KUALA LUMPUR: Putrajaya is looking at introducing an "Option to Purchase" (OTP) clause to prevent the occurrence of sick and abandoned housing projects, says Nga Kor Ming.
The Housing and Local Government Minister said the clause is being studied under the proposed Real Property Development Bill, which aims to modernise the industry's legislative framework.
He explained that the OTP clause would provide both buyers and developers the flexibility to withdraw before executing a Sales and Purchase Agreement (SPA).
"This move lowers unnecessary financial and legal commitments at an early stage, while allowing developers to assess a project’s feasibility by understanding the realistic, on-the-ground buyer demand.
"Consequently, it helps avoid scenarios where developers face financial bottlenecks if sales are not optimistic halfway through construction," he said in his speech at the 2026 StarProperty Awards Thursday (May 7).
Nga noted that by doing so, the government can proactively prevent sick, delayed, or abandoned projects, as well as unsold units due to a lack of buyers.
He added that the ministry has a clear goal of achieving zero sick projects by 2030.
Since December 2022, the special task force on Sick and Abandoned Housing Projects has successfully revived over 1,500 projects with a gross development value (GDV) of over RM140bil, restoring the hopes of more than 176,000 homebuyers.
To further protect buyers, Nga said the government is accelerating the digitalisation of its regulatory processes to implement mandatory, real-time audits of Housing Developer Accounts.
Meanwhile, to combat rising construction costs spurred by the ongoing geopolitical crisis in the Gulf, Nga announced the upcoming rollout of a "Rahmah Cement" initiative.
Partnering with the Cement and Concrete Association of Malaysia, the initiative will be targeted at all affordable housing projects priced below RM300,000 per unit, with further details to be announced soon.
Despite global headwinds, Nga highlighted that Malaysia's property market achieved a historic milestone last year, with transactions exceeding RM240bil — the highest level in a decade.
"This reflects strong market confidence, amid political stability and favourable market conditions," he said.
On the broader economy, Nga said the Madani government is strategically leveraging Malaysia’s position as a net energy exporter to build a robust fiscal buffer against global uncertainties.
He said the government aims to unlock up to RM10bil in savings by rationalising operating expenditures, which will be redirected into critical sectors and used to maintain targeted subsidies.
Commending Malaysia's economic resilience, Nga also called on the public to safeguard the nation's political stability.
"We must now continue to safeguard the political stability we have worked so hard to rebuild, and firmly reject divisive and extreme rhetoric.
"Only then can Malaysia continue to inspire confidence among international investors and stand tall as a nation defined by the beauty and unity of its multicultural diversity," he added
As of Dec 31 last year, a total of 1,399 private housing projects, comprising 167,423 units with a gross development value (GDV) of RM133.78bil, have been successfully revived since the establishment of the Task Force for Sick and Abandoned Private Housing Projects (TFST) in 2023.
