Moratorium on housing projects in KL would hurt the city's economy, says Zaliha

• Zaliha stressed that demand for homes in Kuala Lumpur remains strong, noting that unsold units in the city declined by 10.3% last year compared with 2023.

KUALA LUMPUR (Aug 26): A moratorium on new housing projects in Kuala Lumpur would have an economy-wide damage, said Minister in the Prime Minister's Department (Federal Territories) Datuk Seri Dr Zaliha Mustafa (pictured).

Such a move would dampen the capital city’s gross domestic product heavily dependent on the construction and property-related services sectors, and reduce development-related fees collected by Kuala Lumpur City Hall (DBKL), she warned.

“In addition, property prices and rental rates would rise, forcing residents—especially the B40 [Bottom 40% income group] and M40 groups—to relocate to the suburbs,” Zaliha told the Parliament on Monday.

She was responding to Young Syefura Othman (PH-Bentong), who had asked if the government plans to impose a moratorium on residential projects in Kuala Lumpur, citing an official report that the city will reach peak population in 2031—28 years earlier than the national projection.

Zaliha stressed that demand for homes in Kuala Lumpur remains strong, noting that unsold units in the city declined by 10.3% last year compared with 2023.

With the population projected to reach 2.35 million by 2040, the city will require about 783,000 new housing units, she said.

At least 40% of the homes must be affordable and inclusive, covering housing for senior citizens, persons with disabilities, youths and low-income groups under subsidised rental schemes, she noted.

Instead of a moratorium, Zaliha said DBKL is pursuing more targeted housing plans under the Kuala Lumpur Local Plan 2040, including zoning land use and setting development intensity in transit planning zones and transit influence zones.

The City Hall is also promoting transit-oriented development and curbing urban sprawl.

To enhance monitoring, DBKL is expanding the use of digital platforms and geospatial information systems to ensure housing supply is aligned with supporting infrastructure such as roads, public transport, healthcare facilities and schools, she added.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.