Speaking to the Sun Daily, housing and local government minister Datuk Seri Chor Chee Heung stated: "There is a strong need for better government policies to make sure property prices are reasonable and affordable."
Mr Chor added that it is parliament's job to "mitigate excessive investment and speculative activity" in Malaysia's property sector, otherwise the nation could be faced with a real estate bubble that threatens the economy.
The government official made the comments following his appearance at the 15th National Housing and Property Summit organised by the Asian Strategy and Leadership Institute.
In his speech at the conference, Mr Chor said the policies introduced in the country's 2013 budget have not been particularly effective at preventing significant property price increases, Malaysian Reserve reported.
He added that there are concerns among many people in the country that homeownership is now out of reach for the majority of Malaysians.