The Path Toward Affordable Green Housing and Green Mortgage Standards in Malaysia
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Publication Type:
Publisher:
Asian Development Bank (ADB)
Publication:
May 2026
This report examines barriers to affordable green housing in Malaysia and recommends measures to overcome them.
House prices have been rising faster than the average wage in Malaysia, making it a challenge for citizens to afford housing, with low-income groups typically prioritizing affordability over green features.
Under the 13th Malaysia Plan, the government is targeting to build 1 million affordable housing units from 2026 to 2035. Green housing standards though are currently voluntary, despite existing building standards and incentives to encourage the adoption of green building practices.
A joint publication between ADB and Cagamas Berhad, the Malaysian national mortgage corporation, this report evaluates the green housing sector and assesses housing cost inflation. Highlighting the need for greater public awareness and tailored financial products for low-income groups and female-headed households, it shows how the government, financial institutions, and property developers can work together to help fill financing gaps and strengthen the wider green affordable housing ecosystem.
Contents
- Introduction
- Malaysia’s Ecosystem for Green and Affordable Housing
- Supply and Demand of Green and Affordable Housing
- Financing for Green and Affordable Housing
- Costs and Benefits
- Summary and Potential Measures to be Taken to Overcome Challenges
- Annexes
