KPKT Reviews Act 118 For Stricter Enforcement Against Blacklisted Developers

KUALA LUMPUR, Oct 27 (Bernama) -- The Ministry of Housing and Local Government (KPKT) is reviewing the Housing Development (Control and Licensing) Act 1966 (Act 118) for stricter enforcement powers, including travel bans against blacklisted developers or company directors. 

Deputy Minister of Housing and Local Government, Datuk Aiman Athirah Sabu, said the move is crucial to address abandoned housing projects more effectively and to protect the interests of homebuyers nationwide.

She reported that as of Sept 30, 2021, 107 private housing projects have been classified as abandoned under Act 118, involving 29,587 units and 15,553 buyers.

“Once a project is confirmed as abandoned, the ministry will take proactive measures by blacklisting the housing developers and the board members of the companies involved.

“Once blacklisted, they will also be barred from applying for new housing licences, and their existing Housing Development Account (HDA) will be frozen,” she said during a question-and-answer session in the Dewan Rakyat today.

She was responding to a question from Dr. Ahmad Fakhruddin Fakhrurazi (PN-Kuala Kedah) regarding the Act's effectiveness in dealing with negligent developers who abandoned projects.

Aiman Athirah highlighted that between December 2022 and September 2025, the government had successfully revived approximately 60 abandoned housing projects nationwide through various KPKT initiatives involving stakeholders. 

She added that this included coordinating meetings between the original developers, rescue developers, liquidators and banks, to resolve the situation for buyers.

“A successful rescue will result in buyers being refunded their money. The ministry also intervenes by issuing resolution letters to banks, recommending that they reduce or waive interest rates and restructure the buyers' loans.

“Affected individuals can also get help to make a second withdrawal from their EPF accounts. They may qualify for new loans, including a first-time loan or a four percent interest-free loan for up to five years, pending approval from the Public Sector Housing Financing Board,” she explained. 

In response to a supplementary question from Ahmad Fakhruddin on the proposal to establish a guarantee scheme or special fund to protect homebuyers from losses in abandoned projects, she confirmed that it is also being considered as part of the ongoing review of Act 118.

-- BERNAMA