Kuala lumpur: The Housing and Local Government Ministry (KPKT) has taken immediate measures to prevent a rise in delayed and abandoned housing projects, following a 30 per cent increase in construction costs due to the global supply chain crisis.

According to BERNAMA News Agency, KPKT secretary-general Datuk Dr M Noor Azman Taib stated that the unexpected crisis has directly affected the country's housing industry, which involves more than 200 construction supply chains worth billions of ringgit. Noor Azman highlighted that costs have risen by between 20 and 40 per cent, with an average increase of about 30 per cent, as discussed during engagement sessions with stakeholders.

To address the issue, KPKT's Task Force on Sick and Abandoned Private Housing Projects (TFST), established in 2023, is actively working on solutions, with 99 large-scale abandoned housing projects recorded so far. Noor Azman mentioned that they have identified these sick and abandoned projects to implement mitigation measures. The ministry is searching for 'white knights' to take over and rescue the projects and is easing the process until the Certificate of Completion and Compliance (CCC) is issued.

Furthermore, Noor Azman noted that the ministry, through the National Housing Department, is reviewing applications from severely affected developers for extensions to project timelines. These applications are assessed on a case-by-case basis to ensure delays are due to the current crisis, rather than poor management by developers.

Meanwhile, in efforts to support small traders, Noor Azman stated that the ministry has called on local authorities nationwide to lower rental rates for business premises under their management. This proposal was tabled at the National Economic Action Council (MTEN) meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim. Several states, including Kuala Lumpur, Selangor, and Melaka, have taken proactive steps in response.

Noor Azman emphasized that the crisis has affected not only the housing sector but also small traders. While no fixed rate of reduction has been set, state local authorities are encouraged to decide on appropriate cuts to help ease the burden on traders. The ministry aims to reduce the pressure from the crisis on small traders through these strategies, urging other states to join in these efforts.