Written by Muhazrol Muhamad GVP, Head of Bumiputra Segment

Malaysia is moving toward a safer and more buyer-focused property landscape through the Build Then Sell (BTS) 10:90 model, marking a major evolution from the traditional Sell-Then-Build structure. Driven by the Ministry of Housing and Local Government, the BTS 10:90 system requires buyers to pay only a 10 percent deposit upon signing the Sale and Purchase Agreement, while the remaining 90 percent is paid only after full completion, issuance of the Certificate of Completion and Compliance and formal delivery of Vacant Possession. This approach shifts construction and financing responsibilities back to developers and significantly reduces buyer exposure to project delays or failures.

Importantly, the government has confirmed the policy will not be mandatory, ensuring that small and mid-sized developers are not pushed out of the market. To encourage voluntary adoption, the government is preparing a suite of incentives, building on existing benefits such as fast-tracked planning approvals and exemption from the 3 percent Housing Development Account deposit. New incentives will be detai miled under the 13th Malaysia Plan and the 2026 Budget.

The BTS model enhances homebuyer protection by drastically reducing the risk of “sick” or abandoned projects, while also promoting higher construction quality since developers receive the bulk of payment only after delivering a fully compliant product. With the national goal of achieving zero sick and abandoned projects by 2030, this voluntary BTS framework has the potential to redefine buyer confidence and elevate Malaysia’s housing delivery standards for the long term.