KUALA Lumpur City Hall (DBKL) has identified 38 abandoned development projects across the capital involving large-scale developments, including buildings exceeding 10 storeys high.
Kuala Lumpur mayor Datuk Seri Fadlun Mak Ujud said the projects had obtained development orders, but were left incomplete and categorised as “abandoned”.
Despite work being halted, Fadlun said developers, contractors and project consultants remained fully responsible for the upkeep and safety of the sites.
He told StarMetro in a statement in response to queries on abandoned and neglected construction sites in Kuala Lumpur.
Fadlun said DBKL has been carrying out continuous inspections at inactive construction sites to ensure compliance with stipulated requirements.
He said follow-up action, including warning notices and compounds, would be issued if safety risks or non-compliance were detected.
“A total of 116 warning notices and compounds have been issued to developers failing to comply with the required conditions,” said the mayor.
DBKL, he added, would continue strengthening monitoring and enforcement efforts to ensure all construction sites − including inactive projects − remained safe, clean and not jeopardise the well-being of city residents.
The National House Buyers Association (HBA) said the impact of abandoned projects extended beyond financial losses suffered by purchasers and that it affected public safety, health and the environment.
Its honorary secretary-general Datuk Chang Kim Loong said neglected construction sites could become mosquito-breeding grounds and attract illegal dumping and criminal activities, while the deteriorating structures posed hazards to nearby communities.
He said abandoned developments also represented a waste of land, building materials and public infrastructure, highlighting the need for stronger safeguards to prevent projects from being left incomplete.
“Pre-emptive measures must be adopted and safety nets must be put in place to avoid abandonment of housing projects in the future,” he added.
Among HBA’s long-standing recommendations is the build-then-sell (BTS) 10:90 model to replace the current sell-then-build system.
Under the BTS 10:90 framework, developers would have to finance and complete a project before receiving the bulk of payments from buyers, who would pay only a 10% booking fee upfront.
“This ensures developers are financially committed from the outset.
“If a project is abandoned, the developer bears the loss and the bridging financier can step in to complete the project without involving public funds.
“The BTS 10:90 model also encourages proper due diligence and sound financial management, as profits are only realised upon successful completion,” he said.
Chang said the proposed “Option to Purchase” (OTP) mechanism under the Real Property Development Bill could offer an additional layer of protection for both house buyers and developers.
He said the mechanism would give buyers and developers greater flexibility to walk away from a deal before signing the sale and purchase agreement.
The framework, he added, could reduce speculative launches and encourage better project planning.
However, Chang stressed that OTP alone would not solve the problem of abandoned developments.
“OTP addresses demand risk at the early stage, but it does not directly tackle the root causes of abandoned projects in the same way the BTS 10:90 model does.
“The OTP mechanism helps developers assess market interest, whereas BTS addresses construction and financing risks, which are behind many abandoned projects,” he pointed out.
