Kuala lumpur: Developers with projects that deliver strong social and environmental returns and align with regional priorities will receive stronger government backing.
According to BERNAMA News Agency, Deputy Economy Minister Datuk Mohd Shahar Abdullah announced this initiative, emphasizing faster approvals, infrastructure coordination, and improved access to financing facilities as part of the upcoming construction sector reforms.
The announcement was made during his keynote address at 'The 13th Malaysia Plan and State of the Economy - Impact on the Building and Property Industry as Growth Drivers', held at the Malaysia Building and Property Summit 2026. Mohd Shahar highlighted that a construction reform study will be conducted under the 13th Malaysia Plan (13MP) to bolster the nation's construction industry. This study aims to restructure the sector by establishing a comprehensive regulatory and legal framework covering construction, asset management, infrastructure, and professional construction services.
He further elaborated on the 13MP, noting that the building and property industry must address the affordable housing mismatch, with 32,801 completed but unsold residential units valued at RM16.37 billion as of the first quarter of 2026. The housing reform, a priority in the 13MP, aims to tackle the cost of living and enhance the well-being of Malaysians by aligning construction with what most people can afford.
The government's focus also includes catalytic development and regional rebalancing projects such as the Johor-Singapore Special Economic Zone, East Coast Rail Link, Pan Borneo Highway, and Mass Rapid Transit 3 (MRT3) in the Klang Valley. Mohd Shahar stated that under the new measurement framework, projects will be evaluated based on economic contribution, spatial integration, social impact, environmental footprint, and governance.
Moreover, the government is committed to advancing the adoption of Building Information Modelling (BIM) to reduce design conflicts and achieve efficient, high-quality national construction projects. The initiative will be supported by a conducive working environment, facilities, and training by July 2026.
Public-private partnerships (PPP) will also be strengthened in areas such as affordable housing delivery, urban regeneration, transit-oriented development, and brownfield redevelopment. Mohd Shahar emphasized the necessity of PPPs, noting that private capital and execution must play a larger role as federal fiscal space tightens.
Lastly, Mohd Shahar proposed collaboration with the Master Builders Association Malaysia and contractors to invest in upskilling Malaysian construction professionals, focusing on technical and vocational education, Construction Industry Development Board's upskilling, and Industrialised Building System-related training.