Local Government Ministry successfully revives 256 private housing projects worth RM23.37b

• “The ministry has also taken action to freeze 20 housing development accounts (HDA) for projects in the sick category."

KUALA LUMPUR (Oct 24): The Local Government Development Ministry has successfully revived a total of 256 private housing projects, comprising 28,363 housing units, with a gross development value (GDV) of RM23.37 billion, as of August this year.

Deputy Minister Akmal Nasrullah Mohd Nasir (pictured) said a majority of these housing projects have been granted Certificates of Completion and Compliance (CCC), while the rest have had their status changed to "in progress".

“Breaking down the numbers, 225 private housing projects, involving 19,945 housing units with a GDV of RM18.09 billion, have received CCC. 

“The remaining 31 housing projects, which include 8,418 housing units with a GDV of RM5.28 billion, have had their status changed to 'in progress',” he said in response to a question from Chiew Choon Man (PH-Miri) during an oral question and answer session in Dewan Rakyat on Tuesday.

Akmal also clarified that private housing projects in East Malaysia fall outside the jurisdiction of the ministry. 

Therefore, the ministry welcomes the Sarawak and Sabah state governments to integrate with the ministry’s housing integrated management system (HIMS).

This integration is aimed at ensuring that the tracking of developers causing sick projects in Peninsular Malaysia is shared with East Malaysia and vice versa, Akmal noted.

“The Sarawak government has expressed interest in integrating with the ministry's system, and we hope that the Sabah state government will also follow suit,” he added.

Special Guarantee Fund will focus on affordable housing projects below RM300,000

Responding to another question from Zahir Hassan (PH-Wangsa Maju), Akmal said the ministry will submit suggestions to the Ministry of Finance on how the special guarantee fund will be used to rescue sick housing projects, with a specific focus on affordable housing projects priced below RM300,000.

Akmal said that the ministry has suggested prioritising housing projects that are at least 80% "in progress" and those under government and state agencies, with affordability objectives that are at risk of becoming sick.

Prime Minister Datuk Seri Anwar Ibrahim, who also serves as finance minister, announced in the 2024 Budget on Oct 13 that the government has allocated RM2.47 billion for the implementation of people's housing projects (PPR) in the coming year. 

This allocation includes a special RM1 billion guarantee fund to encourage responsible developers to revive abandoned projects that have been identified.

Meanwhile, Akmal revealed that a total of 284 compounds were issued to housing developers for offenses under Section 7 (e) of the Housing Developers (Control and Licensing) Act 1966 in 2022 and 2023.

Section 7 (e) of Act 118 stipulates that developers must send and publish, within six months after the end of the financial year, a copy of the auditor’s report, balance sheet, and profit and loss account, to the Housing Controller.

“The ministry has also taken action to freeze 20 housing development accounts (HDA) for projects in the sick category. This freezing action is based on an investigation that shows that the developer is neglecting their responsibilities, which could adversely affect the interests of the buyers,” added Akmal.

He further noted that developers can be fined up to a maximum of RM50,000, if they fail to fulfill their obligations as stipulated in the Housing Developers (Control and Licensing) Act 1966 and its regulations.

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