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Housing

Malaysia to Strengthen Housing Development Regulations

Strategic Insights

— 2 min read

The Housing and Local Government Ministry (KPKT) is set to table proposed amendments to the Housing Development (Control and Licensing) Act 1966 to address problematic commercial projects and enhance preventive measures. Minister Nga Kor Ming emphasized the need for comprehensive blacklisting of board members of parent developer companies and beneficiary owners to minimize the risk of private housing projects becoming problematic or abandoned. The proposed amendments aim to strengthen long-term actions and improve the efficiency of addressing such issues.

Key Takeaways:

  • The proposed amendments to the Housing Development (Control and Licensing) Act 1966 seek to expand enforcement scope to cover problematic commercial projects.
  • The initiative aims to strengthen preventive measures and long-term actions to minimize the risk of private housing projects becoming problematic or abandoned.
  • KPKT plans to blacklist board members of parent developer companies and beneficiary owners to ensure accountability and transparency.
  • The proposed amendments will enable KPKT to take proactive measures against housing developers and companies involved in problematic projects, including freezing their Housing Development Accounts and barring them from new development licenses.
  • As of June 30, the Task Force for Sick and Abandoned Private Housing Projects has identified 233 delayed projects and 360 'sick' projects, with 220 of the latter being restored to active status.
  • The proposed system, Teduh, will allow prospective homebuyers to check the blacklist of developer companies and access comprehensive information on housing companies for reference.
  • In response to criticism over the lack of an open scoring system, Minister Nga Kor Ming emphasized the importance of the blacklist measure in protecting public rights and interests.
  • Between January and June 2023, 109 developers have been blacklisted and barred from operating in the housing development sector.
  • KPKT plans to engage with stakeholders, including enforcement agencies, legal bodies, industry players, and consumer representatives, to ensure the amendments are effective and comprehensive.

Statistics:

  • 233 delayed projects identified by the Task Force for Sick and Abandoned Private Housing Projects as of June 30.
  • 360 'sick' projects identified, with 220 restored to active status and 14 restored to active status after certification.
  • 1,127 abandoned projects successfully revived to date, benefiting 135,000 homebuyers.
  • 109 developers blacklisted and barred from operating in the housing development sector between January and June 2023.
  • 25,822 housing units involved in problematic projects.

Sources:

  • Anonymous (2023). "KPKT To Amend Housing Development Act To Increase Enforcement Scope".
  • Anonymous (2023). "Task Force for Sick and Abandoned Private Housing Projects Update".

Note: Sources have been anonymized to protect the authors' identity. The actual sources should be available from the original publication.

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