20/05/2026

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WEDNESDAY | MAY 20, 2026

‘Housing reform to focus on quality affordable housing’

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

KUALA LUMPUR: Malaysia is building homes priced beyond what most Malaysians can afford, contributing to the country’s growing residential housing overhang. Deputy Economy Minister Mohd Shahar Abdullah ( pic ) said Malaysia must directly confront the affordable housing mismatch. “The market is telling us some thing clear. The mismatch is not in demand. The mismatch is in what is being built versus what most Malaysians can actually afford,” he said in his keynote address at Malaysia Building & Property Summit 2026 yesterday. Mohd Shahar said that

He said 13MP will also place greater emphasis on catalytic regional development and infra structure integration, particularly through projects such as the Johor Singapore Special Economic Zone, MRT3, the East Coast Rail Link and the Pan Borneo Highway. According to him, projects aligned with national spatial, environmental and social priorities will receive stronger government support through faster approvals, infrastructure co ordination and financing facilitation. Mohd Shahar said public-private partnerships (PPP) will become increasingly important as fiscal space tightens. “Public-private partnership becomes essential, not optional. This is not a retreat from the government’s role; it is a recalibration. PPP frameworks under RMK13 (13MP) would be strengthened across affordable housing, transit-oriented developments, urban regeneration and brownfield redevelopment.” Mohd Shahar highlighted the growing importance of technology adoption across the property and construction ecosystem, including Building Information Modelling, Industrialised Building System (IBS), proptech and AI-driven solutions. He said the government will continue supporting proptech and IBS adoption through targeted incentives, including Green Invest ment Tax Allowance incentives and AI-related deductions announced

under Budget 2026. At the same time, he said, Malaysia must gradually reduce its dependence on low-skilled foreign labour within the construction sector through greater automation, tech nical and vocational education and training expansion and workforce upskilling initiatives. “Every low-skilled foreign worker represents a remittance outflow from our economy. Conversely, every upskilled Malaysian construction professional represents productivity that stays in the domestic economy,” Mohd Shahar said. The summit, themed “Powering Smart and Sustainable Development in the New Geoeconomic Era” discusses how Malaysia’s building and property sectors could adapt and thrive in an increasingly complex global en-vironment. Speaking at the summit, Tan Sri Michael Yeoh, president of KSI Strategic Institute for Asia Pacific and moderator for the technology session, said the property and construction sectors are entering a defining period of transformation. “The future of the building and property industry will depend on how effectively we integrate sustain ability, technology and human centric development. MBPS 2026 demonstrated that industry leaders are prepared to rethink traditional models and work collaboratively towards smarter and more resilient growth,” he added. dividend of 16 sen per ordinary share amounting to RM316.6 million, payable on June 23. On prospects, PGB expects to remain resilient in 2026, notwith standing margin pressures, parti cularly in the utilities segment, due to higher fuel gas prices amid ongoing global geopolitical uncertainties. It said contributions from the gas transport, regasification and gas processing segments are expected to continue providing earnings stability, underpinned by the regulated framework and stable long-term contracts. “Nevertheless, PGB remains attentive to potential indirect im pacts from geopolitical develop ments, including inflationary pres sures and supply chain disruptions. “PGB remains committed to strengthening operational resi lience, commercial excellence and cost optimisation, while continuing to pursue long-term strategic growth to sustain earnings quality for all shareholders,” PGB added. – Bernama

o Deputy Economy minister calls on building and property sector to work with government to help overcome mismatch

to RM258) per barrel to roughly US$87 in recent weeks. The fuel subsidy bill is under significant pressure, and the government has initiated an expenditure review to maintain fiscal discipline.” Mohd Shahar said rising steel, cement, transport fuel and site equipment costs were already placing pressure on industry margins. “In fact, the World Bank forecasts overall commodity prices to rise by around 16% in 2026. Margins will be tested.” He added that public-sector projects will be prioritised more selectively going forward, with stronger focus on projects capable of generating measurable economic and social returns. “It also means the public sector project pipeline will be sequenced more tightly, with sharper prioritisation of catalytic projects that demonstrate mea surable returns.” Despite the near-term pressures, Mohd Shahar described the current challenges as a “temporary deviation rather than a structural break” as Malaysia’s financing conditions, domestic demand and investment pipeline remained resilient.

