KUALA LUMPUR, July 17 – It will be only right for the Ministry of Local Government Development to thoroughly investigate the issue of defects in more than half of the housing projects in Kelantan that was recently revealed, a statement issued by the political secretary to Minister of Local Government Department, Chiong Yoke Kong, said today.
This will ensure that those who violate regulations are held accountable, providing justice for homebuyers in the state, the statement said.
Deputy Minister Akmal Nasrullah Mohd Nasir recently disclosed data indicating that out of the 86 housing projects in Kelantan, 44 of them have various defects.
More than half of the housing projects in Kelantan have encountered problems eventually disregarding the rights of the state’s residents, and showing serious administrative loopholes within the state government and local authorities.
Although it is stipulated by the Jabatan Perumahan Negara (JPN) and the Housing Development (Control and Licensing) Act 1966 (HDA) that all housing projects and developers must obtain licenses from the Ministry of Local Government Development before commencing and publicly selling housing plans, some unscrupulous individuals and unethical developers exploit legal loopholes and the protection of local officials to bypass the oversight of the JPN and the HDA, the statement today said.
This prevents the Ministry of Housing Development from taking further action to safeguard homebuyers.
For instance, many developers manipulate the names of their property development projects, categorizing them as commercial developments to avoid the need for licenses under the HDA. This allows them to evade supervision from the housing authority, leaving the authority unable to assist when problems arise.
Buyers who purchase properties classified as commercial properties are unable to benefit from the protection provided by the HDA. If disputes arise with the developers, they can only rely on the terms of the agreements they have personally negotiated and signed. They must then seek their rights and protection through civil courts.
As commercial properties become increasingly common in the market and the lines between business, residential, and office spaces blur with the emergence of novel multi-functional properties such as SoVo, SoFo, and SoLo, it is essential to include them under the regulation of the HDA. This will provide comprehensive protection to property buyers and minimize the risks of significant losses and compromised rights.
Furthermore, there are some developers who do not meet the requirements and carry out property development projects without the necessary permits.
While there may not be many housing development projects in Kelantan, the fact that 44 out of 86 projects have encountered issues, surpassing a 50 percent failure rate, is a highly concerning problem. It highlights the incompetence of the state government in governing and the longstanding ineffective supervision, which fails to adequately safeguard the rights of the state’s residents.
Until comprehensive improvements are made to the HDA, both the state government and local authorities must assume an active supervisory role and cautiously regulate development projects in the area. This is necessary to ensure the basic rights of property buyers. Additionally, buyers and investors must conduct thorough research and minimize the risks of encountering abandoned projects.
–WE