SHAH ALAM: The Action Committee for Sick and Abandoned Private Housing Projects will hold an engagement session with banks this month to get them to be directly involved in an effort to rehabilitate the “sick” projects.
Deputy Local Government Development Minister Akmal Nasrullah Mohd Nasir said the engagement session would be held with the Association of Banks in Malaysia and the Association of Islamic Banking and Financial Institutions Malaysia.
“This engagement session will be held based on the findings by the action committee that not all sick projects cannot be rehabilitated as there are some which have been issued the Certificate of Completion and Compliance (CCC).
“Sick does not mean ( project) not viable. So the banks will be involved directly,“ he told a press conference at the Syarikat Perumahan Negara Berhad (SPNB) headquarters here today.
Akmal Nasrullah said through the Structuring of SPNB “Sick” Projects, the construction of three projects was discontinued.
“The three projects are the Makmur Karak Setia Housing Project, Bentong; Residency Lanar, Seremban and Taman Nusa Idaman, Kuala Ping, Terengganu (phase one and two),“ he said.
He said the three projects were cancelled due to various factors, including a lack of buyers, which means less than 50 houses were sold out of a total of 766 units, and not to burden buyers because the three projects would not be competitive if continued.
Akmal Nasrullah said the discussion between SPNB and the buyer involved went well with the buyer getting some compensation.
With the cancellation of the three projects, there are seven projects left and the target for completion of the projects concerned s in the first quarter of 2024, he said.
Regarding the achievement of the action committee, he said the percentage of sick and abandoned private housing projects that were successfully rehabilitated and issued the CCC for the period from January to June this year was 178 projects (20,926 housing units) with a gross development value (GDV) of RM16.75 billion.
The action committee has rehabilitated five abandoned projects (962 housing units) with a GDV value of RM441.84 million, out of a total of 183 projects (21,888 housing units) that were successfully rehabilitated, involving a GDV value of RM17.19 billion, said Akmal Nasrullah.
He said for the third and fourth quarters of 2023, the ministry will continue with the efforts and actions of the action committee by identifying preventive measures for sick and late projects by improving the monitoring system.
The Sick and Abandoned Private Housing Project Action Committee was established on Dec 30, 2022, with the aim of finding a more focused and strategic approach and making a positive impact in solving the issue of sick and abandoned projects in the country.-Bernama
