KPKT’s bold housing agenda and global ambitions

After two years of tireless effort, Malaysia’s Housing and Local Government Ministry (KPKT) is slowly but surely achieving what once seemed impossible – resolving sick and abandoned private housing projects, restoring shelter and dignity to home buyers.

Aside from strengthening legal frameworks, the Madani government has also intensified efforts to address many longstanding issues regarding the property industry, says Housing and Local Government Minister Nga Kor Ming.

“As of March 2025, the ministry through the Taskforce on Sick and Abandoned Private Housing Projects, had successfully rescued 1,044 private housing projects nationwide, with a combined value of RM100.1bil, benefiting nearly 125,000 home buyers,” he told StarBiz 7 during an exclusive interview during the 10th Anniversary of the StarProperty Awards 2025 Gala Dinner on May 15, 2025.

Among the key turnarounds are the troubled PR1MA projects, of which KPKT inherited 34 in a sick state. “So as of today, we have solved 31. Only three more to go and I am pretty confident by the end of this year, PRIMA will have no more sick projects. We can open a new chapter and start afresh,” he enthused.

Nga said these were not just numbers but families whose lives have been on hold. “Now, they can finally move into the homes they paid for.”

The minister noted that more initiatives are slated to be implemented, beginning with a major policy initiative to be revealed during the Asean Real Properties Conference in July this year. The initiative aims to eradicate abandoned housing projects by 2030.

“This will be a new milestone because we believe the time is right to safeguard the rights and interests of innocent home buyers who have spent their lifetime savings. At the same time, we also want to protect the reputation of our real estate industry,” he said, adding that Malaysia has many outstanding developers who have made the country proud by winning at least 35 World FIABCI gold awards.

“In this respect, KPKT will also take stern action against unscrupulous developers who are ruining the reputation of the industry,” added Nga.

Curbing abuse, strengthening governance

One core reform is the stricter control over the use of money from the Housing Development Account (HDA).

Nga highlighted past cases where some developers diverted funds from one project to finance others, causing a chain reaction of project failures.

To prevent this, KPKT will enforce stricter rules ensuring that funds collected for Project A can only be used for that specific project. The unethical practice of rotating cash flows across multiple developments will no longer be tolerated.

KPKT is also working on the Real Property Development Act to replace the narrow Housing Development (Control and Licensing) Act 1966.

The new law would regulate a broader swathe of property types including serviced apartments, Small-office-Versatile-office (SoVo), Small-office-Flexible-office (SoFo) and commercial units, reflecting the realities of modern urban development.

These are hard lessons from the nation’s past and Nga’s ministry is now building a comprehensive, modern and people-centric property governance system.

Urban renewal and political warnings

Equally critical is the upcoming tabling of the long-awaited Urban Renewal Act in Parliament this June. The Act will provide legal and financial frameworks to redevelop Malaysia’s aging, unsafe housing stock.

“DBKL has identified 139 urban renewal sites in Kuala Lumpur with an estimated gross development value (GDV) of RM355.3bil. Just two weeks ago, we conducted an expedition with Members of Parliament to inspect several dilapidated buildings firsthand. What we witnessed was deeply concerning.

“Some housing areas were in alarming condition with mould infestations, damaged rooftops, broken lifts and other serious structural issues.

“We have seen so many dilapidated, poorly maintained, even dangerous ageing buildings, which are not fit for human settlement anymore,” he said while issuing a direct warning to politicians.

“Do not politicise this. The biggest losers will be the B40 families. For those politicians who try to politicise the issue, we strongly advise them to bring their families to stay at these poorly maintained, dilapidated flats before they try to politicise and sacrifice public interests,” he said.

A global stage for Malaysian urban policy

On a lighter note, Nga said the nation may again shine on the global stage.

This May 30, KPKT will represent Malaysia in its bid to chair the United Nations Human Settlements Programme (UN-Habitat) General Assembly, a feat that has not been replicated for 30 years.

Only two Malaysians have ever led a global body.

Prime Minister Datuk Seri Anwar Ibrahim at Unesco in 1994 and Tan Sri Razali Ismail at the UN General Assembly in 1996.

Now, under the Madani government, Malaysia has the support of global superpowers including China. If elected, Malaysia will help shape global housing and sustainability policy, Nga said.

KPKT’s recent recognition as Malaysia’s best-performing ministry and its National Development Award win, underscore its momentum.

“We’re humbled by the recognition,” said Nga, noting that although recognition was given to KPKT’s achievement, the work continues.

“Houses aren’t built with just bricks and beams, they’re built with hopes and dreams.”