By Sharen Kaur - April 7, 2025
KUALA LUMPUR: The Housing and Local Government Ministry (KPKT) has blacklisted 109 property developers for failing to comply with regulatory requirements, reinforcing its commitment to protect the rights and investments of homebuyers.
Minister Nga Kor Ming said the National Housing Department issued 471 notices in 2024, resulting in total fines of RM9.03 million.
In the first two months of 2025 alone, 56 compounds were issued with fines amounting to RM1.25 million.
Most of the violations involved the failure to submit mandatory development status updates, audit reports, balance sheets, and profit and loss statements to authorities, Nga said.
Speaking at the 14th Annual Affordable Housing Projects Conference, Nga also revealed that directors of the blacklisted companies are barred from re-establishing themselves under new entities, ensuring accountability.
These developers will not be allowed to apply for new licences until their outstanding fines are fully settled, he said.
Nga added that for those with ongoing projects, these will be their final ones for now to ensure that homebuyers are not adversely affected.
He said that this enforcement action serves as a stern warning to all developers.
''The blacklisting sends a clear message that we will not tolerate illegal activities and non-compliance. We are taking strong actions to protect the hard-earned money of homebuyers and ensure they receive the homes they deserve.
"The welfare of homebuyers remains a top priority for the ministry. Developers must adhere to regulations to ensure timely and compliant project delivery," Nga said.
He reiterated that regulatory compliance is essential to ensure timely project completion and adherence to quality standards.
The list of blacklisted developers will be published on the ministry's website, allowing potential buyers to verify a developer's status before committing to a purchase.
Nga urged all homebuyers to check the official portal at https://teduh.kpkt.gov.my before making financial decisions.
"We are committed to upholding regulatory compliance to protect homebuyers' rights and ensure a fair and transparent housing market for all.
"Malaysian developers have a high reputation... We will reward those who perform well but will not tolerate unscrupulous practices," Nga concluded.
A key market expert said that blacklisting is a vital tool in Malaysia's efforts to safeguard homebuyers from dishonest or unreliable developers.
"This measure is designed to increase transparency in the housing market, hold industry participants accountable, and guarantee that projects are completed on time and to the promised standards," he told Business Times.
The expert advises potential homebuyers to conduct thorough research before purchasing new property in Malaysia. Checking a developer's status with KPKT is a crucial step to ensure dealing with a reputable company.
He noted that developers can be blacklisted for several reasons, including failing to submit mandatory development status reports and audited financial statements like balance sheets and profit and loss reports. Other grounds for blacklisting include project delays or abandonment, breaching licensing conditions, and mismanaging buyer funds.
"As the minister said, blacklisted developers face significant consequences. They are barred from applying for new housing development licences until all issues are resolved and fines are paid.
"The names of blacklisted developers are publicly available on KPKT's official portal, which can severely damage their reputation and that of their key officials.
"Company directors can also be blacklisted, preventing them from creating new companies to circumvent the ban"."
The expert said that while blacklisted developers can complete ongoing projects, they cannot start new ones until they achieve full compliance.
However, he questions whether homebuyers would trust these developers again, even after they resolve their issues, suggesting that the damage to their reputation may be irreparable.
Source: https://www.nst.com.my/property/2025/04/1198262/kpkt-blacklists-109-developers-regulatory-breaches-safeguard-homebuyers#google_vignette
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