Ministry Revives RM98.96 Billion Worth of Abandoned Housing Projects
A Significant Milestone in Malaysia’s Push to Restore Investor Confidence
The Housing and Local Government Ministry has revived a staggering RM98.96 billion worth of abandoned housing projects, marking a significant milestone in Malaysia’s push to restore investor confidence and uplift the construction sector.
Accelerating Project Recovery and Stabilizing the Property Market
Minister Nga Kor Ming said that 1,016 abandoned housing projects comprising 122,083 units have been brought back to life since the establishment of the Task Force on Sick and Abandoned Private Housing Projects in late 2022. The minister emphasized that the ministry’s proactive approach, through tighter coordination with developers, financial institutions, and local authorities, has not only accelerated project recovery but also helped stabilize the broader property market, offering renewed assurance to both domestic and foreign investors.
New Act to Focus on Property Management Industry
Nga disclosed that the ministry is preparing to introduce a new Act focused solely on the property management industry, a sector currently regulated only as a subset of broader laws. With just 594 licensed property management firms serving over 2.9 million strata units nationwide, the upcoming legislation is expected to fill a critical vacuum and create a more professional, accountable strata management ecosystem. “This will be a game-changer,” he said, noting that unregulated and inexperienced joint management bodies have become a root cause of poor building maintenance, disputes, and resident dissatisfaction.
Regulatory Enforcement Stepped Up
Furthermore, he noted that the ministry has stepped up regulatory enforcement. As of March 2024, 109 developers have been blacklisted, with RM10.28 million in compound fines issued for non-compliance with Housing Development Act provisions. This sends a clear message: we will no longer tolerate developers who fail their obligations. The blacklist, which is publicly accessible via the National Housing Department’s portal, is part of KPKT’s (ministry’s) broader effort to improve transparency and accountability in the housing sector.
Bidding for UN-Habitat Executive Board Seat
Positioning Malaysia as a forward-looking leader in sustainable development, Nga announced that the country is bidding for a seat on the executive board of the United Nations Human Settlements Programme (UN-Habitat), a key global body shaping the future of urbanisation. “As current Chair of the Asean Ministerial Meeting on Housing and Urban Development (AMMHUD), Malaysia is not only influencing regional policy but also seeking a stronger voice at the international table,” he said.
Urban Renewal Act to Tabled this June
Malaysia is ready to contribute to the world’s urban future, from smart cities to inclusive housing policies, he said. “Our participation in global platforms will help us share our policy ideas, form new partnerships, and align with world-class standards.” The ministry is aiming to table the Urban Renewal Act or Akta Pembaharuan Semula Bandar this June, which consists of four key elements – urban redevelopment, urban regeneration, urban revitalisation, and urban conservation. “Our utmost priority is to ensure a structured and inclusive approach to development, in line with our principle of ‘leave no one behind’,” Nga said.
Conclusion
The revival of abandoned housing projects and the introduction of new legislation and regulations demonstrate the ministry’s commitment to restoring investor confidence and uplifting the construction sector. Malaysia’s bid for a seat on the UN-Habitat executive board and its efforts to table the Urban Renewal Act further solidify its position as a forward-looking leader in sustainable development.
FAQs
Q: What is the total value of the revived abandoned housing projects?
A: The total value of the revived abandoned housing projects is RM98.96 billion.
Q: How many abandoned housing projects have been revived?
A: 1,016 abandoned housing projects comprising 122,083 units have been revived.
Q: What is the purpose of the new Act focused on the property management industry?
A: The new Act aims to create a more professional, accountable strata management ecosystem and fill a critical vacuum in the sector.
Q: What is the current number of licensed property management firms in Malaysia?
A: There are 594 licensed property management firms serving over 2.9 million strata units nationwide.