The government is drafting amendments to the Housing Development (Control and Licensing) Act 1966 (Act 118) to extend its scope to problematic commercial developments, including shop lots and offices.

Housing and Local Government Minister Nga Kor Ming said the current law only regulates residential projects by requiring developers to obtain licences under strict conditions, leaving commercial developments outside its jurisdiction.

Under the proposed changes, enforcement will be strengthened by blacklisting not only the developer company but also its board members, parent company, subsidiaries and ultimate beneficial owners linked to abandoned or sick projects. Engagement sessions with authorities and stakeholders are ongoing, and the bill is expected to be tabled in Parliament next year.

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

As of June 30, 2025, there were 233 delayed developments and 360 sick projects nationwide. A task force under the ministry has revived 220 sick projects, which have since obtained Certificates of Completion and Compliance, while another 14 projects were reclassified as “projek lancar” (smooth-progress projects).

Currently, developers and board members involved in abandoned or sick housing projects are blacklisted, and any other companies linked to the same directors are barred from applying for new licences. Existing housing development accounts under such entities are also frozen.

Nga stressed that expanding Act 118 will close regulatory gaps and protect buyers of both residential and commercial properties.

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