Government Firm in Strengthening Support, Reforms, and Collaboration in Housing Agenda

22 August 2025

KOTA KINABALU : The State Government has reiterated its commitment to strengthening support, implementing reforms, and expanding collaboration with all stakeholders in the property industry to ensure that every citizen in the state has access to safe, comfortable, and dignified housing.

Deputy Chief Minister II and Minister of Local Government and Housing, Datuk Seri Dr Joachim Gunsalam, said the Government recognises the current challenges affecting the property sector, particularly the rising costs of building materials, declining purchasing power, an oversupply of high-end properties, and difficulties in securing financing for first-time homebuyers.

“These factors have led to a slower uptake of housing units, especially in urban areas. Many among the B40 and M40 groups are still struggling to turn their dream of owning a home into reality,” he said.

Dr Joachim explained that the State Government, through the Ministry of Local Government and Housing (KKTP), has outlined both short- and long-term strategies to address these challenges.

One of the key initiatives is the continuation of the People’s Residency Programme (PRR) via public-private partnerships to deliver quality, affordable housing complete with community facilities, green spaces, and modern infrastructure.

“For example, a unit worth RM300,000 could be offered to eligible households at just RM60,000. Such a model will bring the dream of homeownership much closer to reality,” he said when officiating the SHAREDA PropEX 2025 themed ‘My Perfect Home’ at the Sabah International Convention Centre (SICC) today. His speech was delivered by the Ministry’s Permanent Secretary, Datuk Dr Jamili Nais.

Dr Joachim also highlighted that the Government is working closely with financial institutions to explore innovative financing schemes such as rent-to-own models, tiered mortgage packages, and housing credit guarantees, particularly for first-time buyers.

He further emphasised the role of the Sabah-MM2H (S-MM2H) programme as a catalyst for the property market, especially in absorbing the surplus of high-rise residential units priced at RM600,000 and above.

“This move not only stimulates the property market but also strengthens the tourism sector and related economic activities,” he added.

He said the Government’s long-term strategy focuses on the B40 and M40 segments, prioritising urban renewal, transit-oriented dense development, and offering incentives to developers to increase the supply of affordable housing units.

“The aim is not merely to build houses, but to build homes, build hope, and create a better future for the people of Sabah,” he stressed.

In this regard, he called on developers and stakeholders to be bold, adaptive, and inclusive in their development approaches.

“The road to ‘My Perfect Home’ must be built on the foundation of collaboration, innovation, and compassion. Sabah’s housing development agenda must be people-centric, going beyond profits alone,” he said.

At the same time, Dr Joachim expressed his appreciation to SHAREDA (Sabah Housing and Real Estate Developers Association) for organising the 47th edition of PropEX, describing it as a crucial platform for strengthening cooperation, innovation, and growth in the state’s property sector.

“SHAREDA’s commitment to excellence and dedication to the people of Sabah is truly appreciated. May PropEX 2025 pave the way for a more inclusive, resilient, and dynamic property landscape,” he said.