OUTCRY AS JAIL TERM FOR ROGUE DEVELOPERS CUT - KOTA KINABALU SABAH MALAYSIA

OUTCRY AS JAIL TERM FOR ROGUE DEVELOPERS CUT - KOTA KINABALU SABAH MALAYSIA

@Jr_Paku Midin Channel

KOTA KINABALU (April 17, 2025): A proposal to reduce the prison sentence for developers who abandon housing projects from five to three years has drawn criticism from several members of the Sabah State Legislative Assembly.

The amendment was presented today as part of the Housing Development (Control and Licensing) Enactment (Amendment) Bill 2023 (Amendment) 2025.

The Bill was tabled by Deputy Chief Minister Datuk Dr Joachim Gunsalam, who is also the Local Government and Housing Minister.

While the overall intent of the amendment to better protect the rights and interests of homebuyers was supported by many, Clause 4 of the Bill, which proposes reducing the maximum imprisonment period, became the focal point of intense debate and strong opposition.

Among the assembly members who voiced their disapproval were Kapayan assemblywoman Jannie Lasimbang, Tungku assemblyman Assaffal P. Alian, Tanjung Aru assemblyman Datuk Junz Wong and Bugaya assemblyman Jamil Hamzah.

Jannie, citing an abandoned housing project in her constituency, warned that the proposed reduction in punishment could send the wrong signal.

“It gives the impression that the offence committed by developers is not serious, even though violating licence conditions can result in years of suffering for buyers, particularly those from the B40 income group.

“Those who purchase homes in abandoned projects not only jeopardise their future but also risk their life savings. In Kepayan, for instance, I’ve witnessed how badly affected the buyers of the stalled Triconic Tower project have been. There’s still no solution. I truly sympathise with their plight,” she said.

Jannie argued that harsh penalties are an essential deterrent to ensure developers act with greater responsibility and integrity. She urged the ministry to provide a clear and rational explanation for the decision to lessen the penalty.

Assaffal took a firmer stance, saying the prison term should in fact be lengthened to compel developers to honour their commitments.

He also proposed that the deposit required from developers prior to launching any project in the state be increased to further safeguard buyers’ interests.

“In Lahad Datu, there are buyers of the Taman Khazanah project who have never been able to move into their homes, even after retirement, because the development was abandoned.

“As elected lawmakers, it is our responsibility to defend the rights of these people. Developers who behave this way should not be protected. They exploit buyers and harm the public. This Bill should be a stronger instrument to fight for the people,” he said.

Meanwhile, Junz admitted that he had not previously known that Sabah law allowed for the imprisonment of developers who abandon their projects.

“I find this very interesting because I wasn’t aware that such a jail sentence existed. To my knowledge, no developer in Sabah has ever been jailed under this law.

“There are many cases of abandoned projects here. Some developers have even passed away, and yet no one has ever been held accountable. I call on the government to take stricter action, including blacklisting these developers from undertaking any future housing developments in Sabah,” he added.

In response, Joachim explained that the reduced sentence was introduced to bring Sabah’s laws in line with those at the federal level. However, this explanation was challenged by Jamil, who said such a move undermines the dignity of the State Assembly.

“The differences between state and federal laws are not a problem. There are already many areas where they differ, including syariah law. But when it comes to abandoned housing projects, we must look at the issue from a fairer perspective.

“Why are house prices in Kuala Lumpur higher than in Sabah, yet when it comes to sentencing, we’re standardising it? The laws we pass in this Assembly are a reflection of our honour. I believe reducing the sentence damages the integrity of this assembly. It would be far better to maintain the current penalty,” he said.

For the record, the original amendment to the Enactment was passed in 2023 to reflect the current needs and growing demands of the public.

However, in an effort to further improve the legislation, a new round of amendments was introduced following consultations with stakeholders, including the Sabah Housing and Real Estate Developers Association (SHAREDA), Sabah Law Society (SLS), Royal Institution of Surveyors Malaysia (Sabah Branch), Pertubuhan Arkitek Malaysia (PAM Sabah Chapter), The Institution of Engineers Malaysia (Sabah Branch) and the Sabah State Attorney-General’s Department.

Joachim noted that the revised Bill encompasses four key clauses, including provisions for the commencement date, exemptions for certain government agencies, the use of developers’ deposits to fulfil obligations in failed projects and the controversial reduction of the prison term for abandoning developments.

“This Bill has gone through a comprehensive and inclusive process, involving close collaboration between the ministry, relevant departments, government agencies and industry stakeholders before it was finalised,” said Joachim.

Despite the heated objections and concerns raised during the debate, the Bill was eventually passed by the State Legislative Assembly.

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