By Sharen Kaur
KUALA LUMPUR: The Housing and Local Government Ministry (KPKT) has reaffirmed that blacklisting developers and company directors involved in abandoned housing projects remains a core government strategy to protect homebuyers and maintain confidence in the property sector.
Between December 2022 and September 2025, the government successfully resolved and revived 26 abandoned housing projects. As of Sept 30 this year, 107 abandoned projects remain, affecting 15,553 homebuyers and involving 29,587 housing units.
Deputy Minister Datuk Aiman Athirah Sabu said under the Housing Development (Control and Licensing) Act 1966, a project may be declared abandoned if it fails to meet the timeline in the Sale and Purchase Agreement (SPA) and shows no significant activity at the construction site for over six months.
Once a project is declared abandoned, the ministry will blacklist the developer and its board members. They will be prohibited from applying for new housing development licences, and their Housing Development Account (HDA) will be frozen, she said during the committee-stage winding-up of the Supply Bill 2026 in the Dewan Rakyat on Thursday.
She had previously stated that the government is considering imposing travel bans on developers and board members involved in abandoned projects, as part of broader reforms aimed at eradicating such projects—an initiative first proposed last year.
Meanwhile, Aiman Athirah said KPKT is conducting a comprehensive review of the Act to strengthen governance, improve project oversight, and ensure homebuyers' rights and interests are adequately protected.
At the same time, developers may offer incentives to attract buyers, but they remain fully bound by the law. Any misleading statements, false representations, or inaccurate claims are considered offences and may be compounded, she said.
She emphasised the importance of transparency and clear communication in all housing projects. All project specifications must be clearly outlined in the SPA to ensure buyers fully understand the features of the property they are purchasing.
In cases of non-compliance, buyers have the right to pursue legal action either in court or through the Homebuyers' Claims Tribunal, Aiman Athirah explained.
She also highlighted the defect liability period (DLP), which spans 24 months after handover. During this period, developers are responsible for rectifying any defects or work that fails to meet the specifications outlined in the SPA. Buyers may also raise disputes with the tribunal if developers fail to comply with their obligations under the agreement.
On broader housing initiatives, Aiman Athirah also outlined KPKT's plans to strengthen the rent-to-own (RTO) scheme under the People's Housing Programme (PPR) and Residensi Rakyat Programme (PRR), currently implemented in seven states.
The ministry is working with state governments, financial institutions, and industry stakeholders to explore alternative financing models and expand RTO access.On the 10:90 build-then-sell (BTS) model, Aiman Athirah said it allows buyers to pay 10 per cent upfront and the remaining 90 per cent upon project completion and issuance of the Certificate of Completion and Compliance (CCC).
KPKT is studying a risk-sharing framework involving banks, developers, and the government to ensure the BTS model can be implemented sustainably, especially for affordable housing, she added.
Source: https://www.nst.com.my/property/2025/11/1319556/kpkt-reinforces-blacklisting-measures-107-housing-projects-remain
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