Nga maintained that Malaysia practised free market principles and that the government intervening in people’s investment in properties would not augur well for the economy as a whole.
“We need to understand that Malaysia is a democratic country. We respect the market. The more important thing is ensuring that there is a sufficient supply of homes. We are not a communist country where we prevent people from buying property.
“If we were to implement such a policy, I am very confident the property market would collapse.
“Our property sector is tied to over 200 industries, from contractors to plumbers, to the banking sector and beyond. If the property sector collapses, imagine the repercussions,” he said at a press conference here today.
Nga said that investing in property was not only a legitimate form of wealth preservation but also an effective tool to combat inflation.
The proposal was floated by former Umno leaders Khairy Jamaluddin and Shahril Hamdan, who said such limits could make houses more affordable.
Real estate negotiator Iwin Tay said the cap would help to stabilise property prices and ease demand pressures on the housing market, especially in areas with a limited supply, such as Kuala Lumpur.
However, the National House Buyers Association said such a cap should only be on homes an individual can purchase in the affordable housing category and not apply to other types of property.
Separately, Nga said the property sector has exceeded expectations this year. While his ministry had aimed to see RM100 billion in property sales in 2024, this had been surpassed within the first six months of the year.
“The total transaction value for the first half of 2024 was over RM100 billion,” he added.
He said the ministry now plans to amend the Housing Development (Control and Licensing) Act 1966 to tighten conditions for developers. One proposed amendment is to bar developers involved in fraud from exiting the country.
“They will be blacklisted – not only the developers themselves but also their families,” he said.