The government is improving the Housing Development (Control and Licensing) Act 1966 (Act 118) to ensure that the appointed liquidator plays the role of the housing developer to resolve the project rehabilitation issues in order to protect the interests of the purchasers of an abandoned housing project.

Deputy Local Government Development Minister Akmal Nasrullah Mohd Nasir said under Act 118, no action could be taken against liquidators who refuse to complete abandoned projects because they have the right and authority to manage the affairs of a development from the court.

He said liquidators could also impose a service charge based on the Companies Winding-up Rules 1972 for the services provided and the charge rate is subject to the complexity of their role in managing the affairs of the housing project.

“The ministry is aware that buyers are dissatisfied with this fee. Therefore, KPKT is holding engagement sessions with responsible agencies and bodies such as the Malaysian Department of Insolvency, Accountant General’s Department of Malaysia and Insolvency Practitioners Association of Malaysia.

“It is for the purpose of obtaining the best view and mechanism in settlement of abandoned private housing projects related to the liquidator, including a uniform payment charge rate and liquidator’s fee,” he said when replying to a question from William Leong Jee Keen (PH-Selayang) in the Dewan Rakyat here today.

As of April 30, a total of 112 private housing projects had been declared abandoned and 50 of those projects had been taken over by liquidators; one project under the receiver and manager, while the rest are still under the original developer.

Source: BERNAMA News Agency