GENERAL

GOVT RESOLVES 663 SICK PRIVATE HOUSING PROJECTS WORTH RM57 BILLION, SAYS NGA

25/06/2024 04:24 PM

KUALA LUMPUR, June 25 (Bernama) -- The Task Force on Sick and Abandoned Private Housing Projects (TFST), established by the Ministry of Housing and Local Government (KPKT), has successfully resolved 663 housing projects, benefiting 78,554 buyers with a gross development value (GDV) of RM57.09 billion in less than two years.

Housing and Local Government Minister Nga Kor Ming said that in 2023, the TFST completed 452 sick and abandoned private housing projects, involving 53,697 units with a GDV of RM39.814 billion.

“Meanwhile, as of May 31 this year, a total of 211 sick and abandoned private projects have been revived, involving 24,857 units with a GDV of RM17.28 billion,” he said during an oral question and answer session at the Dewan Rakyat today.

He said this in response to a question from Manndzri Nasib (BN-Tenggara), who inquired about the forms of assistance the ministry provides to home buyers facing issues with ‘sick projects’, especially those purchasing housing projects under the people's housing initiative, such as RumaWip, which primarily targets the B40 group.

Additionally, Nga said that the KPKT conducts regular monitoring and field visits to project sites, and engages with technical agencies and local authorities (PBT) to identify preventive measures or more focused solutions with developers.

He said this included submitting a list of buyers affected by government housing projects, such as Residensi Wilayah, PR1MA, the Civil Servant Housing Programme (PPAM), and Syarikat Perumahan Negara Berhad (SPNB), to the Public Sector Home Financing Board (LPPSA) to consider restructuring loan payments.

“KPKT is always seeking the best and most effective alternatives for the recovery of sick and abandoned private housing projects,” Nga said.

According to him, KPKT is also in the process of amending the Housing Development (Control and Licensing) Act 1966 (Act 118) to prosecute developers involved in fraud or abandoned projects, even prohibiting them from leaving the country.

Responding to Manndzri's supplementary question on whether the ministry is prepared to address the potential delays in housing project completions due to diesel price increases, Nga said that the targeted diesel subsidies should not affect housing prices.

“All parties are aware that the commercial sector (construction) does not receive subsidies... there were none before and there are none now... so, I don't think there will be any direct impact on house prices. However, KPKT will continuously monitor and ensure that there is no unnecessary profiteering in this regard,” he said.

In response to a supplementary question from Roslan Hashim (PN-Kulim Bandar Bahru) regarding delayed PR1MA housing projects, Nga said that there are currently 24 housing projects classified as 'sick'. He stressed that KPKT has already implemented several measures.

“For all new PR1MA projects, KPKT is obligated to conduct a feasibility study. If a project is found not to be viable, unfortunately, it cannot proceed. Contractors with a poor track record or those attempting to exploit the situation will have their contracts terminated,” he said.

“Based on the proactive measures currently in place, I am confident that all 24 PR1MA projects will be completed by the end of this year,” he added.

-- BERNAMA


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