What changes are proposed for Act 118 to tackle problematic housing projects?

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Proposed Amendments to Act 118 Aim to Broaden Enforcement Against Problematic Housing Projects

The Housing and Local Government Ministry (KPKT) is proposing amendments to the Housing Development (Control and Licensing) Act 1966 (Act 118) to expand enforcement powers and address problematic commercial housing projects more effectively. These changes are designed to strengthen preventive measures and long-term actions, thereby minimising the risk of private housing projects becoming sick or abandoned. The amendments are anticipated to be tabled in Parliament next year.
Expansion of Blacklisting Scope

The proposed amendments will allow for the blacklisting of not only parent housing developer companies but also the actual beneficiary owners behind these entities. This broader scope aims to ensure that individuals who control or benefit from problematic developments are held accountable. Previously, enforcement primarily targeted the companies directly involved in the failed projects.
Consequences for Blacklisted Individuals and Companies

If a housing project is confirmed as 'sick', KPKT intends to proactively blacklist the housing developer and the board members of the involved companies. Furthermore, companies associated with the same directors will be prohibited from applying for new development licences. In parallel, their existing Housing Development Accounts are slated for freezing, preventing further financial transactions related to new ventures.
Strengthening Preventive and Long-Term Actions

The overarching goal of these proposed amendments is to enhance both preventive strategies and long-term solutions for dealing with housing development issues. By extending enforcement to parent companies and beneficiary owners, the ministry seeks to deter misconduct and reduce the likelihood of projects failing. This initiative is part of a broader effort to safeguard homebuyers and ensure greater accountability within the housing development sector.

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What changes are proposed for Act 118 to tackle problematic housing projects?

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