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Blacklisted Developers In Malaysia

Before committing to such a big-ticket purchase, check if the developer has faced any problems in their projects. Recently, the National Housing Department (JPN) has released an updated list of blacklisted property developers based on the Housing Development (Control and Licensing) 1966 [Act 118].

This blacklist is divided into four categories as below.

1. Property Developers Without Licenses

A property developer needs to have a license and permit before commencing the project development and selling it to the public. Failing to do so is an offence under the Housing Development (Control and Licensing) Act. Usually, the developer will display the license and permit number on their pamphlet, brochure or at their sales gallery.

There were 106 developers on the blacklist for failing to have a license, and here are just some of them:

  • Aghniyak Builders Sdn Bhd
  • Happy Home Development Sdn Bhd
  • Intelligent Mission Sdn Bhd
  • Juwasa Hikmat Sdn Bhd
  • Kompobina Sdn Bhd
  • Oridua Construction Sdn Bhd
  • Paragon Nova Sdn Bhd
  • Pembinaan LS Sepakat Sdn Bhd
  • Ummah Cemerlang Sdn Bhd
  • Zest Properties Developer Sdn Bhd

Check out the full list here (updated as of 30 NOVEMBER 2020).

2. Property Developers with Abandoned Projects

There are many reasons for a project to be abandoned. It could be because of inexperienced developers, poor marketing and sales strategies, financial problems, challenging economic conditions, disputes between shareholders, mismanagement of the company and business affairs, or even lack of enforcement and monitoring by the authorities.

Big name developers often have the experience and financial capital to add that additional level of security to your property purchase, with far less chance of a project being abandoned due to the company going under.

That’s not to say you should ignore smaller developers, but it might raise the risk and inspire you to do even more in-depth due diligence.

Remember to research! The blacklist included 187 property developers responsible for abandoned projects, and here are just some of them:

  • Bahagia Indah Properties Sdn Bhd
  • Conci One (M) Sdn Bhd
  • Evergreen Acres Sdn Bhd
  • Ganda Selat Sdn Bhd
  • KA Resources Sdn Bhd
  • Linear Legend Sdn Bhd
  • Mekar Kota (M) Sdn Bhd
  • Primeplan Sdn Bhd
  • SL Work Force Development Sdn Bhd
  • Tang & Lee Development Sdn Bhd

Check out the full list here (updated as of 8 DECEMBER 2020).

3. Property Developers That Didn’t Honour Tribunal for Homebuyer Claims

Tribunal for Homebuyer Claims provides an easier, cheaper and faster means of dispute resolution for home-related issues from the housing developers i.e. late delivery of vacant possession. This is great to protect your rights as a buyer. 

This body was introduced in 2002 to oversee legislation under the Housing Development (Control and Licensing) Act 1966.

This tribunal is a simplified dispute process to allow claims by homebuyers for developers failing to deliver on promised properties or breaches of the Housing Development Act (HDA).

It costs just RM10 to lodge a claim, although claims must be for a value less than RM50,000, and the decision constitutes a legally binding court order.

Although it’s worth noting there is a 12-month period from receiving the CCC or expiry of the defect liability period to lodge a claim.

Unfortunately… this still doesn’t stop some developers from failing to abide by these judgements.

If a property developer is blacklisted for failing to honour tribunal claims, you can get a good kind of indication what kind of developer might be.

There were 294 developers on this part of the blacklist, and here are just some of them:

  • Anglo Ventures Sdn Bhd
  • Benih Murni Sdn Bhd
  • Coral Lane Construction Sdn Bhd
  • Ever Nobel Sdn Bhd
  • GYC Development Sdn Bhd
  • Indera Development & Construction Sdn Bhd
  • Juwita Kasih Sdn Bhd
  • Kansas Corporation Sdn Bhd
  • Mudi Angkasa Sdn Bhd
  • Oxbridge Heights Sdn Bhd

Check out the full list here (updated as of 8 JANUARY 2021).

4. Property Developers Who Failed to Settle Compound Payment

Compounds are an additional fee imposed on developers for breaking the law. That means a developer who failed to settle compound payments not only breached a legal duty, but then followed up by failing to pay the penalty for it.

That doesn’t sound like the kind of developer we’d feel happy with, building our dream home! There were 403 developers on the blacklist for failing to settle compound payments, and here are just some of them:

  • Genting Global One Sdn Bhd
  • Kupang Indah Development Sdn Bhd
  • Morubina Sdn Bhd
  • Pioneer Region Sdn Bhd
  • Sweet Harvest Development Sdn Bhd
  • Usbu Juwana Development Sdn Bhd
  • Winfast Corporation Sdn Bhd
  • Yontec (M) Sdn Bhd
  • Zaza Property Sdn Bhd

Check out the full list here (updated as of 8 JANUARY 2021).

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