Addressing the Issue of Abandoned Housing Projects
Government’s Efforts to Restored and Complete Abandoned Projects
The Ministry of Housing and Local Government has made significant progress in restoring and completing abandoned private housing projects. As of September 30, a total of 14 abandoned private housing projects with a gross development value of half a billion ringgit have been restored or completed in the past two years, according to a written reply by Housing and Local Government Minister, Nga Kor Ming.
Number of Projects and Homes Involved
These projects involved a total of 1,901 homes, valued at RM574.79 million, and were restored or completed under the purview of the task force on sick, delayed, and abandoned private housing projects set up in 2022.
Efforts to Prevent Abandonment
Nga Kor Ming highlighted the effectiveness of the existing policy in addressing the issue of abandoned housing projects, stating that the ministry will continue to improve on this policy to achieve zero sick housing projects by 2030.
What Constitutes an Abandoned Housing Project
A housing project is considered abandoned if it is not completed within the time frame stipulated in the sale and purchase agreement and where no construction work is carried out for six consecutive months. Additionally, a project is deemed abandoned if confirmed by the minister as stipulated under the Housing Development (Control and Licensing) Act 1966 or Act 118.
Ministry’s Efforts to Fine-Tune Laws
The ministry is currently fine-tuning Act 118 as a long-term measure to avoid housing projects from becoming "sick" and later abandoned. The amendments include blacklisting developers and the board of directors to prevent them from leaving the country.
FAQs
- What is the current state of abandoned housing projects in Malaysia?
As of September 30, a total of 14 abandoned private housing projects with a gross development value of half a billion ringgit have been restored or completed in the past two years. - What is the target of the Ministry of Housing and Local Government in addressing abandoned housing projects?
The ministry aims to achieve zero sick housing projects by 2030. - What are the criteria for considering a housing project as abandoned?
A housing project is considered abandoned if it is not completed within the time frame stipulated in the sale and purchase agreement and where no construction work is carried out for six consecutive months, or if confirmed by the minister as stipulated under the Housing Development (Control and Licensing) Act 1966 or Act 118. - What are the proposed amendments to Act 118 to prevent abandoned housing projects?
The ministry is fine-tuning Act 118 to include blacklisting developers and the board of directors to prevent them from leaving the country.