A Safer Model for Homebuyers

Under the 10:90 BTS scheme, homebuyers only pay 10% upfront when signing the sale and purchase agreement. The remaining 90% is paid only upon completion, once the property has received the Certificate of Completion and Compliance (CCC) and Vacant Possession (VP).

This ensures that buyers pay only for completed homes — minimizing exposure to financial risk and eliminating uncertainties often associated with projects under the sell-then-build (STB) approach.

“The government has a gradual plan to transition from the STB concept to the BTS model,” Nga said, adding that the approach remains voluntary for now and is open to developers with sufficient financial strength.

Since BTS requires high capital investment during the early stages of construction, the government recognizes that smaller developers may face challenges adopting it immediately.

Industry Readiness Still Developing

Nga explained that the National Housing Department’s assessment shows the industry ecosystem — including financing, supply chains, and developer readiness — is not yet fully equipped to handle mandatory implementation.

“If we make BTS compulsory now, it could give an unfair advantage to large corporations and create pressure on small and medium developers, particularly those active in small towns and rural areas,” he noted.

Indeed, SMEs continue to play a vital role in expanding Malaysia’s housing supply beyond urban centers, especially in emerging markets within Selangor and Kuala Lumpur. Smaller players often handle projects like affordable housing, industrial land in Selangor, and commercial properties in KL, which require a balance between financial sustainability and delivery assurance.

Upcoming Reforms to Strengthen the Housing Sector

Nga also revealed that major housing reforms will be announced on November 20, expected to address both the regulatory framework and financial ecosystem for housing development.

The ministry’s goal remains clear — ensuring that every Malaysian has access to safe, comfortable, and affordable housing, whether through ownership or rental.

Currently, homeownership in Malaysia stands at 76.5%, and the Ministry of Housing and Local Government (KPKT) continues to focus on improving efficiency, accountability, and transparency in project delivery.

“We want to ensure homes are built responsibly, delivered on time, and developed with integrity,” Nga emphasized.

What the BTS Model Means for the Property Industry

The adoption of BTS could reshape Malaysia’s property landscape, influencing not only residential developments but also commercial and industrial property segments.

Developers working on projects such as office space in Bukit Jalil, factories in Puchong, and industrial property in Shah Alam are likely to benefit from stronger buyer trust if similar build-completion standards are introduced.

For investors and developers managing industrial land in Selangor or commercial projects in KL, the BTS framework aligns well with current global trends — where transparency, sustainability, and customer confidence define long-term market strength.

While full-scale implementation will take time, the incentives introduced by the government represent a significant step toward creating a more stable and buyer-secure housing environment.

The Road Ahead

As Malaysia prepares for upcoming housing reforms, the shift toward a build-then-sell approach could mark the beginning of a new era for the nation’s property market — one that promotes trust, accountability, and balanced growth across residential, industrial, and commercial sectors.

For developers, adopting the BTS model could become more than a compliance decision — it could be a strategic move that defines market reputation and long-term success.