Number of ‘sick’ projects expected to increase: deputy minister

KUALA LUMPUR – The number of delayed, “sick” and abandoned private housing projects is expected to increase due to the effects of the Movement Control Order (MCO) which saw development projects halted to curb the spread of Covid-19.

Deputy Local Government Development Minister Akmal Nasrullah Mohd Nasir said the task force on sick and abandoned private housing projects has identified 110 projects that have been delayed, 435 sick projects and 112 abandoned projects as of March 31.

“The task force evaluates the number of projects on a monthly basis, because the status of a project changes dramatically.

“From a healthy state in one month, the project may fall sick or be delayed in the next month.

“We were given the picture in the last meeting that there could be a further increase, but I have not announced the statistics yet,” he told reporters when visiting two sick private development projects here today.

He said the main focus of the task force is to reduce the number of sick projects by going to the field and helping to find solutions to ensure developers fulfill their responsibilities to complete the projects.

“There are several aspects that we look into, including the developer’s ability to complete the project, the problems faced and the task force will try to facilitate the process,” he said.

He said the task force would also make a projection of the projects that would be problematic in the future and take into consideration various proposals for improvements, including amending Act 118 (Housing Development (Control and Licensing) Act 1966. 

Earlier, Akmal made a survey to review the latest status of Residensi Hektar Gombak and Mulberi Condominium, which are sick projects as the developer has been faced with technical as well financial constraints following the increase in the cost of building materials after the MCO.

As for Mulberi Condominium, which should have been completed in 2016, he said the developer has given his commitment to see through the project, with most of the physical developments already completed.

“There are only a few matters still outstanding involving several agencies and we are confident that the certificate of completion and compliance will be issued this year,” he added. – Bernama, May 29, 2023