The Ministry of Housing and Native Authorities (KPKT) is taking severe steps to sort out one in every of Malaysia’s long-standing housing points — deserted non-public tasks. On November 20, the ministry shall be saying 5 new reforms geared toward utterly wiping out such tasks by 2030.
Housing Minister Nga Kor Ming stated the modifications are a part of a much bigger plan to tighten governance, enhance monetary administration, and provides homebuyers higher safety. One of many primary objectives is to shift the business from the same old “promote then construct” (STB) system to the “construct then promote” (BTS) mannequin, which provides extra safety for consumers.
Underneath the ten:90 BTS scheme, consumers solely pay 10% upfront, and the remainder — 90% — is paid after the undertaking is accomplished and licensed. Nga stated this technique tremendously reduces the danger of tasks being deserted or leaving consumers with unfinished houses. “The federal government helps the BTS mannequin as a result of it protects consumers and makes certain builders ship as promised,” he stated in Parliament.
Nonetheless, the federal government gained’t make the BTS mannequin necessary for now. Nga defined that not all builders have the monetary power or assets to tackle BTS tasks, and forcing it might damage smaller gamers out there.
To assist the shift, KPKT is updating the Housing Improvement (Management and Licensing) Act 1966 (Act 118). The amendments will deal with enhancing monetary administration, tightening developer rules, and strengthening homebuyer rights. Nga additionally reminded that builders want strong monetary backing to hold out BTS tasks easily.
On prime of that, builders at the moment are required to place down a 3% deposit of their undertaking’s gross growth worth (GDV) right into a housing growth account. For instance, a undertaking value RM1 billion would want a RM30 million deposit — a transfer to ensure there’s sufficient money stream to maintain building going.
Nga additionally shared some excellent news: the ministry’s taskforce on deserted tasks has managed to revive 1,600 developments to date, benefiting round 163,000 homebuyers nationwide. “That is a part of our effort to not solely repair deserted tasks but in addition forestall them from occurring once more,” he stated.
With these new reforms, KPKT hopes to create a stronger, extra clear housing business — one the place consumers can lastly really feel assured that the houses they’ve paid for will truly be accomplished.
