Housing Development Act to be amended to cover sick commercial projects

• The legislation, also known as Act 118, currently does not cover commercial projects such as shop lots and offices, while only regulating residential projects by requiring developers to obtain licences with strict conditions, said Housing and Local Government Minister Nga Kor Ming.

KUALA LUMPUR (Aug 18): The government is in the midst of drafting amendments to the Housing Development (Control and Licensing) Act 1966 to expand its scope to cover problematic commercial projects.

The legislation, also known as Act 118, currently does not cover commercial projects such as shop lots and offices, while only regulating residential projects by requiring developers to obtain licences with strict conditions, said Housing and Local Government Minister Nga Kor Ming. (pictured)

Under the proposed amendments, Nga said enforcement will involve blacklisting not only the developer company, but also its board members, parent company, subsidiaries, and even the ultimate beneficial owners linked to abandoned or sick commercial projects.

Engagement sessions with the authorities and stakeholders are ongoing, and if everything goes smoothly, the amendment bill will be tabled in Parliament by next year, he noted.

“With the proposed amendments, we want to ensure more holistic and effective enforcement to safeguard buyers and strengthen accountability in the property sector,” Nga told Parliament during the oral question-and-answer session on Monday.

There were 233 delayed developments and 360 ‘sick’ projects nationwide as at June 30, 2025.

A task force under the ministry has successfully revived 220 sick projects, which have since obtained the crucial Certificates of Completion and Compliance, while another 14 projects have been reclassified as “projek lancar” (projects with smooth progress).

Under the current legislation, housing project developers and board members involved in abandoned or sick projects will be blacklisted, and any other companies linked to the same directors will be barred from applying for new development licences.

Existing housing development accounts managed by the affected entities would likewise be frozen, Nga added.

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