Tiang issues strong warning to housing developers over abandoned projects
Tiang (eighth right) is seen with representatives from relevant agencies during the inspection of the abandoned housing project at Jalan Sibiyu, Bintulu. – Photo by Abang Ismail Abang Su'ud.
BINTULU (May 18): Housing developers who fail to fulfil their responsibilities will face stringent and indefinite actions, including fines, blacklisting, and forfeiture of deposits, warned Deputy Minister of Public Health, Housing, and Local Government Datuk Michael Tiang.
During his visit to the abandoned housing project at Lot 6256 and Lot 6258, Block 32 Kemena Land District, and Lot 1713 at Jalan Sibiyu yesterday, Tiang expressed deep concern over the prolonged delay of the project.
'This project was paralysed due to land encroachment issues, which are now under legal proceedings. However, that does not excuse the developer from abandoning their duties,' said Tiang.
He noted that most units had already been sold, leaving many buyers burdened with housing loans for homes that are incomplete and without basic utilities.
'Out of 65 units, about 10 occupants have moved into their respective lots, despite having no electricity or clean water supply. Some are still relying on water from construction sources, which is not advisable,' he told reporters after the visit, accompanied by representatives from Sarawak Water Sdn Bhd, Sarawak Energy Berhad (SEB) and Bintulu Development Authority (BDA).
Tiang said his ministry, along with BDA, will issue letters of support to Sarawak Water Sdn Bhd for the provision of temporary water supply to residents who had opted to move in.
'We understand why they moved in. They've paid, the houses are physically complete, and they need shelter. But without the Occupation Permit (OP), it's still an issue. We are working on the legal steps needed to address this,' he said.
Regarding electricity, Tiang acknowledged the complexity of the issue, adding that discussions with SEB were ongoing to find a viable solution for affected buyers.
Tiang emphasised that developers who abandon projects and fail to respond to directives from the ministry would face strict enforcement under the Housing Development (Control and Licensing) Ordinance.
'We will direct them to resume work. If they fail to comply, we will blacklist the company, forfeit their deposits, and take action against the individual in charge. They too can be blacklisted,' he stated firmly.
Tiang added that the ministry was also in the process of officially declaring several other housing projects throughout Sarawak as 'abandoned', a move that would help buyers negotiate more favourable terms with banks to ease their financial commitments.
He said the ministry's task force on sick projects continues conducting site visits across Sarawak to identify stalled developments and ensure timely interventions.
'Our message to all housing developers is clear: fulfil your obligations or face the consequences. We take the plight of homebuyers seriously and will not hesitate to act,' Tiang said.
Tiang and his team also visited another housing development site, which consists of phase one of a low-cost housing development project.
He said the present delay in its completion was due to theft of electrical wiring in the houses, which they are trying to rectify. The developer has promised to proceed with the OP application with BDA once the issue is resolved.
'We expect the outcome within two to three months, they will cross the finish line,' he said. abandoned housing project lead Michael Tiang
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