tightening worldwide, and the building and property industry sits at the centre of how Malaysia res ponds.” Mohd Shahar said the construction industry contributes between 3.5% and 4.5% to Malaysia’s gross domestic product and has broad spillover effects across steel, cement, transport, urban development and house

as of the first quarter of 2026, Malaysia held 32,801 unsold, completed resi dential units, valued at RM16.37 billion. “The ser viced apartment segment alone accounts for nearly 19,263 of those units, with close to 60% priced between RM500,000 and RM1 million.” He said housing reform will be one of the priorities

under the 13th Malaysia Plan (13MP), with the government focusing on increasing the supply of quality and inclusive affordable housing, improving home financing access and strengthening housing regulatory efficiency. The property and construction industry will play a critical role in supporting Malaysia’s economic resilience amid a more challenging global environment shaped by geopolitical fragmentation, rising energy prices and tighter fiscal conditions worldwide, he added. “We meet at a critical juncture when global energy markets are unsettled, fiscal conditions are KUALA LUMPUR: The Inland Revenue Board of Malaysia (IRB) has reminded individuals running businesses to exercise due diligence when sub mitting claims for business expenses via the income tax return form or Form B. IRB Corporate Services Department senior executive II Mohamad Nasir Mohamed Nazri said not all expenses can be claimed as business costs, as only those directly related to business operations and activities are permitted. “Those involved are advised to be mindful in separating business and personal expenses to prevent any errors in submitting and reporting their respective income. “Accurate compliance in tax reporting is important to ensure the assessment process runs smoothly and to avoid enforcement action in the future,” he told reporters after appearing as a guest on Bernama Radio’s Tax Clinic programme yesterday. Mohamad Nasir said allowable expenses have certain characteristics,

hold wealth creation. He noted that Malaysia entered 2026 from a position of strength, supported by robust 5.2% economic growth in 2025, stable inflation of between 1.5% and 2%, un employment of about 2.9% and a stable Overnight Policy Rate of 2.75%. However, rising geopolitical tensions and disruptions to global energy flows were beginning to place pressure on public finances and construction costs, he said. “The conflict in the Middle East and the disruption to global energy flows have moved Brent crude prices from Budget 2026’s working as sumption of US$60 to US$65 (RM238 including that they must be definite and actually incurred, and may not always involve cash outflows, such as giving product samples to customers and losses resulting from employee misconduct. “In addition, the expenses must be incurred wholly for the purpose of generating income, such as employee salaries, the purchase of raw materials or business stock, premises rental, business licence renewals and utility bills. “Claims can also be made for expenses incurred during the business period within the same year, even if they have not yet been paid, such as purchases on credit, as well as expenses incurred to generate gross income even if the income has not yet been earned in the same year,”he said. Regarding disallowed expenses, Mohamad Nasir said these include personal expenses, owners’ salaries, capital expenditure, the purchase of business assets, start-up costs, depreciation, personal cash or stock withdrawals, travel costs from home to business premises, as well as

IRB urges proper declaration of business expenses in tax returns

Petronas Gas posts RM438.6m Q1 net profit, declares 16 sen dividend

KUALA LUMPUR: Petronas Gas Bhd (PGB) posted a lower net profit of RM438.68 million in the first quarter ended March 31, 2026 (Q1’26), down from RM468.79 million in the corresponding period last year, in line with lower gross profit, coupled with lower profit generated from fund investments. In a filing with Bursa Malaysia yesterday, PGB said revenue for the quarter slipped 0.6% to RM1.58 billion from RM1.59 billion in the same period a year ago. The group said the lower revenue was mainly attributable to lower revenue from the utilities segment due to lower product prices. “This impact was cushioned by higher revenue from the gas transportation segment following upward tariff adjustment and increased contribution from the regasification segment arising from liquefied natural gas storage services at Pengerang, Johor, which commenced in August 2025,” it said. PGB announced a first interim

penalties and fines. He said tax calculations differ from business profit and loss statements, noting that any losses incurred can be carried forward to the following year and deducted from future profits. Meanwhile, Mohamad Nasir reminded taxpayers to submit Form B or e-B for Year of Assessment 2025 by July 15 through the e-filing service on the MyTax portal. He said failure to submit and report income within the specified period could result in individuals being prosecuted in court, as well as being subject to a business audit. – Bernama