Local Government and Housing Minister, Datuk Seri Dr Joachim Gunsalam.
KOTA KINABALU: Homebuyers in Sabah can now feel more secure about their investments, following amendments to the state’s housing development law aimed at improving protection and transparency in the industry.
The Housing Development (Control and Licensing) (Amendment) Enactment 2023 (Amendment) 2025, tabled and passed in the state assembly on Thursday (April 17), introduces several key changes to ensure housing projects are completed as promised and that developers are held accountable.
State Local Government and Housing Minister Datuk Seri Dr Joachim Gunsalam, who tabled the bill, said the amendments will allow housing development in Sabah to be governed in a more orderly, transparent and effective manner, thereby protecting the interests of homebuyers while strengthening the legal framework and governance of the sector as a whole.
“One key update gives the state Housing Controller the authority to use a developer’s deposit to resolve issues when the developer fails to meet obligations under the sale and purchase agreement, such as failing to complete or hand over a house.
“This means buyers will not be left helpless if a project is abandoned or poorly managed.”
Another notable amendment involves reducing the maximum jail term for licensed developers who abandon housing projects from five years to three.
While this may appear to be a lighter sentence, Dr Gunsalam said the change ensures the punishment is consistent with the Housing Development (Control and Licensing) Act 1966 at the federal level.
“This new Section 20A introduces a penalty in line with the federal legislation to ensure licensed housing developers do not act negligently or irresponsibly in completing housing projects within the agreed timeframe.
“This approach also upholds the principle of consistency and fairness in law enforcement, similar offences should not be punished drastically differently across jurisdictions,” said Dr Gunsalam, who is also the Deputy Chief Minister II.
The amended law also empowers the Minister to exempt certain government-linked bodies or agencies from its provisions, provided they are under the Ministry’s control or under statutory control of the Government of Sabah or the Federal Government.
Such exemptions may be granted with specific limits, restrictions, or conditions.
Dr Gunsalam added that these changes were developed after extensive consultations with various stakeholders, including the Sabah Housing and Real Estate Developers Association (SHAREDA), Sabah Law Society (SLS), and other professional bodies such as architects, engineers, and surveyors.
He added that the Bill had undergone a comprehensive process involving close collaboration between the Ministry, government agencies and the housing industry before being finalised and brought forward for the drafting and legislative process.
