By Jacqueline Chang Siak Gek
To achieve sustainable housing, Malaysia can transform its housing challenges – rising costs, limited sustainability, and policy gaps – into opportunities through innovation, community-focused planning, and green development practices.
Housing in Malaysia is more than just a basic human need; it serves as an economic driver, a tool for social stability, and increasingly, a platform for pursuing sustainability goals. As the nation deals with rising property prices, limited affordable housing, and environmental concerns, the concept of sustainable housing has emerges as a vital policy priority.
Sustainable housing integrates environmental responsibility, economic viability, and social inclusivity. However, in Malaysia, implementing this concept faces a host of challenges that, if approached strategically, can also create new opportunities for developers, investors, and policymakers.
Understanding Malaysia’s Housing Challenges
Malaysia’s housing sector, particularly in urban areas, is facing multiple systemic pressures. A key issue is housing affordability. Despite various schemes and incentives, many Malaysians, especially those in the B40 and M40 income groups, struggle to own a home. The House Price-to-Income (HPI) ratio in urban centres like Kuala Lumpur far exceeds the affordable threshold, with properties often priced beyond the reach of ordinary wage earners.
In addition to affordability, the sector is plagued by inefficient land use, delayed project delivery, and a limited focus on sustainability features. Many housing developments are constructed with short-term profits in mind, sidelining long-term considerations such as environmental resilience, community well-being, and life-cycle cost efficiency. Environmental sustainability is often treated as a luxury or an afterthought rather than an essential design requirement.
Furthermore, there is a low level of awareness and demand among homebuyers for green homes. Without a strong consumer push, developers are less incentivised to adopt eco-friendly designs or invest in renewable energy integration, water conservation technologies, or modular building techniques.
Selected International Approaches to Sustainable Housing
Malaysia is not alone in facing these challenges. However, lessons can be drawn from countries like Singapore, where public housing is planned with sustainability, inclusivity, and long-term affordability in mind. Through centralised urban planning, integrated transportation systems, and green building incentives, Singapore has managed to create resilient and desirable housing without compromising on cost or quality.
Similarly, countries like Sweden and Japan have successfully implemented energy-efficient designs and smart technologies in both public and private housing developments, highlighting that sustainability and affordability can coexist when supported by robust policy frameworks and innovative construction practices.
Turning Challenges into Opportunities
Despite the limitations, Malaysia stands at a crossroads where housing challenges can be transformed into innovation-driven opportunities. The push for sustainable housing can catalyze growth into several sectors, including construction technology, renewable energy, and green financing.
- green housing as a market differentiator: despite the limitations, Malaysia stands at a crossroads where housing challenges can be transformed into innovation-driven opportunities. The push for sustainable housing can catalyze growth into several sectors, including construction technology, renewable energy, and green financing.
- innovative construction techniques: embracing modular and prefabricated building systems can significantly reduce construction waste, accelerate project delivery, and lower overall costs. These technologies have already gained traction in other parts of Asia and could help address some of the issues in Malaysia related to delayed projects and inconsistent quality.
- community-centric planning: Beyond physical buildings, sustainable housing should foster social cohesion. Integrating community amenities such as parks, childcare centres, public transport access, and pedestrian-friendly designs can enhance living quality and increase the value of housing developments. These features also appeal to the growing segment of buyers who prioritize lifestyle and community over sheer size or location.
- aligning finance with affordability and sustainability: financial institutions can play a more proactive role by developing green mortgage products, rent-to-own schemes, and shared equity models that reduce the burden on first-time buyers. This financial innovation could also open new market segments for both banks and developers.
Why Public Perception Matters
While policy and market shifts are critical, a bottom-up understanding of public perception in regions like Sarawak is equally essential. What features do local people value in a home? What barriers do they face in accessing quality, affordable housing? How do they perceive green or sustainable housing? Currently, there is limited data on the perceptions of Sarawak residents regarding housing quality, affordability, and sustainability. Exploring these perceptions through a systematic study can guide local government and developers in designing policies and projects that are truly responsive to community needs.
Thus, developers may consider green housing as a market differentiator, use innovative construction techniques, focus on community-centric planning, and align finance with affordability and sustainability. Meanwhile, the government of Sarawak may explore public perception regarding housing, with an emphasis on affordability, sustainability, and quality of life. This baseline study can be instrumental in shaping future housing strategies, ensuring that planned developments align with the actual needs and preferences of Sarawakians.