Malaysia’s housing market faces a critical imbalance, with luxury properties dominating unsold inventory while affordable homes remain scarce. Former Umno figures Khairy Jamaluddin and Shahril Hamdan argue that extending mortgage periods to 40 years—a recent proposal by Deputy Prime Minister Ahmad Zahid Hamidi—would only worsen the nation’s housing crisis rather than solve it.
During their Keluar Sekejap podcast, the political analysts proposed an alternative solution: implementing purchase limits on investment properties. Their analysis reveals that 60% of unsold units are high-end developments priced beyond the reach of average Malaysians. “Artificially inflating loan tenures doesn’t address the root issue—it merely shifts the financial burden to future generations,” Shahril cautioned.
Khairy criticized developers for constructing properties without assessing market affordability, creating an oversupply of luxury homes. When these units fail to sell, industry players lobby for policies like extended loan terms that primarily serve their interests. “This isn’t about helping buyers—it’s about protecting developer profits,” he asserted, labeling prolonged mortgages as “debt until death” schemes.
The duo warned that populist financial policies could have severe long-term consequences. Easier credit access might temporarily boost sales but would ultimately saddle young Malaysians with unsustainable debt. “We’re trading short-term market stimulation for generational financial strain,” Shahril emphasized. Their critique highlights the need for systemic reforms prioritizing housing affordability over speculative investment.