KUALA LUMPUR (Nov 21): Second Finance Minister Datuk Seri Johari Abdul Ghani reiterated the need for Malaysia's freeze on development approvals for shopping complexes, offices, serviced apartments and luxury condominiums priced over RM1 million, to safeguard the banking sector.

Johari said the freeze, which started since Nov 1 this year, followed Bank Negara Malaysia's (BNM) advice. He said the freeze will not affect projects that have been approved.   
 
“There is no such thing as a U-turn. How long (this freeze will last) depends, we have to relook the situation,” Johari told reporters on the sidelines of the Malaysian Institute of Economic Research (MIER) National Economic Outlook Conference 2018-2019 today.  

“If we don’t regulate this situation based on BNM’s advice, it could affect the banking sector, because these projects go to the banks for financing. So far, it is still good in the banking sector,” Johari said.

Johari said projects for condominiums priced below RM1 million will continue, as the government recognises the high demand for affordable housing.

“We are not stopping (developers) from developing. But for anything above RM1 million, then we have to look at the stock, based on the statistics we have,” he said.