This article first appeared in City & Country, The Edge Malaysia Weekly on August 17, 2026 - August 23, 2026

Industry observers welcome the broader direction of the National Housing Policy (DRN) 2026-2035, particularly its focus on data, affordability and liveability, but say its success will ultimately depend on implementation, coordination and adaptability to changing market conditions.

The latest policy comes at a time when the conversation on housing is increasingly focused on how many homes the country will need in the next decade. But the more complicated topics are where those homes should be built, who will be able to afford them, whether they are connected to amenities and workplaces, whether households should necessarily own rather than rent, and whether the housing ecosystem can respond quickly enough when market conditions change.

That is why industry observers generally see the policy, launched by Minister of Housing and Local Government Nga Kor Ming on Aug 10, as a positive step. Anchored by the theme “Humanising Housing”, DRN 2026-2035 covers six core areas, 17 strategies and 59 action plans, including liveable neighbourhoods, demand-based housing provision, housing quality, secure tenancy, affordability and institutional capacity.

For Henry Butcher Real Estate Sdn Bhd chief operating officer Tang Chee Meng, the document is comprehensive, well researched and well thought out. But he is also quick to point out that having 

a comprehensive policy is only the starting point. “As in any policy, the devil is in the details, as well as the implementation by the designated agencies,” he says.

Tang believes there needs to be seriousness in implementing all the action areas identified in the policy framework, together with a central coordination and monitoring agency to track progress and the success of the various measures. More importantly, such an agency should be able to recommend changes promptly when shortcomings or obstacles are identified.

That point could prove particularly important as the DRN is a 10-year policy. The housing market in 2035 is unlikely to look like the one Malaysia has today.

“Different administrations have different views and priorities in handling housing issues,” says Tang, adding that there needs to be continuity in implementation and a consistent degree of importance placed on the policy even if there is a change in government.

He stresses that the DRN needs to remain dynamic. A change in economic conditions could affect demand for housing, while a sharp rise in construction costs could affect property developers’ ability to cross-subsidise and finance affordable homes.

That makes implementation less about following the document to the letter and more about ensuring the policy remains relevant as the market evolves.

The DRN itself provides for a mid-term review as well as a comprehensive evaluation of its achievements and impacts. But for the industry, the question is whether that flexibility will be sufficiently embedded into the implementation.

Rahim & Co Chestertons senior director of research and consultancy Sulaiman Saheh sees value in the push towards more granular housing data and locality-based planning under the DRN. The policy calls for housing ownership and rental affordability reports by locality, while seeking to strengthen the housing approval process by taking into account existing stock and completed unsold units in specific areas.

For Sulaiman, this is a more meaningful approach than simply applying a national definition of affordability across very different housing markets. The implication is that the affordable housing provision should be guided by actual demand rather than by blanket requirements that may result in the wrong types or quantity of homes being delivered in a particular location.

This is also where Real Estate and Housing Developers’ Association (Rehda) Malaysia president Datuk Zaini Yusoff sees considerable potential in the policy. Rehda has long advocated for a comprehensive and centralised housing data system capable of providing an accurate and timely picture of demand in specific locations, he says in an Aug 11 press statement.

“Better data will enable both the public and private sectors to make more informed decisions, particularly in ensuring that affordable housing is provided in the right location, at the right price and according to actual demand, while reducing supply-demand mismatches and unsold units,” he adds.

Meanwhile, Sulaiman notes that this is important because the housing problem cannot be solved simply by producing more units. “We should not only look at ownership,” he says, pointing to the need to consider rental as part of the housing equation, as not everyone can afford to make a purchase.

The DRN mentions the target gazettement of the Residential Tenancy Act in 2027 to strengthen residential tenancy protection, while providing for a residential tenancy registration system and e-tenancy agreements.

Sulaiman, however, says the balance needs to be carefully managed. “If we make it too skewed towards tenants, for instance, it will create issues. The needs and interests of both tenants and landlords must be balanced.”

The policy also proposes transitioning towards build-then-sell (BTS) between 2027 and 2035, with BTS becoming the main housing delivery system by 2035.

Rehda supports the intention to strengthen homebuyer protection, but Zaini stresses that the transition needs to be studied carefully. “Any fundamental change to the housing delivery system must take into account its implications on the overall housing delivery, which includes holding costs, financing, cash flow, housing prices and supply, among others,” he says.

This is particularly relevant to small and mid-sized developers, which may not have sufficient financial capacity to fund an entire development until completion.

Rehda believes the sell-then-build concept should continue to coexist with BTS should the latter be introduced, with any transition being progressive and supported by appropriate financing and regulatory mechanisms.

For Sulaiman, the wider issue comes down to recognising that there is no single solution that can work equally well for every part of the market. He also cautions against responding to housing challenges by adding new layers of regulation.

The DRN proposes greater professionalism in building and property management, including increasing the number of professional building and property managers and studying the need for a professional or regulatory board under an existing body.

Sulaiman’s view is that Malaysia already has an ecosystem that can be strengthened. “If you’re creating something new, you’re making the existing ecosystem go to waste,” he says.

Instead, he believes existing institutions and professional structures such as the Board of Valuers, Appraisers, Estate Agents and Property Managers should be given the resources and capacity to perform their roles more effectively.

For Zaini, the next step is for the government and industry to work together to translate the policy into practical outcomes. “Rehda views the DRN as a positive and comprehensive framework for strengthening Malaysia’s housing ecosystem and we remain committed to working closely with the government towards its effective implementation,” he says.

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