What types of costs are included in PR1MA project compensation?

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Compensation for Cancelled PR1MA Projects Encompasses Multiple Cost Categories

Compensation totalling RM172 million has been disbursed for cancelled Perbadanan PR1MA Malaysia (PR1MA) projects, covering a range of expenses incurred by developers. This financial settlement aims to address various cost components associated with the termination of these housing developments, with plans to fully resolve outstanding debts within 2023.
Pre-Development and Labour Expenses Covered

The disbursed compensation specifically includes payments for pre-development costs, which are expenses incurred before actual construction begins, such as planning and design. Additionally, labour costs are factored into the compensation package, acknowledging the financial commitments made to workers involved in these projects prior to their cancellation.
Interest on Delays and Other Associated Costs Included

Beyond initial development and labour expenses, the compensation also accounts for interest accrued due to project delays. This addresses the financial implications of extended timelines that were not attributable to the developers. Furthermore, the compensation framework includes provisions for other miscellaneous costs directly linked to the cancellation of these PR1MA projects.
Ongoing Negotiations for Remaining Projects

While compensation has been paid for 17 of the 32 cancelled PR1MA projects, negotiations are still underway for the remaining projects. The ministry has successfully reduced claims by approximately 30 per cent and is exploring alternative financing models to manage future debts, moving away from reliance on federal government allocations.

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What types of costs are included in PR1MA project compensation?

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