BNV6115 - Preventing Abandoned Residential Projects in Malaysia

This report provides an in-depth analysis of the prevention of abandoned residential construction projects in Malaysia. It begins with an introduction to the research topic, highlighting the importance and issues surrounding the abandonment of housing projects. The literature review explores housing development, the effects and implications of abandoned housing, causes, and preventive measures. The research methodology outlines the research approach and strategy, including justifications for the chosen methods. The report aims to understand the incidence and issues of abandoning residential construction projects, identify various causes and reasons for abandonment, analyze the impacts, and suggest initiatives for prevention. This document is available on Desklib, a platform offering a wide range of study resources for students.

STUDY ON PREVENTION OF ABANDONED RESIDENTIAL
CONSTRUCTION PROJECTS IN MALAYSIA
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1. Abstract
The research proposal talks about prevention and precaution taken to protest against abundance
construction of residential building projects with in Malaysia. It provides a brief introduction on
abandonment of construction projects for residential building where the preliminary issues and
objectives of the research have been stated. In the literature review section, it provides a detailed
analysis of housing construction and the issues in building up of residential apartments. It also
describes causes of the abandoning housing projects and a brief analysis of preventions taken to
restrict abandonment of the housing projects. In the research methodology entire research
approach and strategy is present with proper justification.
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Table of Contents
2. Introduction..................................................................................................................................3
Research topic..............................................................................................................................3
Importance and Research issues..................................................................................................3
Areas of research.........................................................................................................................4
Research objectives and aim........................................................................................................5
3. Literature review..........................................................................................................................6
Housing development..................................................................................................................6
Abandoned housing.....................................................................................................................7
Effects of the abandoned housing project....................................................................................8
The implication of this abandoned projects.................................................................................9
Cause of abandoned housing project.........................................................................................10
Prevention of the abandoned housing project............................................................................10
4. Research Methodology..............................................................................................................13
Research approach.....................................................................................................................13
Justification for the research approach......................................................................................13
Details of the research process..................................................................................................14
References......................................................................................................................................15
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2. Introduction
Research topic
The research topic is to provide an amplified study over prevention of the abandoned
construction projects of residences in Malaysia. Abandoned projects of residential buildings is
one of the greatest issues that can be found in Malaysia. Prevention of them is necessary as bulk
of population cannot really exist without constructing proper amount of residential buildings and
apartments. Additional formulation and initiatives of the upgraded solutions can furthermore
strengthen as well as enhance ongoing policy of the resuscitating and pre-empting abandoned
housing projects.
Importance and Research issues
Abandonment of housing projects at the time of constructing them is one of the most prevailing
issues of housing sector situated in Malaysia since the very 1980s. One of the classic reasons for
abandoning the housing projects has been predominantly some unforeseen factors which results
from initial estimation of the developers of development cost of housing projects at the planning
stage. Discrepancies between actual and estimated construction cost make housing projects
unfeasible at the implementation phase so that the developers abandon housing projects. Factors
that basically put into the abandonment of these projects can be classified as- economic, Legal,
financial, system related, unforeseen and managerial risks (Rahman et al. 2013). Additional
oversupply of the properties, insolvency of the developers and uncompetitive Housing selling
prices are some of the major factors which was sent the issue of abandoning housing projects.
However, there are some precautionary steps taken for solving this particular problem which
includes rehabilitation of the abandoned projects as well as other initiatives for reserving light of
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the purchases by appropriate legal endorsement of resolution. The two most generalised effects
of residential project abandonment in Malaysia can be categorised into social economic and
environmental impacts. both long term and short term impacts arise which involve increasing
unemployment a prolonged conflict among stakeholders, modification of landscape, losing
economic value and area value, population marginalisation and transferring the coast among
public and private sectors (Rahman et al. 2013). It also includes erosion decrease in biodiversity
together with rising pollution. Pressing issue of the abandoning housing projects is one of the
most burning topics in media and became a great concern to the stakeholders engaged in those
projects. Primarily they are the house purchases and government. Therefore, abandoning housing
projects have an adverse impact over stakeholders apparently. Through several reviews of the
studies regarding recent situation of the abundant residential projects within Malaysia is yet a
lacking concern.
