KPKT paid RM172mil as compensation for 17 cancelled PR1MA projects

December 8, 2020

KPKT paid RM172mil as compensation for 17 cancelled PR1MA projects

A total of RM172 million have been paid by the Ministry of Housing and Local Government (KPKT) as compensation for cancelled Perbadanan PR1MA Malaysia (PR1MA) projects.

So far, the compensation paid covers for pre-development, interest delays, labour costs and others for 17 out of the 32 cancelled projects, explained KPKT Minister Zuraida Kamaruddin.

“Other projects are still in negotiation. We managed to reduce about 30% from the claims. For others, we will no longer request allocation from the federal government to manage the debts and future financing,” she told the Dewan Rakyat and quoted by Bernama.

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“We will use productive lands to build up new houses and cooperate with the National Housing Department, Syarikat Perumahan Negara Bhd (SPNB) and others as a cross-business model to maximise what we have to cut losses and bring back the money.”

The ministry aims to fully settle such debts by 2023.

Zuraida made the statement in response to Chow Kon Yeow (Pakatan Harapan-Tanjong), who wanted to know the allocation spent for the cancelled PR1MA projects to settle debts and liabilities due to buyers and developers to date.

She noted that 94 projects signed by PR1MA with the contractors from 2013 to 2018 were reviewed with PR1MA Members of Corporation’s approval.

“PR1MA had implemented the PR1MA project rationalisation plan, namely postponing or reviewing any project with a development rate of 15% and below,” said Zuraida.

“As a result, PR1MA Members of Corporation has decided to continue 62 projects, have and will cancel 32 projects as of November 2020.”

On Chow’s earlier question on the approach taken by the federal government in ensuring sufficient supply of affordable houses in all states, Zuraida revealed that almost 200,000 RMM units were built since 2018 by the three housing provider agencies involving the state and federal government as well as private developers.

From July 2018 to 30 June 2020, 546,755 affordable houses were at the implementation stage, comprising 55,496 completed units, 163,337 units at construction phase and 327,922 units at the planning phase, she added.

 

Image source from Perbadanan PR1MA Malaysia

 

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