KUALA LUMPUR: Building owners and management bodies could enjoy lower tax rates under a proposal by the Housing and Local Government Ministry to encourage greater adoption of green building practices.
Its minister, Nga Kor Ming, said the proposal was submitted to the Finance Ministry on Thursday as part of efforts to make green certification more attractive and financially viable.
“Green practices should not be viewed simply as an additional cost. Buildings that consume less energy and water, manage resources more efficiently and provide healthier environments can reduce long-term operating and maintenance costs,” he said at the Malaysia Property Expo 2026 here on Friday.
Nga said the ministry was planning to establish a dedicated division to monitor and coordinate green building rating tools and encourage more building owners and management bodies to pursue green certification.
The ministry, Nga said, is leading by example, as its 38-storey headquarters recently became the first ministry building in the country to receive both the GreenRE Gold Rating and Gold Energy Certificate rating.
In line with the goal of building one million affordable housing units, he said the ministry would introduce a big data-driven approach to determine housing affordability from next year, replacing a one-size-fits-all approach with benchmarks that better reflect local incomes and purchasing power.
“The price of a house in Bukit Bintang, Kuala Lumpur, cannot be measured using the same affordability benchmark as one in Tanah Merah, Kelantan. Home affordability should be measured using a more scientific approach backed by facts, data and accurate figures.”
The data, he said, would also help the government determine where affordable homes should be built based on demand, employment opportunities, public transport and access to essential amenities.
“A house may be affordable on paper, but if a family has to spend hundreds of ringgit more every month travelling to work, then it is not truly affordable.”
Furthermore, Nga said that the government is widening access to home financing, particularly for entrepreneurs, freelancers, gig workers and the self-employed who may not have conventional payslips.
The government is targeting 100,000 beneficiaries by year-end and hopes to bring more banks into the scheme.
More than 97,000 first-time homebuyers had benefited from the Housing Credit Guarantee Scheme, which provides eligible buyers with financing of up to RM500,000.
Nga reiterated that the ministry was looking into a series of legal reforms to lower the risks of sick and abandoned private housing projects.
“Prevention is always better than cure.”
He said the ministry is pursuing several legal reforms, including the proposed Real Property Development Act, Building Managers Act and Rental Tenancy Act, as well as amendments to the Strata Management Act.
“A strong property sector should not only be measured by transaction values or prices. It must translate into better homes and a better quality of life.”