Areas of research
Actually the paper aims in highlighting impacts on causes of the abandoned projects of housing
along with its prevention. Several research areas have been found in the study and therefore it is
more concentrated over the causes and effects of abandoning residential projects. The study on
the maximum note concentrates over identifying the issues and fatal effects of construction
abandonment of the housing projects. It also projects out different reasons and causes which are
responsible for such situation in Malaysia. Research is therefore conducted on several issues
related to abandonment of the construction projects and initiatives taken for its prevention. The
study also suggests additional research that can be constructed for identifying several risks which
are involved in rehabilitation process. Also, the implications of abandonment of the residential
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projects is provided. The research is also undertaken to understand and identify various causes as
well as reasons behind restricting the construction projects of houses and apartments in Malaysia.
Research objectives and aim
Aim of the research is to provide a detailed analysis of the prevention to abandoned projects of
residential construction in Malaysia.
Some of the objectives to be followed for the research are:
 to understand the incidence and issues of abandoning residential construction projects in
Malaysia
 to identify various causes and reasons for abandoning the residential projects weed in
Malaysia
 to analyse the impacts of abandonment of construction housing projects in Malaysia
 to suggest some initiatives and prevention of abandoning the building projects within
Malaysia
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3. Literature review
Malaysia is one of the developing countries, which is associated with buildup or constructing
huge complexes for future residence of the Malaysians. However, as the number of projects is
increasing the number of abandoned building projects is also one of the most concern matters of
Malaysia currently. According to Ahzahar et al. (2011), thousands of buildings are unfinished or
incomplete in all over the Malaysia, which is one of the concerned of this country. Because of
this left incomplete constructions in all over the country prevention became one of the essential
areas and for that understanding, the cause and effects of this abundant projects need to be
considered.
Housing development
For the development of house construction, the Malaysian government has a five years plan
which is part of their economic and social objectives. It is stated by Chia (2012), the house
developer act (1966) and the Housing Developers’ Regulation (1989) are considered as the most
relevant laws related to the Housing Development of Malaysia. The overall housing projects are
being supervised by the Ministry of housing and local government. The Housing Development is
being interrupted by a different type of issues, and for minimising the failures of the project, the
government are taking significant steps for controlling the total risk. An abandoned housing
project is not only related to the land space it is acquiring but also because of the involvement of
a huge number of human resource and other materials, ultimately a significant loss for the project
owner as well as for the country.
According to Chong and Rosli, (2018), in the act of housing developers, the Housing
Development referred as for the housing accommodation of Malaysian people the business of
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building or developing a construction which is also part of the growth and development of
modern Malaysia.
In the developing country like Malaysia, there is selling of the plan concept which is associated
with the housing buyers association. According to this plan, the poor or uncompleted houses are
being sold to other parties who can manage the total project. Dickin et al. (2014) has stated that
there are also drawbacks of this plan because the sales and purchase agreements are very
complicated and most of the time the potential buyers are being impressed in the initial phases,
but the actual building is different.
Abandoned housing
Because of the numerous causes, Malaysia is facing problems related to the housing projects
which are developing abandoned project numbers. However, it has been found out that the
number of requirements of a housing project like titles approval of the land, late delivery of the
house and supplies are directly increasing the number of housing projects which is also affecting
the buyers of those houses. In identifying the different categories of abandoned projects in
Malaysia, four different groups are seen. The first category includes the projects which are
associated with the prospect of rehabilitation, the second type of abandoned project are those
which are taken over by other developers. Similarly, those projects that are not suitable for
restoration and finally the rehabilitated and completed projects. According to the records of
Malaysian government, Eusuf et al. (2012) stated that most of the project has become abandoned
because of the economic downturn. Additional the report also convey that different economic
situations in Malaysia like unemployed people, economic recession, reluctant to Grand housing
loans also directly involved with this projects.
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The administration of Malaysian government has given a clear image of the abandoned housing
project. According to them if construction of housing is being stopped for more than six months,
then it will be considered as an abandoned project. According to the sale purchase agreement,
within 36 months of the completion period, the housing project needs to be sell or purchase.
According to Hussin et al. (2013), in the duration of the six months of the discontinuation of
work, the offices of the housing ministry have to properly declare that the developers of the
project are not able to continue the total work as a developer.
Effects of the abandoned housing project
The developers of the project face the main impact of the abandoned housing project. This is
because most of the time it has been seen that the developers are working on the project by
taking a loan from the bank. If the project is unfinished and uncompleted in the middle of the
work, then the total loss is being faced by the owner of the project.
