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SHAH ALAM – The government should consider placing low-cost housing under a federal management body to address persistent maintenance and collection problems affecting some of the country’s most vulnerable homeowners, says a property industry leader.
Malaysian Institute of Property and Facility Managers president Ishak Ismail said the proposal should be considered as part of the government's priorities for Budget 2027, alongside stronger property laws and enforcement powers.
Ishak, who is also Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) Property Managers Committee chairman said poor management of low-cost and low-to medium-cost housing could eventually undermine the value of properties owned by B40 households.
He said one option was to establish a federal body to oversee the management of low-cost housing, although the government could potentially use existing agencies rather than create an entirely new structure.
"Perhaps the government should consider having a federal body to manage all low-cost housing," he said.
Ishak said the Valuation and Property Services Department already had expertise in property management and could potentially be used to minimise the cost of establishing a new body.
He said better management of low-cost housing could also reduce the need for repeated discussions on urban redevelopment because buildings would be properly maintained from the outset.
"This is also important because many residents in low-cost housing are from the B40 group and these properties are an asset that they can use to support themselves after retirement or in their later years," he said.
Stronger laws for landlords, strata management
Ishak said the government should also prioritise improvements to the legal framework governing the property sector in Budget 2027.
He welcomed the Housing and Local Government Ministry's proposal to introduce a Tenancy and Residency Act, saying clearer rules governing the relationship between landlords and tenants could strengthen confidence in the rental market.
"When people have more confidence, demand will increase and property values can also go up," he said.
He also called for amendments to the Strata Management Act to address low collection rates from owners who fail to contribute towards maintenance costs.
Ishak said Joint Management Bodies and Management Corporations faced difficulties taking action against such "free riders", with existing measures limiting how unpaid charges could be recovered.
He said stronger provisions were needed to ensure owners contributed towards maintaining shared properties.
More property managers needed as strata living grows
Ishak also said Act 242 needed to continue supporting efforts to increase the number of registered property managers in Malaysia.
He said pathways such as direct examinations with BOVAEP and the Certified Property Management Programme under the National Institute of Valuation could help expand the pool of registered professionals.
The need was becoming more urgent as the number of strata parcels was expected to rise significantly, he said.
"About 30 per cent of the population lives in strata properties and in the future, that could increase to 50 or even 60 per cent," he said.
Ishak said the Housing Developers Act should also be reviewed, noting that the ministry was looking at expanding its scope to cover commercial developments and potentially creating a broader Property Development Act.
He said the move would be welcomed by the property industry.
Laws need enforcement powers
Beyond legislation, Ishak said the government also needed to focus on empowering enforcement agencies.
He said agencies such as the Commissioner of Buildings were prepared to carry out their responsibilities but did not always have sufficient powers to address issues effectively.
"Even if we have good laws, they will not solve the problem if the relevant agencies are not properly empowered to enforce them," he said.
He cited difficulties in ensuring developers placed sufficient deposits to cover defects involving common property as one example of an issue that remained unresolved.
Ishak said giving relevant enforcement units greater powers would allow them to carry out their responsibilities more effectively.
Review stamp duty for foreign buyers, subsale market
Meanwhile, Malaysian Institute of Estate Agents vice-president and BOVAEP Estate Agency Practice Committee member Ethan Leong Yung Sen said the government should consider reviewing the higher stamp duty imposed on foreign property buyers.
He said the eight per cent rate could potentially affect foreign interest in Malaysia's property market by discouraging some potential buyers.
Ethan also called for a review of stamp duty on the Memorandum of Transfer (MOT), particularly for purchasers in the subsale and secondary property markets.
He said the upfront cost could be a significant burden for buyers and suggested reducing the MOT stamp duty rate to make secondary-market purchases more affordable.
The calls come as the government prepares Budget 2027, with the property sector expected to remain closely linked to broader efforts to improve housing affordability, strengthen the rental market and support home ownership.
For the property industry, the proposals point beyond short-term incentives, with calls for the government to strengthen the legal and enforcement framework while ensuring housing assets, particularly low-cost homes are properly managed over the long term.
