Formulating legal framework towards achieving sustainability of affordable housing programme in Malaysia

Abstract

Providing affordable housing is a significant challenge in Malaysia, especially for the middle-income group (M40), who do not qualify for low-cost housing and struggle to afford market-priced homes. Five structural problems have been identified: inadequate supply of affordable housing, lack of access for the M40 group, inconsistent concepts and policies across federal and state jurisdictions, and over-regulation of the housing development process. This study aims to formulate a legal framework towards achieving the sustainability of the affordable housing programme for the middle-income group in Malaysia. Three research objectives are first, to analyse the concept of affordable housing in ensuring the accessibility of the programme by the middle-income group; second, to study the legal framework on the affordable housing programme in guaranteeing housing ownership for the middle-income group; and third, to formulate and recommend improvements to the legal framework towards achieving the sustainability of the affordable housing programme for middle-income groups in Malaysia. This study uses a qualitative approach, blending traditional legal research with methods such as interviews and focus group discussions with relevant stakeholders. It conducts a PESTEL analysis (assessing Political, Economic, Social, Technological, Environmental, and Legal factors) across three regions: Malaysia, Victoria (Australia), and Singapore. To further validate the methodology, a case study of Residensi PR1MA Alam Damai in Cheras, Selangor is included, highlighting how the PESTEL framework works in practice. The research yields four primary discoveries. First, Malaysia lacks a standardised statutory definition of affordable housing; the study proposes a six-element definition integrating financial sustainability, human rights, community infrastructure, distributive social justice, and the Maq??id al-Shar??ah. Second, the existing legal framework is fragmented across multiple unharmonised statutes, including the Housing Development (Control and Licensing) Act 1966, the National Land Code (Act 828), and the Perumahan Rakyat 1Malaysia Act 2012, with no dedicated legislation for the affordable housing programme. Insights from Victoria and Singapore reveal that comprehensive statutory frameworks significantly enhance programme sustainability. Third, the PR1MA Alam Damai case study validates that good administrative practice cannot substitute for legislative infrastructure, as programme sustainability remains dependent on political will. Fourth, the study proposes an enhanced legal framework structured around seven pillars, operationalised through a draft outline of a proposed National Affordable Housing (Framework) Act aligned with the Dasar Perumahan Negara 2018�2025 and the Dasar Perumahan Mampu Milik Negara 2019. The proposed framework adapts best practices from Victoria, Australia and Singapore, while respecting three limitations: Malaysia�s federal constitutional structure, the Islamic jurisprudential dimension, and the socio-economic context. The integration of the Maq??id al-Shar??ah and waqf-housing partnership provisions represents original contributions with no direct foreign precedent. The study recommends legal reforms, strengthened intergovernmental coordination, enhanced financing mechanisms including waqf-housing partnerships and the legislative consolidation of existing policy efforts into a sustainable, unified framework. It further emphasises the need to improve urban planning to enhance affordability and accessibility, offering valuable guidance for policymakers, legal practitioners, and urban planners to ensure programme continuity across political cycles.