Senator calls for stronger price controls and targeted tax incentives to bridge the gap between soaring property costs and stagnant wages.
KUALA LUMPUR: A senator has urged the government to strengthen the national housing policy with more effective price controls and better-targeted tax incentives. Michael Mujah Lihan said this is crucial to address the severe imbalance between house prices and public income growth.
He stated that property prices in major cities have surged to severely unaffordable levels. Although construction costs and property values have risen, average wage growth has not kept pace.
“For young people and the M40 group, the challenge is not only the sale price,” he said during a debate on the King’s Royal Address in the Dewan Negara. He highlighted that high living costs, existing debt commitments and tightening bank lending criteria make loan approval a major hurdle.
The senator said many are trapped in a renter’s generation, where most income goes toward rent. He argued this paradigm requires a shift from all stakeholders, including developers and financial institutions.
“Developers should be more innovative in using technologies that reduce construction costs without compromising quality,” he added. He also said financial institutions need to explore more flexible financing schemes, such as broader rental-to-own programs.
