Housing Ministry mulling new law to address abandoned commercial properties
PETALING JAYA: The Housing and Local Government Ministry is considering introducing a new law to address abandoned commercial properties and to improve consumer rights protection, says its minister Nga Kor Ming.
Nga said mixed developments such as retail, commercial, small office/flexible office (Sofo) and Sovo (small office/versatile office) properties are not covered under the current Housing Development (Control and Licensing) Act 1966 (Act 118), which is limited to residential developments.
'Due to the absence of legal protection, buyers affected by abandoned projects under these categories often find themselves with no legal avenues for recourse.
'Following extensive engagements with industry professionals, NGOs and other stakeholders, the Ministry has decided to study a new act known as the Real Property Development Act (RPDA) to resolve this issue,' said Nga during his opening speech at the StarProperty Real Estate Developers Awards 2025 on Thursday (May 17).
Nga said the RPDA will expand the scope of Act 118 to include certain commercial developments which will safeguard the rights of property purchasers.
Nga said the RPDA aims to streamline the process for both buyers and developers by incorporating the Option to Purchase (OTP) framework, which will allow the termination of the Sale and Purchase agreement by the buyers if they are dissatisfied with the progress of the development.
Meanwhile, Nga said his ministry is mulling the Building Managers Act to address the chronic issue of poor property and building management.
Nga pointed out that presently, there are only 594 firms licensed to practice property management, serving 26,334 strata schemes or 2.91 million strata units in Malaysia.
On average, he said, each firm is responsible for managing 44 strata schemes or 4,898 strata units.
'This highlights a serious gap where there are insufficient licensed firms to effectively manage all existing strata schemes. As a result, many property owners and tenants face significant challenges due to declining property values caused by poor property management,' he said.
'With the Building Managers Act, along with the soon-to-be tabled Urban Renewal Act, we are committed to addressing the root problem of aged, dilapidated urban buildings and propelling Malaysia towards becoming a developed nation,' added Nga.
As of March this year, the Ministry, through the Taskforce on Sick and Abandoned Private Housing Projects, has successfully revived 1,044 private housing projects nationwide worth RM100.1bil in total, benefitting 124,539 homebuyers.
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