Will blacklisting extend to parent company board members and owners?

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Blacklisting Measures May Extend to Parent Company Board Members and Owners

The Ministry of Housing and Local Government (KPKT) is considering amendments to the Housing Development (Control and Licensing) Act 1966 to broaden its enforcement powers. These proposed changes aim to include the blacklisting of board members from parent developer companies and the actual beneficiary owners behind problematic commercial projects. This initiative seeks to enhance preventative strategies and long-term actions to reduce the occurrence of sick or abandoned private housing developments.
Expansion of Enforcement Scope

The proposed amendments to Act 118 are intended to significantly expand the ministry's enforcement capabilities beyond just the direct developer companies. This would allow for a more comprehensive approach to addressing issues within the housing development sector. The focus is on ensuring that accountability extends to the highest levels of corporate structures, including parent companies and beneficial owners, thereby strengthening preventive measures.
Actions Against Errant Developers and Directors

If a housing project is officially classified as 'sick', KPKT plans to proactively blacklist the responsible housing developer and the board members of the involved companies. Furthermore, companies associated with the same directors will be prohibited from obtaining new development licenses. Existing Housing Development Accounts for these entities are also slated for freezing, illustrating a rigorous approach to deterring mismanagement and safeguarding homebuyers' interests.
Statistics on Problematic Projects

As of June 30, a substantial number of housing projects have been identified as delayed or problematic. Specifically, 233 projects were categorised as delayed, and 360 were identified as 'sick'. In a positive development, 1,127 abandoned projects have been successfully revived to date, which has benefited a significant number of homebuyers, totalling 135,000 individuals.
Public Access to Developer Information

To promote transparency and empower prospective homebuyers, KPKT has established the Teduh portal. This online system allows individuals to check the blacklist of developer companies before making purchasing decisions. This year alone, 109 developers have been blacklisted and are consequently barred from operating within the housing development sector, underscoring the ministry's commitment to protecting public rights and interests.

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Will blacklisting extend to parent company board members and owners?

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