PUTRAJAYA, 20 November 2025 — The Ministry of Housing and Local Government (KPKT) is set to introduce the Real Property Development Bill in June 2026, aimed at replacing the outdated Housing Development (Control and Licensing) Act 1966 (Act 118) and providing a more modern, flexible regulatory framework for both residential and commercial property development.
Housing Minister Nga Kor Ming made the announcement during the “Madani Housing Reform” event, emphasising that the Bill will be part of the Ministry’s five-point reform agenda to be implemented by 2026.
Key Features of the Bill
According to Minister Nga, the main objectives of the Bill include:
- Expanding regulatory scope beyond just residential developments to include commercial properties.
- Updating legal provisions to align with current market-demand and land-types so the framework remains adaptive.
In addition, the Bill proposes higher and standardised penalties for repeat offences, strengthens buyer-protection mechanisms covering payment collection, quality guarantees, and maintenance obligations, and enhances audit and investigation powers to identify troubled property projects early.
Broader Reform Agenda
The Real Property Development Bill is part of a package of five reforms by KPKT scheduled by 2026. Its sister initiatives include:
- The electronic Sales & Purchase Agreement (eSPA)
- Housing Integrated Management System (HIMS)
- Transformation and Empowering Data Usage in Housing (TEDUH)
- Audits of Housing Development Accounts
Minister Nga said implementing the eSPA could improve process efficiency, reduce cost and generate up to RM8 billion in government revenue by integrating e-signing with e-stamp duties.
Implications for the Property Sector
For developers, homebuyers and investors in Malaysia, the new Bill signals key shifts:
- Greater regulatory oversight — With wider coverage and stiffer penalties, developers will face higher compliance demands.
- Enhanced buyer protections — Homebuyers may benefit from stronger recourses in case of project delays, quality issues or financial mismanagement.
- Market transparency and resilience — By embedding audits and early-warning mechanisms, the Bill aims to reduce risk of abandoned or troubled development projects.
- Broader project types covered — Commercial and mixed-use developments will now fall under the same regulatory regime as residential projects, altering strategic planning for developers.
What to Watch Ahead
In the coming months, market participants should monitor:
- The drafting and consultation process for the Bill, stakeholder input may shape key changes.
- How the Bill interfaces with state-level regulation and planning laws, given Malaysia’s federal–state property framework.
- Implementation timeline, how the rollout of eSPA, HIMS and other reform pillars complements the Bill’s provisions.
- The response from developers, property platforms and homebuyers, particularly in terms of operational readiness and strategic adaptation.
