RM125m secured to revive affordable housing project

The Sun

4 days ago

GOMBAK: The Housing and Local Government Ministry has secured a RM125 million funding injection to revive the long-delayed Residensi Hektar Gombak project, a major breakthrough for the 2,400 homeowners who have waited years for their affordable homes.
Launched in 2018 under the Residensi Wilayah programme, the project was developed by Hektar Aneka Sdn Bhd but ground to a halt, missing its promised completion date of May 2022 as stated in the Sale and Purchase Agreement.
Minister Nga Kor Ming said: 'This delay has deeply affected 2,400 buyers, many of whom are still paying loans for incomplete homes while also covering rent elsewhere. We understand the pressure they are under and that is why this recovery effort is critical.'
To ease the financial burden on affected buyers, the ministry has actively engaged with financial institutions to negotiate lower repayment terms and restructure existing loans.
Through the National Housing Department and the Task Force for Sick and Abandoned Projects, the ministry has taken a hands-on approach to rehabilitate the stalled development.
After months of technical and financial negotiations, the funding marks a turning point.
'With this capital injection, construction would begin immediately under a new main contractor, Bina Permai Sdn Bhd,' said Nga.
'This is a vital milestone for a project that has been stalled for far too long. It brings renewed hope to the thousands of buyers who have waited with great uncertainty.'
He stressed that this is the project's last shot at redemption.
'This is the final chance. If the project fails again, we will blacklist the developer and all parties involved.
'I will use my full ministerial powers, including action against its board of directors. There will be no second chance.
'The funds are here, the KPI is set, keys must be handed over by 2027. Enough is enough,' he warned.
He urged affected buyers to remain patient just a little longer, assuring them that the government is doing everything possible to ensure completion.
For buyers such as private sector employee Suriyanni Rahman, 34, the announcement was long overdue.
'I was one of the first to buy a unit back in 2018. My child was five years old then, now my child is in Standard Five.
'We never received any formal notification when construction stopped. We found out through our buyer representative, who kept pushing the ministry for updates.'
Suriyanni, who rents in Setapak while still paying her mortgage, said: 'It has been very hard. We have been paying for two homes, one we live in and another that still is not ready. The unit cost RM260,000 and we have been paying since day one. That is why I am truly grateful to the ministry and the Madani government.
'This is amazing news for us, especially as first-time homeowners who have waited over five years.'
Civil servant Iskandar Zulkarnain, 34, echoed similar sentiments.
'Most of us civil servants buy homes for retirement. Once we leave government quarters, we are on our own. But how do we manage when the house still is not ready?
'I bought mine in 2018. It was supposed to be done by 2022. We have been pushing for answers ever since. Even with this new announcement, many of us had doubts. We kept checking social media to see if it was really true. Now, there is real hope,' he said.
Under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, the Madani government, through the ministry, has made it a priority to revive stalled and problematic housing projects, especially those affecting the low and middle-income groups.
Among its key milestones was the restoration of Taman PRR Putera Kiansom in Sabah, which had been delayed for 22 years. Another major breakthrough was the launch of PRR Harmoni Madani in Bestari Jaya, Selangor, resolving a 27-year housing struggle for 247 estate workers.
Since the formation of its task force in December 2022, the ministry has managed to revive 1,127 abandoned housing projects, covering 135,211 units valued at RM106.48 billion as of May.