Big Data Analytics' Success Depends On Structural Reforms, Integration - Experts

By Nabilah Saleh

KUALA LUMPUR, Aug 15 (Bernama) -- Big data analytics (BDA) can improve housing, but only if it delivers better outcomes and a tighter fit between supply and what households actually need.

That requires structural reforms, integrated data and sound planning. To track progress, International Institute of Public Policy and Management (INPUMA) Academic and Student Affairs deputy executive director, Dr Muhammad Danial Azman, has proposed a "housing mismatch scorecard".

“The real KPI of BDA should not be how much data the government possesses. It should be how many better housing decisions are made because of that data,” he told Bernama.

Muhammad Danial, who is also a public policy expert at Universiti Malaya, points out a paradox: Malaysia can have "too many houses" and "not enough housing" at the same time, simply because available units do not match what people can afford or where they actually need to live.

That could soon change. On Monday, Housing and Local Government Minister Nga Kor Ming said the ministry will introduce a BDA system next year to guide developers in building the right homes, at the right price, in the right places, before construction even begins.

Muhammad Danial stressed that BDA must distinguish between what people actually need, what they prefer, and what they can realistically afford.

He warned against treating online searches or expressions of interest as firm demand, without first factoring in income, loan eligibility, childcare costs, transport and other essential expenses.

“If the system treats online interest as actual demand, policymakers and developers may receive the wrong signal,” he said, adding that data must also capture lower-income families who may not generate property-search data due to financial constraints.

Meanwhile, he proposed that the BDA system should be continuously updated using data on population movement, income, employment, rental trends, property transactions, planning approvals, transport accessibility and major investments.

“Housing data should work more like Waze than a printed road map … constantly detecting changing conditions and helping policymakers recalculate the route when necessary,” he said.

On a similar note, Institute of Strategic and International Studies (ISIS) Malaysia researcher Ahmad Farhan said BDA can help bridge the information gap, but technology alone would not solve the country's property overhang or affordability issues.

Ahmad Farhan, who is from the institute's Social Policy and National Integration unit, noted that National Property Information Centre (NAPIC) data already provides a broad picture of market transactions, property types, and location-based demand.

However, he suggested taking it further by integrating that data with demographic trends, financing capacity, projected household sizes and social housing applications. This, he said, would help identify households in need, including those who may not qualify for formal financing.

He also urged developers to build more affordable homes near transit hubs and central business districts, rather than on the outskirts where distance from work and amenities only adds to the costs of daily living.

He further proposed that NAPIC be given a central governance role to ensure housing information is properly collated and regularly updated.

Ahmad Farhan also called for stronger collaboration between NAPIC and the Department of Statistics Malaysia to integrate housing data with information on household expenditure, wellbeing and public transport usage.

“Making data more digestible can help inform consumers while also ensuring independent assessment of findings,” he said.

He added that accessible analysis could help local councils align zoning and development decisions with state structure plans and the National Housing Policy.

According to NAPIC, 32,801 completed residential units worth RM16.37 billion remained unsold nationwide in the first quarter of 2026.

The Housing and Local Government Ministry initiative is designed to reduce the number of unsold homes by ensuring future supply is better aligned with household needs and current market conditions.

-- BERNAMA