The six focus areas are supported by 17 strategic directions and 59 action plans. Details of these directions and plans can be found in the DRN 2026-2035.
Among the key regulatory instruments that are proposed to be introduced or amended to help achieve the goals of the DRN 2026-2035 and the estimated timeframes for their respective implementation are as follows:
The points of interest on some of the regulatory instruments referred to in the above Table are set out below.
Uniform Building By-Laws: The proposed amendments seek to ensure that building control regulations remain relevant and responsive to advancements in construction technology, safety standards and contemporary housing needs. The amendments will also support the delivery of housing that is safer, higher in quality, more sustainable and more affordable.
Guidelines for Maintenance and Management of Housing Facilities: The guidelines seek to ensure that housing maintenance works are carried out systematically, in a quality manner and in line with asset management standards.
Residential Tenancy Act: The new Act will address regulatory gaps in the sector, provide stronger protection against discrimination, specify minimum standards for housing quality and habitability and regulate contractual disputes. A residential tenancy registration and e-tenancy agreement system is expected to be developed by 2028.
Rent-to-Own Guidelines: These guidelines will facilitate the implementation of a rent-to-own scheme to assist tenants to gradually transition towards homeownership through a more flexible and revolving rental mechanism.
Real Property Development (Control and Licensing) Act: The new Act will strengthen the legal framework of the housing sector, enhance protection for homebuyers and ensure that housing development governance is more transparent.
Enhancements to Urban Renewal Guidelines: The proposals being considered in relation to the urban renewal include prioritising a rehabilitation-led approach over redevelopment, with emphasis on maintenance, repair and lifecycle management before demolition is to be considered, as well as the retention of the original residents of the redeveloped housing areas. Public-private partnership (PPP) models with equitable value distribution, including profit-sharing mechanisms, are also under consideration.
Housing Planning Guidelines: The enhancements being contemplated include incorporating compliance requirements aligned with the latest National Housing Standards on housing size and design, and promoting disaster-resilient, green, and energy-efficient housing. The enhancements seek to ensure that the guidelines remain relevant and continue to uphold high standards of quality, safety and liveability. It is also proposed that minimum green performance criteria covering energy efficiency, water conservation and indoor environmental quality be introduced.
Private Rent-to-Own Schemes: The introduction of a formalised structure for private rent-to-own schemes is viewed as one of the means of providing affordable housing. Incentives may be granted to encourage housing developers and homeowners to participate in rent-to-own schemes. It is contemplated that four pilot projects in major urban areas may be introduced from 2030 to 2035.
Housing Shared Ownership Schemes: The schemes would provide a more flexible and gradual alternative pathway to assist middle-income groups in owning a home. A study will be conducted on the policy framework and instruments for the Housing Shared Ownership Schemes.
Strata Management Act 2013: This Act is to be amended to strengthen the legal framework, governance and management of strata developments in line with current needs. The amendments aim to clarify the roles, responsibilities and accountability of stakeholders, enhance enforcement and dispute resolution mechanisms, and improve the efficiency of the management and maintenance of common property. This initiative will also safeguard the interests of parcel owners and residents, strengthen regulatory compliance and ensure that strata management is carried out in a more transparent, effective and sustainable manner.
Other noteworthy points
Other noteworthy points in the DRN 2026-2035 include the following:
Strengthen planning permission: Planning permission approvals will be strengthened to comply with local plans and take into account the findings of housing ownership and rental affordability report. The approval process should also consider key affordability indicators, including homeownership and rental affordability, housing prices, household income levels and the suitability of housing locations, to ensure that new housing developments are aligned with local needs and market conditions.
Introduction of big data analytics: To coordinate and integrate housing data from various agencies to enable more accurate market analysis and support data-driven housing planning and policies, the Ministry proposes to strengthen the National Housing Data Bank System (TEDUH) by introducing an integrated housing information repository in 2027.
Transitioning from Sell-then-Build to Build-then-Sell: To safeguard homebuyers and minimise the risk of abandoned housing projects and to promote a transparent, accountable and high-quality housing development system, it is proposed that the housing development sector transitions from a Sell-then-Build (STB) to Build-then-Sell (BTS) model. This will be introduced gradually between 2027 to 2035 with the percentage of housing projects using the Build-then-Sell system increasing from 30% in 2030 to 50% in 2035.
Increasing the number of professional building managers/ property managers: As Malaysia has nearly 3 million strata property units across more than 27,000 schemes, the Minister of Housing and Local Government acknowledged the need to enact bespoke legislation (described by certain media outlets as the Building Managers Act) to regulate professional building managers/ property managers.
2 Although the DRN 2026-2035 does not provide for the introduction of new legislation for this purpose, it nevertheless recognises the need to enhance institutional capacity and professionalism of the profession. To this end, the DRN 2026-2035 seeks to increase the number of professional building managers/ property managers and to improve technical competencies to ensure more efficient, integrated and effective implementation of strata/ building policies and management. It is also proposed that a study be conducted to determine whether there is a need to establish a professional or regulatory board under an existing body.
Senior citizens and persons with disabilities: The DRN 2026-2035 proposes several initiatives to cater for senior citizens and persons with disabilities. Housing financing schemes tailored for senior citizens will be introduced between 2030 to 2035, whilst grants for retrofitting of housing for senior citizens and persons with disabilities and incentives for providing housing and care facilities for senior citizens that meet liveability standards will be made available between 2028 to 2035.
Financing schemes: To improve access to housing, financial products with stepped up financing, government financial assistance programmes and long term fixed rate housing financing will be introduced between 2028 to 2035.
Comments
As illustrated in our summary, the DRN 2026-2035 will introduce a raft of changes to the housing development industry in the coming decade that will strengthen the industry, improve the quality of housing and its related amenities, and enhance the level of professionalism and transparency in the industry. As some of the proposed changes are dealt with in the DRN 2026-2035 in broad statements, further comments will only be possible after details of the proposals have been unveiled.
The proposal to introduce the Residential Tenancy Act, Private Rent-to-Own Schemes, Housing Shared Ownership Schemes are interesting concepts in Malaysia.
The most interesting legal initiative is the proposed introduction of a comprehensive Real Property Development (Control and Licensing) Act in 2027 to replace the Housing Development (Control and Licensing) Act 1966. The new Act will cover not only housing development but also the development of commercial real estate. According to the Minister, this new Act is already in the final stage of review.
3
As the DRN 2026-2035 provides a fair amount of details on enhancements to be made to the Urban Renewal Guidelines but does not mention any law to be introduced in relation to urban renewal, one wonders whether the Ministry has switched tack in its approach towards the subject by enhancing the mechanisms within the guidelines rather than to push through the Urban Renewal Bill 2025 which has been deferred since it was tabled for its First Reading in the Dewan Rakyat (
House of Representatives) on 21 August 2025.
Article by Lee Ai Hsian (Partner), Javene Fan (Senior Associate) and Chong Zhi Shin (Associate) of the Real Estate Practice of Skrine.