KUALA LUMPUR (Feb 16): Buyers of "ailing" private housing projects can apply to their financiers for loan restructuring with supporting letters from the government, said Local Government Development Minister Nga Kor Ming.
Nga, in his written reply to Parliament, said his ministry will issue the letter through the Department of National Housing to affected buyers to help ease their financial burden.
He said that a total of 429 housing projects had been categorised as ailing projects as of Jan 31, 2023, involving 70,727 residential units with a total of 29,147 buyers.
The Teluk Intan Member of Parliament was responding to Kota Melaka MP Khoo Poay Tiong, who also enquired about measures by the ministry to overcome ailing housing projects.
A licensed private housing project is categorised as ailing when the sale and purchase agreement has lapsed, or when the project is delayed by more than 30% compared to its scheduled progress.
Nga said the ministry had displayed a list of such housing projects on the Department of National Housing portal.
“This list of projects can be used as a guide by potential homebuyers and financiers before approving a new housing loan and controlling progress payments to existing developers,” he said.
The ministry has also frozen the housing development account for selected ailing projects to avoid irresponsible withdrawals of money by developers, and blacklisted developers and directors of these companies from applying for a new advertising permit as long as the existing ailing project has not been completed with a Certificate of Completion and Compliance.
Nga said ailing projects with no progress on site for a long period of time are confirmed as abandoned projects in accordance with the Housing Development (Control And Licensing) Act 1966.
Among the preventive measures, he said the government would hold a smart partnership programme with state governments, state housing and real estate boards, local authorities, government agencies, technical agencies, and developers.
He said the ministry also plans a private housing forum with stakeholders and industry players, such as the Real Estate and Housing Developers' Association Malaysia and liquidators.
“The ministry encourages the use of new technologies in construction, such as the industrialised building system and alternative building materials, to speed up the completion of housing projects at a cheaper cost without affecting the quality of construction,” Nga said.
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