Govt rehabilitates 1,647 abandoned housing projects worth RM153bil
KUALA LUMPUR: The government has rehabilitated 1,647 abandoned private housing projects worth RM153 billion, benefiting nearly 200,000 homebuyers, said Housing and Local Government Minister Nga Kor Ming.
The Malaysian government has successfully rehabilitated 1,647 abandoned private housing projects, valued at RM153 billion, benefiting around 200,000 homebuyers, announced Housing and Local Government Minister Nga Kor Ming. This initiative is part of a nationwide effort to eliminate abandoned housing projects by 2030, a pivotal goal outlined in the recently introduced National Housing Policy 2026-2035.
Without government intervention, these homebuyers would have been left with burdened projects. The minister emphasized the government's commitment to strengthening the housing reform agenda to achieve the zero-abandoned-project target by 2030.
Nga Kor Ming stated that prevention is always better than cure, highlighting the government's implementation of digital and audit-based reforms to avoid stalled projects. These reforms include the Housing Integrated Management System (HIMS), electronic Sales and Purchase Agreements (e-SPAs), and regular audits of Housing Development Accounts (HDA). The government is also advancing towards electronic SPAs, allowing signatories to purchase a house remotely, regardless of their location.
The ministry is exploring an Option to Purchase (OTP) mechanism with a sunset clause, as proposed in the Real Property Development Bill. Under this mechanism, developers who deem a project unviable within a specified timeframe can withdraw, returning the buyer's deposit (100% plus bank interest) and providing a legal exit point for both parties before signing the Sales and Purchase Agreement.
Conversely, buyers who find a more suitable property within the same timeframe can also exit the deal, subject to certain charges. This provision aims to prevent developers from proceeding with large-scale projects despite poor sales, a primary cause of stalled or abandoned developments.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
