logo
Second chance for stalled homes

Second chance for stalled homes

The Star18-07-2025
PETALING JAYA: The Housing and Local Government Ministry has implemented several recovery mechanisms to address abandoned housing projects, including direct mediation with buyers and developers, project completion strategies and the ­utilisation of public funds for selected developments.
The ministry said it facilitates negotiations between affected purchasers and developers or appointed liquidators on reimbursement terms.
Where viable, stalled projects may be completed by either the original developer, a 'white knight' or the liquidator, with the aim of obtaining Certificates of Fitness for Occu­pation or Certi­ficates of Comple­tion and Compliance.
It added that specific abandoned projects might be revived using government development allocations to ensure homebuyers receive habitable housing.
The ministry stated that it also conducts regular site visits, monitors rehabilitation progress and collaborates closely with state governments, local authorities and technical agencies to expedite resolutions.
According to the ministry, a total of 112 abandoned private housing projects have been recorded across Peninsular Malaysia as of May 31, 2025, with Selangor accounting for the highest number.
Selangor recorded 42 abandoned projects – representing 37.5% of the total – followed by Kelantan with 18 and Terengganu with 14.
The ministry said it remains committed to addressing the issue through a task force for sick and abandoned private housing projects, which has so far rehabilitated 21 projects involving 2,244 housing units.
'The government is fully committed to resolving sick and abandoned housing projects through a structured approach based on four pillars – tracking, resolution, prevention and forward planning,' the ministry said in response to a query from The Star.
However, Federation of Malaysian Consumers Associa­tions (Fomca) secretary-general Dr Saravanan Thambirajah said many of these projects – some idle for over a decade – had deteriorated, leaving thousands of homebuyers in the lurch while at the same time, posing serious safety and health hazards.
'These long-abandoned sites are painful symbols of systemic failure. They are not only physical hazards but also a source of emotional and financial devastation for families who invested their life savings or took out long-term loans for homes they will never live in.
'Many affected buyers are still repaying housing loans for properties they can neither occupy nor sell, with little legal recourse to recover their investments.
'Some of the projects were approved by local councils and licensed by authorities, yet when things collapse, the buyers are left to bear the consequences alone. There's often no legal remedy. First-time buyers and young families are especially vulnerable,' he said when contacted.
Fomca is calling for structural reforms, including the establishment of a dedicated federal task force to identify and manage chronically abandoned projects.
Developments, which have been idle for more than a decade, should be legally declared derelict and channelled through a fast-track process involving safety inspections, title audits, and eventual repurposing.
'Where feasible, such buildings should be converted into public assets, like social housing, youth centres or care homes. This will require legal amendments to enable compulsory acquisition, as well as partnerships between local councils, NGOs and housing trusts.'
He also proposed the creation of funding mechanisms, such as federal grants, housing rejuvenation bonds and social impact investments, to support repurposing efforts.
He urged authorities to empower residents' associations and civil society groups to report early signs of abandonment, supported by mobile platforms that allow GPS-tagged complaints and photos.
'Most importantly, enforcement agencies must respond swiftly and transparently. If we do nothing, property values will fall, urban decay will spread, and an entire generation of disillusioned Malaysians will be left paying for homes that were never built,' he said.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Maxim-um charge in JB
Maxim-um charge in JB

The Star

time2 hours ago

  • The Star

Maxim-um charge in JB

(from left): Gan Kuok Wei, managing director Tan Sri Gan Seong Liam and deputy managing director Jayden Gan Kuok ARIFFIN/ TheStar AFTER years of focusing on high-rise residential projects in the Klang Valley, Maxim Global Bhd is entering new territory with a RM1.7bil gross development value (GDV) project in Johor – and it's doing so in a big way. Dubbed 'The Address JB', the mixed-use project – the developer's largest to date – will sit on a 6.51-acre plot in Plentong, Johor Baru.

