Protecting home buyers: Nga (third from right) said that maintaining developer accountability is pivotal for the real estate sector.
PETALING JAYA: Those involved in abandoned housing projects may be stopped from leaving the country under a proposed amendment to the law, says Nga Kor Ming.
The Housing and Local Government Minister said the move is being proposed as the government considers amending the Housing Act to provide for the prosecution of developers who deceive home buyers.
“Travel bans could be imposed on developers behind abandoned projects.
“Purchasing a home is a huge financial commitment for many, which is why maintaining developer accountability is pivotal for the real estate sector,” Nga said following discussions with the Malaysia Housebuyers Association.
He added that with the revision of the Housing Development (Control and Licensing) Act 1966, the practices of unscrupulous developers could result in legal action.
Under Section 18A of the Act, it is an offence for a housing developer to refuse to continue, or to suspend or stop, a project for six months or more. The offence carries a fine of between RM250,000 and RM500,000 or jail of up to three years or both.
“Within the industry there are world-class developers but it is tarnished by the acts of some bad elements.
“As the authority overseeing the sector, the ministry must be firm in safeguarding the rights of home buyers and upholding the sector’s integrity,” Nga said.
He also revealed that the ministry’s task force has successfully intervened in 351 sick projects in the past year, helping over 43,000 buyers in properties valued at about RM33bil.
When contacted, the National House Buyers Association vice-president Tan Chong Leng said the association has received a surge in complaints from home buyers, especially during the Covid-19 period, due to projects not commencing as scheduled.
“This has led to a situation where buyers continue to service their housing loans without receiving their completed homes.
“The government had at that time permitted developers to delay the handing over of houses but the buyers did not get protection. It’s unfair to the buyers,” he said.
