Revive 'sick' projects: Proposal to use guarantee fund submitted to MOF

 

The proposal to use the special guarantee fund announced in the recent Budget 2024 to restore sick or abandoned projects will be submitted to the Finance Ministry (MOF).

Deputy Local Government Development Minister Akmal Nasrullah Mohd Nasir said that among the points in the proposal was to use the fund for affordable housing projects under RM300,000 and for projects with at least 80 percent progress status.

“Apart from that, we are also looking at housing programmes under federal government agencies and state authorities, especially affordable housing projects which are at risk of becoming ‘sick’ projects,” he said, during a question and answer session in the Dewan Rakyat today.

He said this in his reply to a supplementary question from Zahir Hassan (PH-Wangsa Maju) regarding the method implemented by the government to resolve the issue of housing projects classified as sick or abandoned projects.

Sick projects frozen

Replying to Zahir's original question regarding the Housing Development Account (HDA) for housing projects, Akmal said that thus far, the Local Government Development Ministry (KPKT) has frozen 20 HDA accounts for projects categorised as sick or problematic.

He said the move was based on an investigation that showed the developers were neglecting their responsibilities and could affect the interests of buyers.

“In addition, developers can also be compounded up to a maximum of RM50,000 if they fail to fulfil their obligations as stipulated under Act 118 (Housing Development (Control and Licensing) Act 1966) and its regulations.

“A total of 284 compounds have been issued for offences under section 7 (e) of Act 118 in 2022 and 2023,” he noted.

He added that through the National Housing Department (JPN), KPKT always ensures that licensed housing developers comply with HDA-related provisions, including conducting HDA management audits of licensed housing developers; monitoring housing developers’ financial progress reports and blocking applications for withdrawals from HDA if they do not comply with Act 118 and its regulations.

- Bernama