In a decisive move last week, Malaysia’s Ministry of Housing and Local Government (KPKT) announced that it is exploring amendments to the Housing Development (Control and Licensing) Act 1966—commonly known as Act 118—to bring more effective and sweeping accountability to the real estate sector. The planned revisions would extend blacklisting not only to parent developer companies but also to the actual individuals who benefit from them. As Minister Nga Kor Ming explained during a session in the Dewan Rakyat, this dual-layered approach aims to close loopholes that currently allow problematic developers to evade consequences merely by hiding behind a corporate facade.
The timing is pressing. Malaysia’s Task Force for Sick and Abandoned Private Housing Projects has already identified hundreds of troubled developments: as of June 30, there were 233 delayed projects and 360 designated “sick” developments across the country. Among these, 220 had obtained a Certificate of Completion and Compliance, and only 14 had been revived, collectively restoring 25,822 housing units to active status. Still, these numbers pale in comparison to the broader backlog—1,127 abandoned projects have since been brought back on track, benefiting around 135,000 homebuyers.
Under the current framework, once a project is confirmed as “sick,” the housing developer and board members can be blacklisted, subsequently barring affiliated companies from applying for new development licenses and freezing their existing Housing Development Accounts. The proposed amendments would take this further by identifying and penalising the underlying individuals behind these entities, a move that is expected to deter misconduct more effectively.
To bolster transparency, KPKT has introduced the “Teduh” portal, a special system where prospective homebuyers can check which developers—and by extension, which individuals—have been blacklisted. This allows greater visibility into the reputability of developers before one commits to purchasing a home. Thus far in 2025 alone, 109 developers have been blacklisted, signaling a firm governmental stance in protecting public interest.
Analysis & Expectations
Why These Amendments Matter
Traditionally, Malaysia’s property sector has seen unscrupulous developers exploit legal separation between parent companies and subsidiaries to evade accountability. By targeting both the corporate entities and the beneficiary individuals behind them, KPKT’s proposed changes disrupt this protectionist structure. Removing this veil is a significant stride toward ensuring that developers cannot simply wash their hands of liability by reshuffling corporate names.
Enhancing Deterrence through Individual Accountability
The existing policy of blacklisting at the company level often falls short, as board members and owners can easily shift to new entities and restart operations unhindered. Extending blacklisting to individuals—not just companies—adds a much-needed layer of personal consequence, elevating the perceived risk of malfeasance. This signal of deterrence is bolstered further by publicly accessible tools like the Teduh portal, which empower homebuyers to base decisions on transparent data.
Rebuilding Buyer Confidence
Transparency is foundational to rebuilding trust in Malaysia’s property market. With around 135,000 homebuyers affected by revived projects, these changes could restore confidence in both the government and developers. In particular, blacklisting individuals responsible for project failures reinforces the message that buyers’ rights are not secondary to corporate maneuvering.
Challenges Ahead
The effectiveness of these amendments rests on rigorous implementation. Monitoring and legally tying individuals to errant projects—especially when proxies or complex corporate structures are involved—poses practical challenges. Additionally, strengthening policy must be paired with more aggressive enforcement mechanisms, such as prosecution under existing laws, to avoid blacklisting becoming symbolic rather than transformational.
In Conclusion
Malaysia’s move to blacklist not only developer companies but also the individuals behind them represents a vital shift toward meaningful accountability in its housing sector. While the structural and practical obstacles are formidable, the proposed amendments offer real promise: deterring misconduct, enhancing transparency, and safeguarding the interests of homebuyers. For The Ledger Asia’s readership, this marks more than a policy tweak—it signals a potential turning point in the governance of Malaysia’s property industry.
