Prevention Of Abandoned Construction Projects Of Residences In Malaysia – A Study

Importance and Research issues

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.

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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 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.

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 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.

Areas of research

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:

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  • 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 Malaysi

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.

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 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.

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.

Research objectives and aim

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.

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 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.

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.

Literature review

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.

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 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.

Housing development

In light of the above study, it can be established that the country Malaysia is facing challenges for more than two decades because of the abandoned housing projects. For this long and continuous problems the ministry of housing and the government have established different methods for recovery of this project, but the overall process did not work properly, and the number of abandoned housing projects are still increasing. If this country wants to demolish this problem they need to understand the causes and effects of this unfinished projects properly. These projects are not only affecting the economic and financial conditions but also the environment and Society is being impacted negatively without proper prevention.

A qualitative research approach shall be appropriate for the research. It is the process of a natural stick enquiry with Sikhs and in-depth understanding of the social phenomena under the natural setting. it focuses over why instead of what of the social phenomena and depends over direct experiences of the human beings as the meaning making agents within everyday lives. Instead of understanding statistical and logical procedures the qualitative researchers mainly used the multiple systems of the investigation for studying human phenomena such as case study, discourse analysis, historical analysis, phenomenology and grounded theory (Taylor et al. 2015). Both primary and secondary data for the research undertaking qualitative approach. In order to collect the primary data an interview shall be done with the stakeholders involved in the construction projects mainly the purchases and the builders. For gathering secondary data literature review analysis will be best however thematic analysis can be supportive.

Reasons for selecting qualitative and quantitative research approach may include that qualitative studies usually focus over smaller samples and do not often isolate variables. Quantitative research includes numerical studies of research and analysis of observation. These methods are quite epistemologically focused and bring significant insights which cannot be found in the quantitative research approach. Combining observation of participants’ historical research, surveys and the interviews may give an actual research over the reasons and effects of abandoning projects of housing in Malaysia (Merriam, 2015). Qualitative method also offer wealth of a very the information over a particular case song cases and considering a wide data set. They are limited in scope however quite rich in the depth.

The research will be undertaken by implementing an interpretivism research philosophy which will help to interpret various elements of a study and integrates the interest of researchers in to the study. it also helps in assuming accessibility to the reality by researchers which can be done through the social constructions like consciousness, language, instruments and shared meanings. Deductive research approach shall be appropriate for the research procedure because it is much more concerned with development of a hypothesis depending on the existing theory and designing the resource strategy for testing that particular hypothesis (Woiceshyn, and Daellenbach, 2018). It includes various propositions of a particular theory and testing of observations.

Deductive research approach provides a possibility for explaining the causal relationship among variables and concepts, Helps in measuring the concepts more qualitatively and generalized the research findings. Research Design that is used for the research must be descriptive in nature because it would explain different variables and their importance in the research. it also cast light over the current problems or issues after collecting information and data which enables them for describing different situations in a complete way (Ryan, 2018).

Abandoned housing

Sample size for undertaking the interview would be 3 to 5 purchasers and builders whereas for survey almost 100 participants shall be included. the interview questionnaire shall be developed in order to conducting a one to one interview with all of them and ask different questions do they must not heard the dignity of self-respect of anyone. The questions must contain 10 open-ended and close-ended questions related to causes, effects and initiatives undertaken for constructing project abandonment in Malaysia. Other tools that can be necessary for going through their answers again and again would be using a voice recorder or tape recorder which can easily record their answers and help the researchers to understand them appropriately.


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