Nga: Buyers of 'sick' housing projects can seek loan restructuring with govt support letters

• Local Government Development Minister Nga Kor Ming, in his written reply to Parliament, said that his ministry will issue the letter through the Department of National Housing to affected buyers to help ease their financial burden.
• He said that a total of 429 housing projects had been categorised as “sick” projects as of Jan 31, 2023, involving 70,727 residential units with a total of 29,147 buyers.

KUALA LUMPUR (Feb 16): Buyers of “sick” private housing projects can apply to their financiers for loan restructuring with supporting letters from the government, said Local Government Development Minister Nga Kor Ming (pictured).

Nga, in his written reply to Parliament, said that his ministry will issue the letter through the Department of National Housing to affected buyers to help ease their financial burden.

He said that a total of 429 housing projects had been categorised as “sick” projects as of Jan 31, 2023, involving 70,727 residential units with a total of 29,147 buyers.

The Teluk Intan Member of Parliament was responding to Kota Melaka MP Khoo Poay Tiong, who also enquired about measures by the ministry to overcome “sick” housing.

A licensed private housing project is categorised as a “sick” project when the sale and purchase agreement has expired, or when the project is delayed by more than 30% compared to its scheduled progress.

Nga said the ministry had displayed a list of “sick” housing projects on the Department of National Housing portal.

“This list of projects can be used as a guide by potential homebuyers and financiers before approving a new housing loan and controlling progress payments to existing developers,” he said.

The ministry has also frozen the housing development account for selected “sick” projects to avoid irresponsible withdrawals of money by developers, and blacklisted developers and directors of these companies from applying for a new advertising permit as long as the existing sick project has not been completed with a Certificate of Completion and Compliance.

Nga said “sick” projects with no progress on site for a long period of time are confirmed as abandoned projects in accordance with the Housing Development (Control And Licensing) Act 1966.

Among the preventive measures, he said the government would hold a smart partnership programme with state governments, state housing and real estate boards, local authorities, government agencies, technical agencies, and developers.

He said the ministry also plans a private housing forum with stakeholders and industry players, such as the Real Estate and Housing Developers' Association Malaysia and liquidators.

“The ministry encourages the use of new technologies in construction, such as the industrialised building system and alternative building materials, to speed up the completion of housing projects at a cheaper cost without affecting the quality of construction,” Nga said.