PETALING JAYA: The Housing and Local Government Ministry has implemented several recovery mechanisms to address abandoned housing projects, including direct mediation with buyers and developers, project completion strategies and the utilisation of public funds for selected developments.
The ministry said it facilitates negotiations between affected purchasers and developers or appointed liquidators on reimbursement terms.
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Where viable, stalled projects may be completed by either the original developer, a “white knight” or the liquidator, with the aim of obtaining Certificates of Fitness for Occupation or Certificates of Completion and Compliance.
It added that specific abandoned projects might be revived using government development allocations to ensure homebuyers receive habitable housing.
The ministry stated that it also conducts regular site visits, monitors rehabilitation progress and collaborates closely with state governments, local authorities and technical agencies to expedite resolutions.
According to the ministry, a total of 112 abandoned private housing projects have been recorded across Peninsular Malaysia as of May 31, 2025, with Selangor accounting for the highest number.
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Selangor recorded 42 abandoned projects – representing 37.5% of the total – followed by Kelantan with 18 and Terengganu with 14.
The ministry said it remains committed to addressing the issue through a task force for sick and abandoned private housing projects, which has so far rehabilitated 21 projects involving 2,244 housing units.
“The government is fully committed to resolving sick and abandoned housing projects through a structured approach based on four pillars – tracking, resolution, prevention and forward planning,” the ministry said in response to a query from The Star.
However, Federation of Malaysian Consumers Associations (Fomca) secretary-general Dr Saravanan Thambirajah said many of these projects – some idle for over a decade – had deteriorated, leaving thousands of homebuyers in the lurch while at the same time, posing serious safety and health hazards.
“These long-abandoned sites are painful symbols of systemic failure. They are not only physical hazards but also a source of emotional and financial devastation for families who invested their life savings or took out long-term loans for homes they will never live in.
“Many affected buyers are still repaying housing loans for properties they can neither occupy nor sell, with little legal recourse to recover their investments.
“Some of the projects were approved by local councils and licensed by authorities, yet when things collapse, the buyers are left to bear the consequences alone. There’s often no legal remedy. First-time buyers and young families are especially vulnerable,” he said when contacted.
Fomca is calling for structural reforms, including the establishment of a dedicated federal task force to identify and manage chronically abandoned projects.
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Developments, which have been idle for more than a decade, should be legally declared derelict and channelled through a fast-track process involving safety inspections, title audits, and eventual repurposing.
“Where feasible, such buildings should be converted into public assets, like social housing, youth centres or care homes. This will require legal amendments to enable compulsory acquisition, as well as partnerships between local councils, NGOs and housing trusts.”
He also proposed the creation of funding mechanisms, such as federal grants, housing rejuvenation bonds and social impact investments, to support repurposing efforts.
He urged authorities to empower residents’ associations and civil society groups to report early signs of abandonment, supported by mobile platforms that allow GPS-tagged complaints and photos.
“Most importantly, enforcement agencies must respond swiftly and transparently. If we do nothing, property values will fall, urban decay will spread, and an entire generation of disillusioned Malaysians will be left paying for homes that were never built,” he said.
