PETALING JAYA, June 7 – The Housing and Local Government Ministry has been urged “not to make a mockery of the law against errant developers of abandoned housing projects”, theSun reported.
National House Buyers Association secretary-general Datuk Chang Kim Loong was commenting on Section 18A of the Housing Development (Control and Licensing) Act 1966 (Revised 2015).
Under the Act, “any licensed housing developer who abandons or causes to be abandoned a housing development or any phase of a housing development shall be guilty of an offence and shall on conviction be liable to a fine of not less than RM250,000 or to imprisonment for a term not exceeding three years or both”.
“Thus far, no developer of abandoned housing projects has been prosecuted despite the revised Act coming into force nine years ago.
“The question is, with so many abandoned housing projects in the country, why hasn’t any errant developer been punished or even prosecuted?”
Chang said enforcement is the key to the effectiveness of a law which was passed to protect property buyers. Yet, not a single prosecution has been reported in the media involving a developer of an abandoned housing project.
He said even the best legislation to counter any particular situation in the country would just remain an “ornamental piece” unless strict enforcement is carried out against offenders without fear or favour.
“This is the only way to instil respect for the law and the fear that it should command. As the guardian of the legislation, how does the ministry account for the growing number of problematic housing projects?”
Chang said while the ministry has the laws, it is the lack of enforcement that is the problem, and that one of the greatest injustices is to end up being a victim of an abandoned housing project.
“It is a traumatic experience to spend your savings to own a house, only to discover that the project is abandoned and you still have to service the bank loan.”
Chang said as of two years ago, a total of 198 abandoned housing projects were recorded in Peninsular Malaysia, some dating back to 1997, while new ones were declared abandoned only recently.
He said the statistics did not include those by the government or its agencies that have been similarly abandoned or categorised as “sick or delayed” projects that are nearly thrice the figures of abandoned ones.
In February 2023, theSun also reported that minister Nga Kor Ming announced that there are 429 “sick” housing projects, comprising 70,727 units involving 29,147 buyers nationwide as of Jan 31.
Sick housing projects are defined as those that have been delayed by more than 30% of their scheduled progress or whose sales and purchase agreements (SPA) have lapsed.
Chang said the havoc caused to victims of failed housing projects is a widespread national issue.
“Just look at the number of abandoned housing projects and the numerous buyers left in the lurch to fend for themselves.
“This is not only unfair but downright unacceptable and disgusting. Why should we expect the victims to suffer while the errant developers get away scot free?”
