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- Deputy Housing and Local Government Minister Datuk Aiman Athirah Sabu said the move aims to strengthen the ministry’s ability to act against irresponsible developers while ensuring the protection and welfare of homebuyers affected by abandoned projects.
KUALA LUMPUR (Oct 27): The Ministry of Housing and Local Government is reviewing the Housing Development (Control and Licensing) Act 1966 to impose stricter actions on blacklisted developers for abandoned housing projects, including possible travel bans for their directors.
Deputy Housing and Local Government Minister Datuk Aiman Athirah Sabu (pictured) said the move aims to strengthen the ministry’s ability to act against irresponsible developers while ensuring the protection and welfare of homebuyers affected by abandoned projects.
Under Section 11(1)(ca) of the Housing Development Act, the minister can declare a project abandoned if it isn’t finished within the agreed timeline and no major construction has occurred for six months.
“Once a project is declared abandoned, the ministry will blacklist the developer and its board members. Those blacklisted are barred from applying for new development licences, and their Housing Development Accounts (HDA) are frozen,” Aiman told the Dewan Rakyat during the oral question-and-answer session on Monday.
She was responding to Ahmad Fakhruddin Fakhrurazi (PN–Kuala Kedah), who had asked about the effectiveness of the Housing Development Act in addressing rogue developers behind abandoned projects.
As of Sept 30, 2025, a total of 107 private housing projects involving 29,587 housing units and 15,553 buyers have been classified as abandoned under the Housing Development Act, Aiman said.
Of these, Selangor recorded the highest number of abandoned projects at 41, followed by Kelantan with 16 and Terengganu with 13.
To ease the burden on affected buyers, Aiman said the ministry has been facilitating discussions between developers, rescue developers, liquidators and financial institutions to help recover payments made by buyers.
The ministry also provides confirmation letters for abandoned projects, allowing buyers to restructure loans, get interest waivers or cancellations from financing banks, apply for a second withdrawal from the Employees Provident Fund, or apply for new housing loans under the Public Sector Home Financing Board.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
