KUALA LUMPUR: The Housing and Local Government Ministry (KPKT) and Khazanah Nasional Bhd will undertake the redevelopment of the Malaysia’s iconic heritage buildings with an allocated budget of RM600 million.
Housing and Local Government Minister Nga Kor Ming said the sovereign wealth fund will oversee the redevelopment of sites such as the Old Post Office, Carcosa Seri Negara, Sultan Abdul Samad Buildings, Dataran Merdeka and other historic landmarks, preserving the nation’s heritage while transforming them into modern attractions.
“The government has decided to restore these iconic buildings and national landmarks, with the initiative is supported by ThinkCity under the Kuala Lumpur Creative and Cultural District Programme.
“This redevelopment aims to breathe new life into these heritage buildings and make them more attractive to visitors once completed,” he told reporters at the Malaysia Annual Real Estate Convention 2025 (Marec 2025), at Berjaya Times Square Hotel today.
Nga said one of the key projects, Carcosa Seri Negara, is set to be completed within this year and will host major events, including the upcoming Asean Summit.
“The restoration plan is part of a broader effort to elevate Malaysia’s national symbols and reestablish their significance on the global stage. This is a long overdue move after years of discussions with no concrete action.”
The minister highlighted that Khazanah’s involvement ensures that the project is backed by both financial strength and strategic planning.
“By integrating heritage preservation with modern urban development, the initiative seeks to create a balance between history and progress. The move also supports the government’s push for sustainable urban renewal, reinforcing Malaysia’s commitment to thoughtful city planning,” he said.
Furthermore, Nga said KPKT is introducing a new ‘People’s Residential Programme’ (PRR) which encourages state government and private developers to surrender land to KPKT in considering PRR developments in their respective areas.
“The government has received 32 land plots from various state authorities for PRR development, emphasising a ‘4P’ approach – People, Public, Private Partnership,” he added.
Developers who choose to surrender land for the PRR programme will have the opportunity to negotiate exemptions from the mandatory 30% affordable housing quota, creating a win-win situation for both the public and private sectors.
“This initiative is designed to incentivise developers to contribute to national housing goals while maintaining project viability. By allowing exemptions, the government ensures that land contributed for PRR projects is efficiently utilised for public housing, while developers can focus on high-value projects without the obligation to allocate a portion of their units for affordable housing,” Nga said.
In addition, he disclosed that KPKT is advancing the proposed Residential Tenancies Act, which aims to regulate tenancy agreements in a fair, neutral and non-discriminatory manner.
“The legislation will introduce a structured mechanism to resolve tenant-landlord disputes efficiently, ensuring stability and professionalism in the rental market. By addressing common issues such as unfair rental terms and tenant rights, the Act seeks to create a balanced framework that benefits both property owners and renters.”
Nga also highlighted the urgent need to curb illegal partitioning of rental units, which poses serious safety risks.
For example, he said, a single shop lot was illegally subdivided into 75 tiny rooms, lacking ventilation and basic living conditions.
Nga warned landlords engaging in such practices that they would be held personally liable, facing penalties of up to five years in prison.
“Public safety is the government’s top priority, professional real estate agents are urged to report illegal partitioning to authorities, reinforcing KPKT’s firm stance against unsafe housing practices,” he said.
Meanwhile, the two-day Marec 2025 serves as a platform for industry leaders, policymakers and real estate professionals to discuss emerging trends, regulatory updates and market opportunities. The convention emphasises the importance of sustainable urban development, innovative housing solutions and strategies to enhance Malaysia’s real estate sector.
