{
  "id": 9295926,
  "title": "81pct of developers report higher business costs in 1H 2026",
  "url": "https://urgent.news/2026/09/23/81pct-of-developers-report-higher-business-costs-in-1h-2026",
  "topic": "world",
  "section": "World",
  "published": "2026-09-23T07:53:05.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/property/2026/09/1539261/81pct-developers-report-higher-business-costs-1h-2026"
  },
  "original_language": "en",
  "account": "KUALA LUMPUR: A recent market survey conducted by the Real Estate and Housing Developers Association of Malaysia (Rehda) revealed that 81% of developers reported increased business expenses in the first half of 2026 (1H 2026), compared to 74% in the same period last year (2H 2025). The survey encompassed 181 developers and found that among those experiencing higher costs, 35% indicated an increase ranging between 3% to 6%. Rehda's president, Datuk Zaini Yusoff, attributed this rise to a 13% average increase in construction costs, although the impact varied by project type. Earthworks and infrastructure projects saw the most significant hike, between 20% to 30%, while standard building works experienced a smaller increase, of about 3% to 5%. The surge in costs can be linked to higher prices for diesel-related products, including bitumen, due to the ongoing conflict in the Middle East. The top three building material-related challenges faced by developers included high material prices, supply shortages, and inconsistent supply. For labour, the primary issues were high wages, a shortage of labor supply, and a lack of skilled workers. Zaini Yusoff stated that ongoing projects generally remain within their budget, while new contracts could be priced slightly higher to account for the increased costs, typically with a contingency of 3% to 5%. Despite the ongoing conflict in the Middle East, Zaini does not anticipate a significant further rise in construction material prices, as prices have officially stabilized after the initial increase. He also noted that even amidst the conflict, buyers will likely remain cautious in the first half of 2027, depending on developments in the Middle East, but developers will continue to provide homes across all market segments.",
  "summary": "KUALA LUMPUR: The Real Estate and Housing Developers’ Association (Rehda) Malaysia’s market survey showed that 81 per cent of respondents reported higher costs of doing business in the first half of 2026 (1H 2026), up from 74 per cent in the second half of 2025 (2H 2025).",
  "key_points": [
    "81% of developers reported higher business costs in 1H 2026",
    "Earthworks and infrastructure projects saw the most significant cost increase",
    "High material prices and labor shortages attributed to Middle East conflict"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Bernama",
        "title": "Business : REHDA: 81 Pct Of Developers Report Higher Business Costs In 1h 2026",
        "url": "https://urgent.news/2026/09/23/business-rehda-81-pct-of-developers-report-higher-business-costs-in",
        "published": "2026-09-23T05:55:41.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}