KPKT rehabilitates 1,726 troubled housing projects involving 199,643 units

Malaysia's Housing and Local Government Ministry says it rehabilitated 1,726 troubled private housing projects involving 199,643 units with a combined gross development value of RM158.16 billion between 2023 and August 2026. Of these, 1,542 sick projects were completed and obtained their Certificate

PETALING JAYA (Oct 19): The Housing and Local Government Ministry (KPKT) said it had rehabilitated 1,726 troubled private housing projects involving 199,643 residential units, with a combined gross development value (GDV) of RM158.16 billion, between 2023 and August 2026.

Of the total, 1,542 previously classified as sick projects were completed and obtained their Certificates of Completion and Compliance (CCC), involving 163,621 housing units with a GDV of RM115.74 billion, the ministry said in a statement on Monday. Another 147 sick projects, comprising 29,900 units with a GDV of RM40.92 billion, were restored to satisfactory progress status.

Meanwhile, 37 abandoned projects involving 6,122 units with a GDV of RM1.504 billion were rehabilitated through physical completion or other resolutions benefiting homebuyers.

Deputy Housing and Local Government Minister Datuk Aiman Athirah Sabu said the achievements resulted from coordinated interventions by the Task Force for Sick and Abandoned Private Housing Projects (TFST), which monitors troubled developments and facilitates recovery measures. She said the government's priority was to protect homebuyers affected by delays or failures in housing project completion.

“Behind every successfully rehabilitated housing project are homebuyers and families waiting for their homes. KPKT is committed to ensuring that every troubled project is addressed effectively so that the rights and interests of homebuyers continue to be protected,” she said during a working visit to Residensi Hektar Gombak on Monday (Oct 19).

Despite the recovery efforts, KPKT's figures as at Aug 31, 2026, showed that Peninsular Malaysia still had 128 delayed private housing projects involving 29,048 units with a GDV of RM24.39 billion. Another 278 projects were classified as sick, involving 40,818 units with a GDV of RM38.02 billion. The ministry also identified 99 licensed abandoned projects involving 28,289 units with a GDV of RM15.40 billion, alongside 163 unlicensed abandoned projects comprising 10,605 units.

Aiman Athirah said KPKT had intensified site inspections to identify and address construction and administrative issues affecting project progress. As at August 2026, the ministry had conducted 33 working visits to delayed and sick housing projects. Following intervention and coordination of subsequent actions, 23 of the projects visited had obtained their CCC.

Among the developments benefiting from TFST intervention is Residensi Hektar Gombak, which had reached 92.67% physical completion. Aiman Athirah said the project was expected to be completed in the first quarter of 2027, with vacant possession scheduled to be handed over to purchasers in the second quarter.

KPKT said progress at the development followed coordinated negotiations among stakeholders to agree on a recovery plan. The efforts also involved support from local financial institutions in providing financing facilities to the rescue contractor, enabling construction work to continue towards completion.

“Monitoring cannot rely solely on reports. On-site visits allow actual issues to be identified more quickly, thereby accelerating the coordination of solutions with technical agencies, local authorities, utility companies and the developers involved,” Aiman Athirah said. She added that KPKT would continue strengthening TFST's role through early intervention, closer monitoring and targeted recovery measures according to the status and complexity of each troubled project.