Rehda Malaysia Calls for Automatic Release Mechanism for Bumiputera Quota Units in Housing

The Real Estate and Housing Developers’ Association (Rehda) Malaysia has urged the federal government to implement an automatic release mechanism for Bumiputera quota units to address various challenges in the housing industry.

According to Rehda Malaysia President NK Tong, many developers have already fulfilled the necessary requirements for advertising Bumiputera units for sale for the required duration, yet Bumiputera sales are still not materializing. In such cases, Tong believes that developers should not face additional requirements and that there should be an automatic release mechanism allowing these units to be sold to the general public.

Tong’s statement comes in response to a recent report indicating that the Selangor State Government plans to blacklist developers who fail to comply with Bumiputera quota requirements. Since land matters are regulated at the state level, there is no nationwide mechanism to standardize Bumiputera quotas and automatic release procedures. This has led to unintended consequences, including an increase in completed but unsold units, often labeled as “overhang.”

Additionally, it has indirectly contributed to rising housing prices for all Malaysians, as holding costs for unsold units are passed on to consumers. There is also a concern that these unsold units could lead to cash flow problems and project delays or abandonment.

Rehda Malaysia acknowledges that authorities should take action against developers who sell Bumiputera quota units to non-Bumiputeras without obtaining the required state consent. However, they also appeal to state governments not to penalize innocent homebuyers who unknowingly purchase such units from errant developers.

The issue of Bumiputera quotas and the release mechanism for housing units is a complex and sensitive matter in Malaysia, with considerations related to land ownership and ethnic preferences playing a significant role in housing policies.

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