Explore the depths of ESG
Explore the depths of ESG

The Star

time3 days ago

  • The Star

Explore the depths of ESG

The upcoming Asia ESG Summit 2025 will feature regional-level conversations and industry insights. Pictured: Matrade's export promotion and market access division senior director Jai Shankar offering one such perspective at last year's local edition, held at KLCC. — YAP CHEE HONG/The Star The Asia ESG Summit 2025 is poised to spark conversation and change ASEAN's rapid growth presents an opportunity to lead on ESG issues that matter. Covering a broad spectrum of topics—from climate change and the circular economy to renewable energy financing and innovative cleantech—the Asia ESG Summit 2025 offers a platform to explore the ESG priorities shaping Asia's sustainable future. Taking place from Nov 5 to 7 in Kuala Lumpur, the three-day summit will enable attendees to dive deep into practical strategies, share regional best practices and engage in meaningful dialogue about integrating ESG principles into business and investment decisions and enhancing existing strategies. Attendees will have the opportunity to meet and network with policymakers, business leaders, investors and sustainability professionals from across the region and beyond. The event is structured around three thematic streams, each designed to address critical ESG areas: responsible investment and circular economy (Stream One), climate and value chain decarbonisation (Stream Two), and innovative cleantech and sustainable change (Stream Three). Stream One focuses on integrating ESG into investment strategies and sustainable finance, covering carbon pricing, renewable energy financing and circular economy models. Stream Two addresses net-zero goals by managing Scope 3 emissions, enhancing sustainability reporting, and tackling industry-specific decarbonisation challenges with practical case studies and data strategies. Stream Three explores cutting-edge climate technologies like carbon capture and sustainable agriculture, featuring product demos, startup showcases and investor networking to drive clean technology innovation. This tailored approach allows participants to customise their experience based on their interests and expertise, fostering rich discussions and collaboration. Gain exclusive insights, hear pioneering strategies and learn how key decision-makers are shaping Asia's sustainable future. Don't miss your chance to be part of this impactful ESG event. The Asia ESG Summit 2025 marks the inaugural summit of the Asia ESG Positive Impact Consortium (A-EPIC), whose members include Star Media Group (SMG), KG Media and the Inquirer Group of Companies. The summit is organised by SMG, with Sime Darby Property Bhd as the Urban Biodiversity Partner. Join a growing community committed to building inclusive, resilient and environmentally responsible economies. To learn more or purchase tickets, visit CLICK TO ENLARGE

MyCieds to seal customs leaks, boost integrity
MyCieds to seal customs leaks, boost integrity

The Star

time3 days ago

  • The Star

MyCieds to seal customs leaks, boost integrity

Towards improved transparency: Anis Rizana (centre) launching MyCieds for the southern region in Johor Baru. — THOMAS YONG/The Star JOHOR BARU: The paperless Malaysian Customs Import Export Document System (MyCieds) is expected to curb leakages and enhance transparency in Customs operations. Customs Department deputy director-general Norlela Ismail said the digital system would also help strengthen integrity among officers and agents. 'When applications are submitted physically, agents may prefer dealing with specific officers and vice versa. 'With MyCieds, the documents are submitted digitally so the process will be more transparent. Regardless of whether it is Company A, B, C or D, the officer handling the system must process the applications uniformly,' she said at the launch of MyCieds for the southern region yesterday. She said the system, already implemented at Kuala Lumpur International Airport, Selangor and Penang, had received positive feedback. Companies and agents in the southern region of Johor, Melaka and Negri Sembilan can now register to use it. MyCieds functions as an intermediary platform for delivering supporting documents between Customs officers and companies or delivery agents for each Borang Kastam declared through the Sistem Maklumat Kastam. Customs director-general Datuk Anis Rizana Mohd Zainuddin, who officiated the launch, said the system was rolled out in January this year. 'So far, more than 1,350 companies and delivery agents nationwide involved in imports and export activities have signed up for MyCieds. 'With the paperless system, we hope to speed up the documentation process and curb tax revenue leakages,' she said. Anis Rizana added that MyCieds aligns with the national agenda to improve cross-border trade governance and boost Malaysia's global competitiveness. 'This supports the Madani Economy framework by improving the efficiency of government service delivery to the people and industry players,' she said. Anis Rizana urged full compliance with the system at all levels, and called on Customs officers to support delivery agents with clear technical guidance, regular monitoring, and audits. 'Strict action must be taken against those who fail to comply with the regulations,' she said, also reminding agents to ensure documents uploaded are complete, valid and submitted on time. 'This system should be seen as a tool to improve operational efficiency, not a burden, as it expedites processes and reduces the risk of delays in Customs clearance.' Anis Rizana also called on stronger collaboration among all technical and enforcement agencies, including port and airport authorities as well as border enforcement bodies, to ensure the system's successful implementation.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store