In addition to that, Khalid (2010) said, the worst case scenario is the developer of the housing
project did not seem to pay back to the bank, the money of the loan and become bankrupt. In this
condition, the bank blacklisted them from any other transaction to the bank and also the
reputation of the project developing organisation become a huge failure in the construction
industry. However, there are also huge human resources which are being appointed by the
project developers as a contract base work and because of this condition they also lost their job
in the middle of nowhere and become unemployed. In addition to that, the buyers of the housing
project also become uncertain about their future residential complex. As a result of the blacklist
the project developing organisation. Finally, it can be said that because of the abandoned housing
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project the total land of the project become unused. In time the place becameabantant, and
landslides started because of the under-construction condition.
According to the report of the ministry of housing and local government, there are more than 150
projects in the total area of the peninsular Malaysia where abandoned housing projects are
observed. Similarly, Ahzahar et al. (2011) stated, the problems also include more than 50000
housing units as well as more than 32000 purchasers. In addition to that, the different locations
like Johar, Selangor, and Negeri contain this abundant projects. As these places are very
renowned in Malaysia, the purchases are become total hopeless about the housing developers and
lose their confidence in them. Because of the situation, thousands of people from Malaysia is
questioning about the failure of this project and this issue need to be considered and resolved by
the government urgently.
The implication of this abandoned projects
This project has usually infected negatively in this country is the environment, economy and
Society. However, this project has lots of future opportunities which will help the country in its
growth and development. Similarly, according to Masudi et al. (2011), because of these projects
unfinished structure different diseases are arising, because of breeding of mosquitoes, in addition
to that, the number of criminal activities is also rising because of this unfinished structure which
is directly encountering the safety of the total population of Malaysia. As this places, all project
become abandoned the consumption of a different type of garbages is covering this area which is
directly affecting the environment of this country. Overall it can be said that the communities
cities of Malaysia are being impacted by this type of projects both economically,
environmentally as well as physically or biologically.
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Cause of abandoned housing project
According to Rahman et al. (2013), in understanding the main reasons behind the abandoned
projects in Malaysia, it has been seen that this process of abandonment has started long before
this current scenario. The government also have implemented a huge amount of effect for
preventing this issues, but these challenging issues are counted among the most challenging
problems which are part of the Malaysian society. The housing department of Malaysia has also
implemented different rules and policies related to the home purchasing and construction
industry. This is because the homebuyers risk a huge amount of money on this construction
which has resulted in the total failure for them in the end. In describing the main reasons behind
these projects in Malaysia are improving economic conditions of this country.
In addition to that Jamaludin et al. (2017), has stated, insufficient public delivery system and
financial issues also taken part in this reasons. However, the Council policies are also not
prominent in the construction industry which may cause this continuous disrupting issues of
Malaysia. Finally, the mismanagement of the total procedure is the main reason behind this
abandoned structures.
Prevention of the abandoned housing project
For controlling these causing factors, the government and also the project developers need to
understand the necessity of these causes. For avoiding the mismanagement, the project
developers need to develop proper planning and schedule et al. for the total project
establishment. Before starting the entire project, they also need to consider the public delivery
system which will be a huge part of the project. The other issues or causes need to be considered
by the government and ministry of Housing Development. According to Sulaiman (2012), the
economic conditions of this country sometimes also need to disapprove the projects in the time
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of economic instability because as a result at the time most of the project becomes uncompleted.
Finally, the council policies need to be properly verifying by the government and ministry and
restructuring the properties for providing more benefits to the project developers and buyers of
these housing properties. According to Teng and Singh, (2011), it can be said that the financial
issues may arise in the middle of the project, but it is the responsibility of the developers to
establish appropriate and adequate plan for such financial conditions. By managing these causes,
the government of this country develops their prevention strategies,
From these causes, it can be said that the government of this country need to look into these
areas for preventing the cases of abandoned housing projects. However, currently, there are
various types of trends, which are being used by developed countries for reconstructing the
abundant areas and also use different advertising and marketing strategies for selling those
restructured housings. Yap (2013) stated that, as the Malaysian government is considering this
issue among the major issues, need to stop or reduce they can also use the techniques used by the
foreign countries.
In addition to that, the methods of prevention of this challenge need to properly observe and
restructure by the government because there is message number of possibilities for the recovery
of those projects which not properly calculated and measured by the developers and the ministry
of housing. According to Subramaniam et al. (2018), most of the abundant project is causing
diseases to the population and also disrupting the condition of the environment. Therefore it
became part of the countries environmental section and health industry to focus on this problem.
By the intervention of these industries in this particular national problem of Malaysia effectively
and quickly help them in preventing this issue.
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