Cagamas and Monash Business Chart Path to Scaling Green Affordable Housing in Malaysia

The School of Business research team and representatives from Cagamas Berhad pose for a group photo following the research launch. From left to right: Afiq Akmal Mohamad, Yusniza Wan Yahya, Kameel Halim, Prof. Mohan Avvari, Dr. Norita Nasir, Dr. Edwin Lim, Dr. Tee Chwee Ming, Dr. Mei Yee Lee, and Dr. Puspavathy Rassiah

The School of Business at Monash University Malaysia, in collaboration with Cagamas Berhad (“Cagamas”), has launched a new research report examining the challenges and opportunities for scaling Green Affordable Housing (GAH) supply in Malaysia.

The research launch opened with remarks by Professor Avvari V. Mohan, Deputy Head (Research and Engagement & Impact) at the School of Business, Monash University Malaysia followed by remarks from Kameel Abdul Halim, President/Chief Executive Officer, Cagamas Berhad. The research findings were subsequently presented by lead researcher Dr Norita Mohd Nasir, Lecturer in Accounting, and Deputy Director of Undergraduate Studies at the School of Business.

Kameel Abdul Halim, Professor Avvari V. Mohan and Dr. Norita Nasir address the audience during the research launch. Kameel Abdul Halim, Professor Avvari V. Mohan and Dr. Norita Nasir address the audience during the research launch.

The study highlights a fundamental tension between housing affordability and sustainability. While green features can deliver environmental, social and long-term financial benefits, their adoption can also increase development costs at a time when affordable housing prices remain tightly constrained. Developers identified the cost of green materials, energy-efficient technologies and compliance requirements as key challenges to wider adoption.

The report proposes an integrated approach centred on four key areas: financial support, regulatory reform, market development and technology adoption. Recommendations include targeted grants and subsidies to offset the additional costs of green features, expanded green financing mechanisms, simplified certification pathways, clearer regulatory implementation, capacity building and greater public awareness of the long-term benefits of GAH.

The research also highlights the potential role of Cagamas in helping to bring these recommendations to scale. Established in 1986 as Malaysia’s National Mortgage Corporation, Cagamas was created to promote home ownership and develop the secondary mortgage market by providing liquidity to housing lenders. Its potential role in GAH builds on this mandate, positioning Cagamas as a potential strategic ecosystem coordinator across housing finance, capital markets and policy.

The launch presentation emphasised that the tension between housing affordability and climate action is structural, but can be addressed through coordinated action. As the research demonstrates, progress will require collaboration across government, financial institutions, developers, regulators and industry bodies.

The School of Business research team and representatives from Cagamas Berhad pose for a group photo following the research launch. The School of Business research team and representatives from Cagamas Berhad pose for a group photo following the research launch.

Reflecting on the research, Professor Edwin Lim, Head of Department of Accounting and Associate Professor of Accounting at the School of Business, highlighted that the study was fundamentally shaped by the perspectives of those working directly within the housing market, reinforcing its practical and industry-informed approach.

Ultimately, the research presents GAH not simply as an aspiration, but as a practical opportunity to make sustainable and affordable housing more accessible to Malaysians. Realising this potential will require stronger collaboration, targeted financing and coordinated action across the housing ecosystem.

The full report can be accessed HERE.