Malaysia among most stable economies in Asia amid global uncertainty — Nga

PETALING JAYA (May 12): Despite a challenging global environment, Malaysia stands on comparatively firm footing. International institutions such as JPMorgan have recognised Malaysia as among the most resilient economies in Asia amid ongoing geopolitical uncertainties, said Housing and Local Government (KPKT) Minister Nga Kor Ming. 

Speaking at the preview of the Asean Real Estate Conference (Arec) and the 25th International Architecture, Interior Design & Building Exhibition (Archidex) 2026, Nga, however, cautioned against complacency.

"Such challenges demand more than just national solutions. They require global solidarity. To navigate the complexities of the global uncertainties where supply chains are severely disrupted, we must look beyond our national borders and embrace a global perspective," he said at the event today held at the Malaysia International Trade and Exhibition Centre (Mitec), Kuala Lumpur.

Malaysia's property and construction sectors face moderate to significant headwinds from the ongoing Middle East conflict, but the government is rolling out targeted measures to cushion the impact, Nga said.

He cited a Real Estate and Housing Developers’ Association (Rehda) survey showing that around 30% of respondents expected a significant impact on the property and construction sectors if geopolitical tensions worsen, while approximately 43% anticipate a moderate impact. 

Key building materials including steel, cement and reinforcement bars are among the inputs most likely to see price volatility should the conflict persist.

"We are all acutely aware that the ongoing conflict in the Gulf has introduced a climate of global uncertainty, and the property industry is not immune to these headwinds," Nga said.

Government measures to contain costs

To address rising construction costs, KPKT is expanding the Rahmah Cement initiative — a collaboration with the Cement and Concrete Association of Malaysia — to cover all affordable housing projects priced below RM300,000 per unit, offering below-market cement prices to participating developers.

The government is also offering fast-track approvals as an incentive to developers committed to delivering affordable housing units, and is targeting savings of up to RM10 billion through rationalisation of operating expenditures under the Madani fiscal framework — to be redirected into critical sectors to help offset the rising cost of living. 

On affordable housing delivery, Nga said KPKT had exceeded its 12th Malaysia Plan (12MP) target, having approved the construction of 511,544 affordable housing units.

With Malaysia serving as president of the UN-Habitat Assembly, Nga positioned Arec and Archidex as a critical bridge for regional policymakers and industry leaders. 

"While Arec fosters the strategic dialogue necessary for better policy, Archidex ignites business innovation where industry leaders showcase their solutions, thereby shaping the future of the built environment. 

“This synergy perfectly aligns with our 4P Principle: People-Public-Private Partnerships," he said.

Arec and Archidex 2026, jointly organised by C.I.S. Network Sdn Bhd and Malaysian Institute of Architects (PAM), is scheduled from July 29 to Aug 1 at Mitec.

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