 per unit.” The initiative aims to offer cement packs below prevailing market prices to help developers manage rising input costs amid heightened volatility in global commodity and KUALA LUMPUR: The real estate sector should support broader economic and nation-building goals instead of focusing solely on profit-driven housing developments, Deputy Finance Minister Liew Chin Tong said. He said the sector should contribute towards addressing wider national challenges, including housing affordability, urban sprawl, talent retention and dependence on private vehicles. “The real estate sector should not see itself as the centre of the universe. Instead, it should see itself as fulfilling broader public purposes within the economy and nation-building process,” he told reporters after officiating the 13th International Real Estate Research Symposium 2026 (IRERS 2026) here yesterday. Liew said Malaysia needs to rebuild its metropolitan system amid massive global shifts and changes unlike anything seen in recent years, including the ongoing oil and supply crisis. “Even if wars were to end tomorrow, the effects will linger much longer than we anticipate. Therefore, we need to address the national vulnerabilities that we face,” he said.

measures to keep inflation in check,” he said. “Combined with direct welfare programmes like Sara and STR, we are working hard to help cushion the impact of the rising cost of living amidst the ongoing tension in the Middle East.” Despite the uncertain external environment, Nga said, the government remains committed to sustaining affordable housing delivery under the 12th Malaysia Plan. Malaysia has surpassed its target of approving and constructing 500,000 affordable homes by achieving 511,544 units as of last year, he added. Nga said the ministry will continue offering fast-track approvals as incentives for developers undertaking affordable housing projects. Against this backdrop, he positioned Arec and Archidex as increasingly important platforms for policymakers, developers, architects and industrial players to exchange ideas and strengthen regional collaboration. Arec 2026 and the 25th edition of Archidex, which will take place from July 29 to Aug 1 at the Malaysia International Trade and Exhibition Centre, are expected to serve as key platforms for regional policymakers, architects, developers and industrial players to exchange ideas and strengthen business collaboration. This year’s Arec will retain its three main segments, forum, business matching and exhibition, while placing greater emphasis on regional resilience, sustainable urbanisation and supply chain cooperation. Themed “Rethinking Real Estates: Housing With Hearts”, the conference aims to encourage industry players to move beyond purely profit driven development models towards approaches centred on community wellbeing and social sustainability. “As president of the UN-Habitat Assembly, Malaysia holds a major responsibility to unite transformative ideas through the 4P principle: People-Public-Private Partnerships, and translate them into local action,” Nga said. Archidex 2026 is expected to be the largest edition in the exhibition’s history, spanning 39,000 sq m with more than 900 exhibitors. global consequences. “And in our own experience, the Asian Financial Crisis in 1997 continues to have lingering effects even today. Therefore, we must be very careful in managing the sector,”he added. At a separate event, Liew said the Ministry of Finance is exploring ways to create a pathway for more semiconductor-related companies, both foreign direct investment-linked and local firms, to be listed on Bursa Malaysia. He said this is because the stock market currently does not fully reflect the country’s industrial strength and capabilities, as Malaysia remains heavily dependent on an FDI-driven model. “It has always been about foreign capital coming into the country, but not enough of it is circulated or recycled domestically,” he said in his keynote address at the Affin Market Outlook 2026 here yesterday. Liew said that creating a path for more semiconductor firms to list is needed to move forward in building a stronger economy and market, especially amid an artificial intelligence boom. – Bernama

Nga delivering his speech at the Arec and Archidex 2026 preview at the Malaysia International Trade and Exhibition Centre yesterday. – BERNAMAPIC

exporter to build a robust fiscal buffer. By concurrently rationalising our operating expenditures, we aim to unlock up to RM10 billions in savings, enabling a strategic redirection of capital into critical sectors,” he said. Nga said the government would continue maintaining targeted subsidy mechanisms, including Budi95 and Budi Diesel, to cushion households and businesses against rising living and operating costs. “We are dedicated to maintaining targeted subsidies, including Budi95 at RM1.99 per litre and Budi Diesel at RM2.15 per litre, while for public transport, RM1.88 per litre, as key ownership, rental or company-provided housing. “Housing can help retain more Malaysians, especially young Malaysian engineers, to continue working in Malaysia’s semiconductor industry,” he said. Liew also said Malaysia needed to explore new models, noting that empty office buildings in Kuala Lumpur could be converted into housing, similar to initiatives seen in Europe and the United States. “We are not only talking about housing for the poor. We are talking about housing for young people and the middle class. “Young people in their 30s should not have to live a life where they commute from Seremban while still effectively working in Kuala Lumpur.” Liew also warned of the risks of property bubbles, saying that assumptions that property prices would continue to rise could have severe consequences. He cited Japan’s property bubble in 1990 and 1991, whose effects lingered for decades, as well as the 2008 Global Financial Crisis, which began as a property-related subprime crisis with major

supply chain markets. Nga said the measure is intended to ease cost pressures on affordable housing developments while ensuring such projects remain financially viable and continue moving forward despite increasingly challenging operating conditions. He also linked the government’s broader economic response to measures aimed at managing inflationary pressures arising from global energy volatility and geopolitical uncertainty in the Middle East. “Furthermore, Madani Government is leveraging Malaysia’s position as a net energy Liew said more housing should be developed within inner cities through ownership, rental or hybrid models to encourage more people to live there and help transform them into 24-hour cities. “What I have mentioned will not happen overnight because what we are seeing today is the result of 50 years of the way we have approached housing development and urban expansion. It may take 10 to 15 years to reverse this trend,” he added. He said Malaysia must also create an environment that is less dependent on private cars, more reliant on public transportation, and focused on people living closer to their workplaces and within inner cities, rather than continuing urban sprawl. Elaborating on the role of the real estate sector, Liew cited Penang as an example, saying developers should not only focus on building housing for foreign buyers but also support the semiconductor industry to strengthen the nation’s economy. “One way is to increase housing stock so that young engineers can live decently, whether through

Think of wider economic goals, not just profits, Liew tells real estate sector