KUALA LUMPUR (June 25): The Task Force on Sick and Abandoned Private Housing Projects (TFST), established by the Ministry of Housing and Local Government (KPKT), has successfully resolved 663 housing projects, benefiting 78,554 buyers with a gross development value (GDV) of RM57.09 billion in less than two years.
Housing and Local Government Minister Nga Kor Ming said that in 2023, the TFST completed 452 sick and abandoned private housing projects, involving 53,697 units with a GDV of RM39.81 billion.
“Meanwhile, as of May 31 this year, a total of 211 sick and abandoned private projects had been revived, involving 24,857 units with a GDV of RM17.28 billion,” he said during an oral question-and-answer session in the Dewan Rakyat on Tuesday.
He said this in response to a question from Manndzri Nasib (Barisan Nasional-Tenggara), who inquired about the forms of assistance the ministry provides to homebuyers facing issues with ‘sick projects’, especially those purchasing housing projects under the people’s housing initiatives, such as Rumawip, which primarily target those in the bottom 40% income group.
Additionally, Nga said that the KPKT conducts regular monitoring and field visits to project sites, and engages with technical agencies and local authorities to identify preventive measures or more focused solutions with developers.
He said this includes submitting a list of buyers affected by government housing projects, such as Residensi Wilayah, PR1MA, the Civil Servant Housing Programme (PPAM) and those under Syarikat Perumahan Negara Bhd (SPNB), to the Public Sector Home Financing Board (LPPSA) to consider restructuring loan payments for them.
“The KPKT is always seeking the best and most effective alternatives for the recovery of sick and abandoned private housing projects,” Nga said.
According to him, the ministry is also in the process of amending the Housing Development (Control and Licensing) Act 1966 (Act 118) to prosecute developers involved in fraud or abandoned projects, even prohibiting them from leaving the country.
Responding to Manndzri’s supplementary question on whether the ministry is prepared to address potential delays in housing project completions due to diesel price increases, Nga said that the targeted diesel subsidies should not affect housing prices.
“All parties are aware that the commercial sector (construction) does not receive subsidies…there were none before, and there are none now… so, I don’t think there will be any direct impact on house prices. However, the KPKT will continuously monitor and ensure that there is no unnecessary profiteering in this regard,” he said.
In response to a supplementary question from Roslan Hashim (Perikatan Nasional-Kulim Bandar Bahru) regarding delayed PR1MA housing projects, Nga said that there are currently 24 housing projects classified as ‘sick’. He stressed that his ministry had already implemented several measures.
“For all new PR1MA projects, the KPKT is obligated to conduct a feasibility study. If a project is found not to be viable, unfortunately, it cannot proceed. Contractors with a poor track record or those attempting to exploit the situation will have their contracts terminated,” the minister said.
“Based on the proactive measures currently in place, I am confident that all 24 PR1MA projects will be completed by year end,” he added.
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Source: EdgeProp.my
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