A proposed moratorium on new residential projects in the capital will have several negative implications on Kuala Lumpur’s economy, says federal territories minister Dr Zaliha Mustafa.
In a Bernama report, she said a moratorium on new housing projects would weaken Kuala Lumpur’s gross domestic product, which depends heavily on the construction and real estate-related services sector.
“It would also reduce Kuala Lumpur City Hall’s revenue collection from development-related fees, while property prices and rental rates would increase,” she said.
“(This would) lead to the outward migration of residents, particularly from the B40 and M40 groups.”
However, Zaliha acknowledged the need to reassess the balance between physical development and the city’s increasing population, particularly in terms of infrastructure, affordable housing, environmental sustainability, and residents’ quality of life.
She was responding to a question from Young Syefura Othman (PH-Bentong) on whether the government intends to impose a moratorium on residential projects in Kuala Lumpur.
Young Syefura cited a statistics department report which stated that the city would reach peak population in 2031, some 28 years earlier than the national projection.
