Malaysia

Ministry considers 'pay-as-you-use' model for affordable housing maintenance fees

Housing ministry explores usage-based fee system and modular construction to boost affordability

Updated 1 year ago · Published on 21 Jul 2025 5:28PM

Ministry considers 'pay-as-you-use' model for affordable housing maintenance fees
Nga says the model is designed to create a fairer system where residents only pay for facilities they actually use, which could help alleviate financial strain - July 21, 2025

THE Housing and Local Government Ministry is considering a usage-based “pay-as-you-use” model for maintenance fees in future affordable housing developments, in a move aimed at improving accessibility, equity, and sustainability in Malaysia’s public housing sector.

Housing and Local Government Minister Nga Kor Ming announced the proposal during the opening of Kuala Lumpur Architecture Week (KLAW) 2025 today, stating that the initiative forms part of broader reforms to modernise and uplift the real estate industry.

“Under this proposed model, residents will receive access cards that track their monthly usage of shared facilities,” he said. “We are starting with the Rumah Bakat Madani initiative led by Skyworld Pearlmont in Penang, which features a pay-per-use clubhouse with an infinity pool, pickleball and badminton courts, a children’s playground, and gyms.”

Nga said the model is designed to create a fairer system where residents only pay for facilities they actually use, which could help alleviate financial strain, particularly in lower-income communities.

“This will serve as a reference model for future public housing projects, which may also include vertical schools to provide better access to education for vulnerable communities,” he added.

In tandem with the maintenance fee reforms, the ministry also plans to engage private developers to build Industrialised Building System (IBS) facilities, promoting the use of modular construction techniques such as Prefabricated Prefinished Volumetric Construction (PPVC). These methods are intended to improve construction efficiency, reduce waste, and minimise pollution.

Nga noted that the initiative is in line with the Malaysia MADANI vision and Malaysia’s role as President of the United Nations Human Settlements Programme (UN-Habitat) General Assembly.

Commenting on KLAW 2025, Nga underscored the role of architecture in revitalising heritage assets. “Architectural elements play a vital role in breathing new life into heritage buildings, preserving their cultural significance while integrating modern design,” he said.

KLAW 2025 serves as a lead-up to the ASEAN Real Estate Conference (AREC) and ARCHIDEX. These major events, hosted across the Malaysia International Trade and Exhibition Centre (MITEC) and the Kuala Lumpur Convention Centre (KLCC), are expected to attract over 50,000 international visitors and generate approximately RM2 billion in transactions. - July 21, 2025

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