Govt Rescues RM57 Billion Worth of Abondened Housing Projects

The Ministry of Housing and Local Government’s Task Force for Sick and Abandoned Private Housing Projects (TFST) said it has successfully rescued 663 housing projects, benefiting 78,554 buyers with a Gross Development Value (GDV) of RM57.09 billion over the past two years.

During a parliamentary session today, Housing and Local Government Minister Nga Kor Ming reported TFST’s accomplishments in 2023, resolving 452 sick and abandoned private housing projects, comprising 53,697 units valued at RM39.814 billion.

“In addition, as of 31 May this year, 211 sick and abandoned private projects have been revived, involving 24,857 housing units with a GDV of RM17.28 billion,” he stated.

Nga responded to queries from Manndzri Nasib (BN-Southeast) regarding ministry assistance for homebuyers affected by “sick projects,” especially under public housing initiatives like RumaWip, which primarily serve the B40 group. He highlighted KPKT’s regular monitoring and site visits to project locations, collaborating closely with technical agencies and local authorities (PBT) to devise preventive measures and solutions with developers.

Nga also mentioned the ministry’s initiative to submit a list of affected buyers from government housing projects such as Residensi Wilayah, PRIMA, Program Perumahan Penjawat Awam (PPAM), and Syarikat Perumahan Negara Berhad (SPNB) to the Public Sector Housing Financing Board (LPPSA) for loan restructuring considerations.

“KPKT is continuously seeking the most suitable and effective alternatives to rehabilitate sick and abandoned private housing projects,” he added.

Addressing legislative amendments under the Housing Development (Control and Licensing) Act 1966 (Act 118) to prosecute developers involved in fraud or stalled projects, Minister Nga stressed efforts to prevent them from fleeing the country.

Responding to additional queries from Roslan Hashim (PN-Kulim Bandar Bahru) about delays in PRIMA housing projects, Nga acknowledged 24 projects in critical condition. He affirmed KPKT’s implementation of various resolution approaches, including stringent feasibility studies for all new PRIMA projects and contract terminations for contractors lacking outstanding performance records or engaging in unwarranted profit-making.

“With the proactive steps currently underway, I am confident that all 24 ailing PRIMA projects will be completed by the end of this year,” he concluded.

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