Voon (third right) and Heng (second left) exchanging documents after the signing ceremony with Chow (middle) and Sundarajoo (fourth right) as witnesses.
QUINTON and Sri Bayu flat owners can now look forward to finally moving into their long-awaited homes following a breakthrough agreement to revive two stalled Rumah MutiaraKu (RMKu) affordable housing projects in the Balik Pulau district of Penang.
Revival agreement signed
The Penang state government witnessed the signing of a revival agreement between Mah Sing Group Bhd and Baker Tilly Malaysia on Friday to complete both the projects which had been classified as “sick” after almost eight years of delay.
Chief Minister Chow Kon Yeow, who witnessed the signing ceremony in Komtar, said the move underscored the state government’s firm commitment to safeguarding the welfare of homebuyers, especially those from the B40 and M40 income groups.
“These projects are not merely about bricks and mortar. They are about restoring hope and ensuring that families who have waited patiently for years can finally have a place to call home,” he said in his speech.
From limbo to reality
The two RMKu projects involve 635 units in total and have attracted more than 500 buyers. Most of the units were offered to eligible purchasers, with sales and purchase agreements (SPAs) signed between October and November 2017. However, construction delays left buyers in limbo while continuing to service their housing loans.
State housing and environment committee chairman Datuk Seri S. Sundarajoo said inspections would be carried out once the recovery framework was finalised and construction work is expected to begin within the next two to three months.
“Our main aim is to complete these projects so that the owners finally have a place to call their own,” he said.
He added that the state government was targeting completion by the end of the year.
Eight years of waiting
Sundarajoo also noted that many buyers had been paying monthly loan instalments since 2018 despite not having possession of their homes.
“They have endured years of uncertainty with some paying rent on top of their bank instalments. This recovery effort is long overdue.
“The state government will ensure vacant possession is handed over strictly in accordance with the terms stipulated in the SPAs,” he told reporters after the signing ceremony.
Sundarajoo said the projects were already 70 to 80 per cent completed before being abandoned after the original developer faced financial difficulties.
Chow further said the Penang Housing Board (LPNPP), as the state’s main implementing agency, has been entrusted with delivering 220,000 units of affordable housing by 2030 under Strategic Initiative A1 as part of the Penang2030 vision.
At the same time, the state government is paying close attention to sick housing projects under the Housing and Local Government Ministry (KPKT), which are defined as developments delayed by more than 30 per cent or past their agreed completion date.
“In Penang, Pangsapuri Sri Bayu and Pangsapuri Quinton are the two RMKu projects categorised as sick projects. We fully understand the financial and emotional burden borne by buyers.
“The state government together with LPNPP and related agencies, had conducted site visits and a series of meetings to formulate a viable recovery plan.
“This will include offering a special financing package and appointing a financially strong developer to complete the remaining works,” he said.
Chow said the signing ceremony reflected the Penang government’s resolve to ensure that the Sri Bayu and Quinton RMKu projects are completed in the best interests of the buyers.
He added that close monitoring would continue throughout the recovery process to ensure all procedures are complied with and that buyers’ rights are fully protected.
“The state government is confident that with the strong cooperation of all parties involved, these projects will be successfully completed and bring long-term benefits to the people and the overall development of Penang,” he said.
Stepping up to the challenge
Following an evaluation process, Mah Sing Group Bhd was appointed as the financier while Baker Tilly Insolvency PLT was appointed by the court as liquidator to manage and oversee the orderly completion of both projects.
Mah Sing Group chief executive officer Datuk Voon Tin Yow said the Quinton and Sri Bayu projects marked the first time the group had undertaken such a recovery initiative under this arrangement.
“We see this as part of our corporate social responsibility. We are honoured to be able to step in and help the buyers who have been waiting for so long,” he said.
He added that Mah Sing will also work closely with all stakeholders to ensure the projects are completed on schedule.
Baker Tilly Malaysia group managing partner Andrew Heng said as owners of the projects, they will sell whatever leftover units upon completion.
Hope for the buyers
For buyers, the announcement brings renewed hope after years of frustration.
K. Harinath, 33, who works with Penang Hill Corporation, said he had been waiting anxiously since purchasing his Sri Bayu unit in 2018 for RM52,000 and was relieved that there was finally light at the end of the tunnel.
“I’ve had to rent an apartment in Air Itam for RM600 a month, on top of paying RM330 in loan instalments. I’m barely getting by.
“The news felt especially meaningful as Thaipusam falls on Feb 1,” he said when met by reporters after the ceremony.
