They say on a nationwide basis, Local Developers have been building less and less over the years.

There is a mismatch between supply and demand for homes. Malaysia seemed to have a severe UNDERSUPPLY of homes, on a nationwide annual basis. However, I believe that the undersupply is largely for the affordable home segment. Around RM500,000 to RM700,000 for a decent home where your family can grow.

Since 2-3 years the market have been on plateau, stagnant and developers is on a more look see mode before launching any project as there are plenty of supply especially condo

Undersupply of affordable homes but oversupply of overpriced homes in Malaysia 

Based on Bank Negara, the affordable range is RM165k-RM242k. I don't remember any developer pricing homes at that price. It is not under supply, instead, there is no supply.

https://www.thestar.com.my/opinion/letters/2019/10/18/ensure-malaysians-have-access-to-affordable-housing