KPKT To Introduce OTP Mechanism, Allowing Pre-Spa Withdrawal Flexibility

KUALA LUMPUR, May 8 (Bernama) --  The Housing and Local Government Ministry (KPKT) is studying to introduce an Option to Purchase (OTP) clause under the proposed Real Property Development Bill, aimed at giving homebuyers and developers greater flexibility to withdraw before signing the Sales and Purchase Agreement (SPA).

Housing and Local Government Minister Nga Kor Ming said the proposed measure would help both parties reduce unnecessary financial and legal commitments at an early stage. 

He said the mechanism would also allow developers to better assess actual market demand and a project’s feasibility before construction progresses further, helping to reduce the risk of sick, delayed and abandoned housing projects, as well as unsold property units caused by insufficient buyer demand.

“This move helps avoid scenarios where developers face financial bottlenecks if sales are not optimistic halfway through construction,” he said in his speech at the StarProperty Awards 2026 last night.

Nga said the initiative forms part of the broader Reformasi Perumahan MADANI agenda aimed at modernising Malaysia’s housing regulatory framework and ensuring long-term industry sustainability.

According to him, Malaysia’s property sector recorded a strong performance in 2025, achieving transactions exceeding RM240 billion, the highest level in a decade, reflecting robust market confidence amid political stability and favourable economic conditions. 

He said through KPKT’s special task force on sick and abandoned housing projects, the government has successfully revived more than 1,500 projects since December 2022, involving a gross development value (GDV) exceeding RM140 billion and benefiting over 176,000 homebuyers nationwide. 

Apart from legislative reforms, Nga said KPKT is also accelerating digital transformation initiatives across the housing ecosystem through platforms such as e-SPA, TEDUH, and the Housing Integrated Management System (HIMS). 

“We aim to achieve zero sick projects by 2030, and this requires a collective effort from everyone in the ecosystem, including industry players, to achieve it,” he said while reaffirming the government’s commitment to ensuring the continued delivery of quality, sustainable and affordable housing for Malaysians through close collaboration between the public and private sectors.

-- BERNAMA