The Ministry of Housing and Local Government (KPKT) is taking serious steps to tackle one of Malaysia’s long-standing housing issues — abandoned private projects. On November 20, the ministry will be announcing five new reforms aimed at completely wiping out such projects by 2030.

Housing Minister Nga Kor Ming said the changes are part of a bigger plan to tighten governance, improve financial management, and give homebuyers better protection. One of the main goals is to shift the industry from the usual “sell then build” (STB) system to the “build then sell” (BTS) model, which offers more security for buyers.

Under the 10:90 BTS scheme, buyers only pay 10% upfront, and the rest — 90% — is paid after the project is completed and certified. Nga said this method greatly reduces the risk of projects being abandoned or leaving buyers with unfinished homes. “The government supports the BTS model because it protects buyers and makes sure developers deliver as promised,” he said in Parliament.

Still, the government won’t make the BTS model mandatory for now. Nga explained that not all developers have the financial strength or resources to take on BTS projects, and forcing it could hurt smaller players in the market.

To support the shift, KPKT is updating the Housing Development (Control and Licensing) Act 1966 (Act 118). The amendments will focus on improving financial management, tightening developer regulations, and strengthening homebuyer rights. Nga also reminded that developers need solid financial backing to carry out BTS projects smoothly.

On top of that, developers are now required to put down a 3% deposit of their project’s gross development value (GDV) into a housing development account. For example, a project worth RM1 billion would need a RM30 million deposit — a move to make sure there’s enough cash flow to keep construction going.

Nga also shared some good news: the ministry’s taskforce on abandoned projects has managed to revive 1,600 developments so far, benefiting around 163,000 homebuyers nationwide. “This is part of our effort to not only fix abandoned projects but also prevent them from happening again,” he said.

With these new reforms, KPKT hopes to create a stronger, more transparent housing industry — one where buyers can finally feel confident that the homes they’ve paid for will actually be completed.