In recent years, Ministry of Housing and Local Government (KPKT) has taken firm enforcement action by blacklisting property developers that fail to comply with Malaysia’s housing laws. These actions are carried out under the Housing Development Act (Act 118) to protect homebuyers from abandoned projects, financial mismanagement, and misleading sales practices. The blacklisting mechanism is designed to prevent irresponsible developers from continuing operations without rectifying past violations.
According to official announcements, over 100 property developers have been blacklisted for offences such as failing to submit audited accounts, not updating construction progress reports, misusing Housing Development Accounts, and abandoning residential projects. Once blacklisted, these developers are barred from applying for new housing licences, while their directors are also restricted from registering new companies under different names to bypass enforcement.
The government has further tightened regulations by introducing stronger penalties against developers involved in abandoned housing projects. These include freezing company accounts, legal prosecution, and proposals for travel restrictions on company directors who repeatedly violate housing regulations. Such measures signal Malaysia’s commitment to strengthening buyer protection and restoring confidence in the property market.
For homebuyers and investors, checking a developer’s compliance status is now more critical than ever. The public is encouraged to verify project and developer records through TEDUH, the official housing information portal managed by KPKT. This step helps buyers avoid high-risk developments and ensures purchases are made only from licensed, compliant developers.
As Malaysia’s real estate market continues to attract both local and foreign buyers, regulatory enforcement plays a vital role in maintaining market stability. The ongoing blacklisting of non-compliant developers sends a clear message: only transparent, financially responsible, and law-abiding developers will be allowed to operate, safeguarding long-term buyer interests and the overall health of the housing sector.
