KUCHING: Sarawak is facing a structural demographic shift driven by a declining birth rate that will inevitably alter the state’s long-term housing market and industrial needs.
Deputy Premier Datuk Amar Dr Sim Kui Hian said that shrinking family sizes are reducing the overall population growth, creating a situation where the state could see more homes than people in the future.
“Number one, I totally agree that we are a small population. Our population gets smaller,” he said at the opening of the SHEDA Property Expo 2026 at Voco Kuching today.
He noted that changing social norms, including declining marriage rates, higher divorce rates and smaller family sizes, naturally reduce population figures.
He highlighted that Department of Statistics Malaysia (DOSM) figures already show a structural surplus in overall housing supply, with over 700,000 existing residential units compared to roughly 600,000 households.
“So, already there are more than 100,000 houses than households. Right now, the core issue is distribution – rural-to-urban migration, and people buying properties for investment,” he said.
Addressing real estate and industrial stakeholders, Dr Sim urged all sectors to adapt to demographic realities rather than relying on unsustainable quick fixes.
He cited declining Chinese primary school enrolments as a clear indicator of demographic contraction, pointing out that one former 1,000-student school now enrols only 900 pupils, 20 per cent of whom are Bumiputera.
“These are facts that we need to realise, and every industry must learn how to address it,” he said, cautioning against suggestions of mass immigration as a solution to population shortfall, noting that state nation-building requires localised, long-term policy adjustments.
Turning to climate action, the Public Health, Housing and Local Government Minister reiterated Sarawak’s commitment to environmental sustainability under the Post COVID-19 Development Strategy (PCDS) 2030.
He noted that while Sarawak has achieved net-zero ambitions, the state remains vulnerable to broader global climate impacts if major world economies fail to act.
“We are net zero. But unless major global emitters do something, we are at their mercy,” Dr Sim added, emphasising that international accountability remains critical to protecting local communities from extreme environmental changes.
He urged stakeholders to work closely with state agencies, including his ministry, to navigate policy frameworks, update building ordinances, and align housing developments with Sarawak’s 2030 socioeconomic goals.
