Nearly RM220m in govt funds used to recover abandoned home projects

KUALA LUMPUR (Nov 7): A total of 253 abandoned private housing projects, comprising 64,290 units, were reported in Peninsular Malaysia between January 2009 and Oct 11 this year, said the Ministry of Urban Wellbeing, Housing and Local Government.

These projects, according to the Ministry, are those recognised under the Housing Development (Control and Licensing) Act [Act 118].

In a written reply in the Dewan Rakyat, the ministry said that of the 64,290 abandoned home units, 51,157 units were completed or occupied (projects taken over by the government), 4,201 units were being recovered while the remaining 9,932 units were still under early planning.

“A majority or 29,133 of the total abandoned units were situated in Selangor. There were 8,839 abandoned home units in Johor, 4,340 units in Negeri Sembilan while the rest are spread across the remaining nine states in Peninsular Malaysia,” the ministry said.

In the same period, 32 out of 190 completed projects were recovered using government funds, with total costs amounting to about RM219.79 million, it added.

Meanwhile, in reply to a question by Pasir Puteh MP Datuk Dr Nik Mazian Nik Mohamad if the ministry will add a clause on the insurance and takaful obligations imposed on buyers affected by the housing abandonment issue as a condition of the mortgage levied, it said the home buyers will need to bear the fees of both the liquidator and the solicitor's liquidator.

Among the various reasons, the minister said this is because the original developer of the housing project has been wound up as a result of not having sufficient funds or assets to complete or continue the project. — theedgemarkets.com

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