What criteria must developers meet to get state aid for sick projects?

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Developers Must Demonstrate Genuine Intent to Secure State Aid for Sick Housing Projects

The Johor government is prepared to offer assistance in completing housing projects that have become 'sick' or abandoned, provided that developers exhibit genuine intent and proactively engage with the state authorities. This support is contingent on developers demonstrating a commitment to finalising these projects. Without such clear intention from the developers, the state government's capacity to intervene and facilitate completion is significantly limited.
State Government's Conditional Willingness to Assist

State Housing and Local Government Committee chairman Datuk Mohd Jafni Md Shukor stated that the Johor government is willing to help resolve sick housing projects. This assistance is explicitly tied to developers showing "genuine intent" and reaching out to the government. However, he stressed that if developers lack the will to complete these projects, the state's ability to act is minimal. This conditional approach underscores the government's position as a facilitator rather than a direct executor of these developments.
Limited Formal Role in Project Agreements

The agreements governing these housing projects are fundamentally contractual arrangements between developers, contractors, buyers, and financial institutions such as banks. The state government, in its formal capacity, does not hold a designated role within these primary agreements. Despite this lack of direct contractual involvement, the government has expressed readiness to offer support when formally requested by the involved parties.
Focus on Project Completion and Future Delivery

In the current year, the Johor government has successfully overseen the completion of seven sick housing projects, valued at approximately RM700 million, which impacted around 3,000 homeowners. Looking ahead, the state is actively working to complete three additional sick housing projects, with a target for their finalisation by next year. Furthermore, the Johor government has set a broader objective to deliver 30,000 units under the Johor Affordable Housing (RMMJ) scheme by 2026, having already handed over 13,000 units to date.

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What criteria must developers meet to get state aid for sick projects?

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