Housing and Local Government Minister Nga Kor Ming.
PETALING JAYA: If Putrajaya placed limits on homes bought for investments, the real estate sector in Malaysia could potentially collapse, affecting over 200-related industries, says the Housing and Local Government Minister Nga Kor Ming.
Nga said that Malaysia is a democratic country and it is important to ensure there is enough supply for housing in the market.
“We are not a communist or dictatorship country that forbids people from buying additional houses,” said Nga during a press conference after his ministry’s Budget 2025 media engagement session yesterday.
Nga also said property investment is one of the most effective tools to combat inflation and it has been proven all around the world.
“It is not the government’s job to stop people from investing in the real estate sector. If we had taken up such proposals, I’m confident that the property market would collapse and who would be responsible for that?” questioned Nga.
“Never forget, the real estate sector is linked with 200 related industries that consists of contractors, plumbers, furniture and electrical appliances, as well as lawyers and bankers.
“If the real estate market collapses, imagine the catastrophe that could affect the country,” said Nga.
Nga was responding to former Umno leaders Khairy Jamaluddin and Shahril Hamdan, who remarked in their Keluar Sekejap podcast earlier this month that the government should limit houses bought for investments to address shortage of affordable housing.
Khairy and Shahril had said 60% of unsold homes are high-end properties that are too expensive for most people.
Meanwhile, Nga said Malaysia is on the right track of house ownership, as 76.9% Malaysians had owned their first houses.
“My dream is 100%, so that everyone owns a home.
“Owning a home gives a sense of security and it is a reflection of quality living, especially for those who are learned in real estate investments.
“Many created wealth through property investment,” said Nga.
Nga also said there are enough mechanisms presently to address people from speculating on house prices.
“We have the real property gains tax to stop people from speculating,” added Nga.
In the earlier engagement session, Nga said Budget 2025 had also included an allocation of RM54.4mil in 22 projects to upgrade or construct markets across all localities in the country.
Nga said the government and the Malaysia Institute of Architects will hold a competition for market designs soon.
