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Ensuring every Malaysian citizen has safe
and adequate housing
Monday, 24 Feb 2025
LETTERS 
3:44 PM MYT
ABANDONED housing projects have been an unsettled problem in Malaysia since the 1970s. In earlier
decades, the government directly provided housing. However, limited public funds combined with
soaring demand necessitated the private sector's involvement. Despite numerous policies and legal
frameworks, the problem endures, leaving many buyers to suffer  nancial loss, emotional distress, and a
lack of legal redress.
Existing laws governing land, banking, housing development, insolvency, and Islamic  nance have not
suf ciently safeguarded home buyers. An exorbitant focus on pro t maximisation, unreasonable
investor demands, and a disregard for the Islamic duty to ensure justice have contributed to the
problem. The result is a system that fails to protect the rights of purchasers in abandoned housing
projects.
Introduced during the 5th Malaysia Plan (1986-1990), the build‐then‐sell (BTS) system requires
developers to complete construction and secure proper certi cation before selling units. Under BTS
system, buyers pay only 10% of the purchase price upon signing the sales and purchase agreement, with
the remaining 90% due upon completion – which is when a Certi cate of Completion and Compliance
(CCC) is issued.
This system is designed to transfer the  nancial risk from the buyer to the developer. This can reduce
the likelihood of project abandonment and ensure quality workmanship and timely delivery.
Australia, Singapore, and the United Kingdom and have successfully implemented similar systems to
protect consumers. By adopting BTS, Malaysia could better uphold the right to adequate housing, as
propounded in Article 25 of the Universal Declaration of Human Rights and Article 11(1) of the
International Covenant on Economic, Social and Cultural Rights. In addition, this right is relevant to
Article 5(1) (the right to life and personal liberty), Article 8(1) and (2) (equality before the law), and
Article 13(1) (right to property) under Malaysia’s Federal Constitution.
To encourage the BTS system, the government should consider offering incentives such as:
> Tax relief: Reduce the tax burden on developers who adhere to BTS guidelines.
> Financial support: Provide backing through instruments like government-supported Islamic Sukuk.
Despite the potential bene ts, the industry remains resistant. Developers and investors favour the
traditional sell‐then‐build (STB) model, which offers quicker pro t realisation. Consequently, while
government-led projects (eg, PR1MA and SPNB schemes) have adopted BTS, many private developers
persist with the STB system, compromising consumer protection.
Providing adequate housing is not solely about pro ts – it is a fundamental human right. Recognising
that public funds alone are insuf cient, a collaborative model is essential. One suggestion is to create a
uni ed housing development authority for Malaysia's housing industry, similar to Singapore's Housing
and Development Board (HDB). This body, structured as a consortium of government and private
developers with the government holding a majority stake, could:
> Enforce the BTS system rigorously.
> Ensure transparent, equitable practices in housing delivery.
> Balance investor expectations and the public's right to quality workmanship and timely housing.
Such a model would protect buyers, foster sustainable industry practices, and promote social justice
while supporting economic growth.
The enduring issue of abandoned housing projects undermines the public's right to an adequate
standard of living. Implementing a robust build‐then‐sell framework supported by suitable incentives
and a uni ed regulatory body could protect home buyers, ensure timely delivery and quality
construction, and complying Malaysia's housing practices with international human rights standards.
It is time for a decisive change to ensure every citizen has the right to safe and adequate housing.
PROF DR NUARRUAL HILAL MD DAHLAN
School of Law
Universiti Utara Malaysia
Exco, Malaysian Academic Association Congress (MAAC)
 


Ensuring Every Malaysian Citizen Has Safe And Edequate Housing

Northern University of Malaysia

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