THE government has come up with several initiatives to help home buyers who are affected by “sick” and abandoned projects, Deputy Local Government Development Minister Akmal Nasir said. 

To assist home buyers, the ministry has come up with recommendation letters to financial institutions for abandoned or sick projects. 

This, he said, is so that banks can give a reduction or exemption of the interest rate or to renegotiate housing terms with the the Public Sector Housing Finance Board.

“The ministry is currently taking measures such as becoming a mediator to find solutions with the buyers or assist the developers to complete the projects.

“We have already set up a task force to monitor abandoned and sick projects, to find solution to the issues with the various state governments and all relevant agencies.

“There are 112 abandoned housing projects in peninsula,” he told the Dewan Negara today. 

He was responding to Senator Koh Nai Kwong, who asked what measures are taken or will be taken by the government to to tackle the issue of abandoned housing projects. 

Akmal said some abandoned projects were not moving because the developers have folded. 

“It not easy to deal with the abandoned projects. To revive it, they will have to start from scratch, such as looking for new contractors. 

“This is because the abandoned projects have been around for years. For example, about 105 out of the 112 projects have been abandoned since 2015.”

Akmal also said as of April there are 481 sick projects. 

“We have managed to revive 118 projects until they received their CCC (Certification of Completion and Compliance).”

He also said there are licensed projects that could be traced, and some unlicensed abandoned projects. 

Akmal said apart from managing abandoned housing projects, they are trying to reduce the number of “sick” housing projects from becoming abandoned. 

“We will get 1Malaysia Housing Programme and Syarikat Perumahan Negara Bhd to become more proactive in solving the sick housing projects effectively.

“As for the ministry we are open to any suggestions to tackle this problem.” – June 26, 2023.