KUALA LUMPUR — The Housing and Local Government Ministry has proposed lowering tax rates for building owners and management bodies to promote the adoption of green building practices. The proposal, submitted to the Finance Ministry on Thursday, aims to make green certification more appealing and financially sustainable.
Minister Nga Kor Ming emphasized that green practices should be seen as investments rather than additional costs. "Buildings that consume less energy and water, manage resources more efficiently, and provide healthier environments can reduce long-term operating and maintenance costs," he said during the Malaysia Property Expo 2026.
Nga also announced plans to establish a dedicated division within the ministry to oversee and coordinate green building rating systems, encouraging more property owners to pursue green certification. As part of this initiative, the ministry recently set an example by obtaining both the GreenRE Gold Rating and Gold Energy Certificate for its 38-storey headquarters, marking the first ministry building in Malaysia to achieve these recognitions.
In addition to supporting sustainable developments, the ministry is advancing efforts to improve housing affordability. Beginning next year, a data-driven approach will be introduced to assess housing affordability, replacing the current one-size-fits-all benchmark. This method will consider local income levels and purchasing power to better reflect regional differences. "The price of a house in Bukit Bintang, Kuala Lumpur, cannot be measured using the same affordability benchmark as one in Tanah Merah, Kelantan," Nga explained.
The approach will also help identify locations for affordable housing based on demand factors such as employment opportunities, public transport access, and proximity to essential amenities. Nga highlighted the need for a holistic view of affordability, noting that "a house may be affordable on paper, but if a family has to spend hundreds of ringgit more every month travelling to work, then it is not truly affordable."
The government is also expanding access to home financing for entrepreneurs, freelancers, gig workers, and the self-employed, groups traditionally excluded due to lack of conventional payslips. The Housing Credit Guarantee Scheme has already assisted more than 97,000 first-time homebuyers with financing up to RM500,000. The ministry aims to extend this support to 100,000 beneficiaries by the end of the year and is working to involve more banks in the scheme.
Addressing concerns over stalled or troubled private housing projects, Nga said the ministry is pursuing legal reforms to mitigate risks of project delays and abandonment. Proposed measures include a Real Property Development Act, Building Managers Act, Rental Tenancy Act, and amendments to the Strata Management Act. "Prevention is always better than cure," Nga noted.
He concluded that a robust property sector should not be judged solely by transaction values or prices, but by its capacity to provide better homes and improve quality of life.