Latest news with #Act118
Focus Malaysia
01-08-2025
- Business
- Focus Malaysia
MP13: Govt to curb abandoned housing projects with build-then-sell model
UNDER the 13th Malaysia Plan, the government plans to mandate the 'build-then-sell' model via amendments to Act 118 to curb abandoned housing projects, improve accountability and regulatory oversight. 'While this may pressure developers' balance sheets, financially stronger players are poised to benefit. The plan also highlights strategic industrial zones like JSSEZ, Kulim Hi-Tech Park and Carey Island, which are well-positioned due to infrastructure and location, in our view,' said Maybank Investment Bank. In our view, the BTS approach will help to reduce the risk of abandoned projects, encourages careful planning and better product quality to attract buyers. It may also address the oversupply issue by discouraging reckless launches and promoting more responsible, demand-driven development. However, the BTS model could weigh on developers' balance sheets, as financing must be secured before construction begins. The existing and new industrial parks/zones are poised to reshape the industrial investment landscape, intensifying competition as investors gain more choices and states offer varied incentives. We see JSSEZ, KHTP and Carey Island as the most competitive due to their strategic location to Singapore (JSSEZ) and Penang (KHTP), as well as strong infrastructure (Port of Tanjung Pelepas, upcoming JB-Spore Rapid Transit System [RTS] and Carey Island Port). Risk to our calls are such as the weaker-than-expected property sales dragged by weaker economic outlook, policy risks, stricter lending measures by the banks, higher-than-expected Liquidated Ascertained Damages compensation following latest ruling by the Federal Court, and rising building material costs and labour issues. —Aug 1, 2025 Main image: Tekkashop
The Star
17-05-2025
- Business
- The Star
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.
