Malaysia is taking decisive steps to modernize its property laws, with new legislation in the works to protect buyers of commercial real estate and improve building management standards. Housing and Local Government Minister Nga Kor Ming announced plans for the Real Property Development Act (RPDA), which would extend legal safeguards currently limited to residential projects under the 1966 Housing Development Act. The move comes as mixed-use developments like retail spaces and flexible offices surge in popularity, leaving buyers vulnerable when projects stall or fail.
The proposed RPDA follows months of consultations with industry experts and advocacy groups, aiming to close critical gaps in consumer protection. Unlike residential properties, commercial developments currently offer no legal recourse for purchasers if projects are abandoned. Nga revealed that a government taskforce has already revived over 1,000 stalled housing projects worth RM100.1 billion, benefiting more than 124,000 buyers. The new law would introduce an Option to Purchase (OTP) clause, allowing buyers to back out if construction progress falls short of expectations.
Parallel reforms include a Building Managers Act to tackle widespread complaints about poorly maintained strata properties. With only 594 licensed management firms overseeing millions of units nationwide, Nga acknowledged severe undercapacity in the sector. Many buildings suffer from declining values due to mismanagement, affecting both owners and tenants. The minister emphasized that these measures—alongside a forthcoming Urban Renewal Act—aim to revitalize aging infrastructure and align Malaysia with developed-nation standards.
Nga confirmed the RPDA will be presented to Parliament in 2025, marking a significant shift toward stricter industry accountability. By expanding regulatory oversight and introducing buyer-friendly mechanisms, the reforms seek to balance developer flexibility with stronger consumer rights. The initiatives reflect a broader push to address systemic issues in Malaysia’s real estate sector, ensuring sustainable growth amid rapid urbanization.