PETALING JAYA (Dec 3): Industry participants at a Real Estate and Housing Developers’ Association (Rehda) Institute workshop have suggested that other Malaysian states should replicate Sabah’s reformed Bumiputera quota model, which maintains a 30% allocation but offers buyers far greater flexibility in unit selection and resale.
A representative from Sabah explained that the model — implemented in November last year — has significantly reduced unsold Bumiputera units by removing the five-year holding period.
“Buyers can select any unit, still enjoy the 30% quota and the 5% discount, and they’re no longer restricted to specific blocks or designated zones. If someone buys a Bumi unit today, they can sell it tomorrow to a non-Bumi,” he said.
This streamlined approach, he added, was designed to address the backlog of Bumiputera-designated homes, a challenge seen across several states, including areas experiencing rapid growth and rising demand for property — from residential hubs in the Klang Valley to commercial property in KL, new factory spaces in Puchong, and expanding corridors of industrial land in Selangor and industrial property in the Subang area.
Potential Expansion to Other States, But Challenges Remain
The Sabah representative also noted that federal leaders are monitoring the model’s success.
“When we presented the idea to Housing and Local Government Minister Nga Kor Ming, he said that if Sabah can do it, he would study the feasibility of rolling it out in other states.”
However, participants from Peninsular Malaysia cautioned that bureaucratic hurdles may slow adoption elsewhere.
A Kuantan-based participant pointed out that despite federal directives for faster approvals via “express lanes”, implementation remains inconsistent at state level.
“If we can streamline bureaucracy and standardise processes, then real change becomes achievable,” he said.
Is the Current Quota Still Relevant?
A Rehda Institute representative remarked that the Bumiputera quota policy, introduced in 1971, may require recalibration to reflect current demographics and market realities.
“Bumiputera homeownership now exceeds 70%. So are we unintentionally pushing the remaining 15% to 20% to buy homes they may not necessarily want? And with Bumiputera making up the majority population, the concept of ethnic integration needs to be re-examined,” she said.
Quota requirements also vary widely by state — from 20% to 100% — creating inconsistencies for developers and buyers.
Matching Supply to Real Demand
Participants agreed that unsold affordable homes remain a major concern. Better data sharing, demographic analysis and location-based planning were highlighted as critical tools to avoid supply-demand mismatch. Many emphasised that affordable housing allocations should be tailored to the community profile of each area.
Insights to Feed Into Upcoming Rehda Report
The workshop was held in support of Rehda Institute’s forthcoming report, “Housing For All: Co-Creating A Needs Driven Framework,” scheduled for release next year.
Representatives from the Housing and Local Government Ministry, the Ministry of Economy, Napic, DOSM, PLANMalaysia, local councils, developers, universities and various government agencies took part in the discussion.
