Shareda urges heavier fines over jail time for rogue developers

KOTA KINABALU (April 26): The Sabah Housing and Real Estate Developers Association (Shareda) has proposed the imposition of heavier fines on developers who abandon their projects, instead of focusing solely on jail sentences.

Shareda president Datuk Sr Chua Soon Ping said this when commenting on the recently passed housing bill, which reduced the prison sentence for such developers from five to three years.

Chua clarified that the move was not a reduction, but a rectification aimed at streamlining Sabah’s law with that of Peninsular Malaysia and Sarawak, standardizing the jail term to three years across the regions.

He suggested that rogue developers be fined based on the amount paid by buyers of their housing projects, arguing that imprisonment would make it harder for buyers to recover their money.

“Some of these developers would rather go to prison than repay their buyers, so I do not think imprisonment alone solves the problem,” Chua said.

“Shareda suggests heavy fines be imposed, with the funds collected used to compensate the buyers, including covering any losses incurred over time,” he said after a Memorandum of Understanding (MoU) signing ceremony between Shareda, GreenRE Sdn Bhd, and the Borneo International Centre for Arbitration and Mediation (BICAM) at Bay Suites here on Friday.

Chua noted that this proposal had been forwarded to the Local Government and Housing Ministry last year.

He also pointed out that unforeseen circumstances, such as the Covid-19 pandemic and sweeping tariffs imposed by former U.S. President Donald Trump, have contributed to project abandonments.

During the State Assembly sitting on April 17, the proposal to reduce the prison term drew criticism from several members.

The amendment was part of the Housing Development (Control and Licensing) Enactment (Amendment) Bill 2023 (Amendment) 2025, tabled by Deputy Chief Minister II Datuk Dr Joachim Gunsalam, who is also the Local Government and Housing Minister.

While the overall aim of the amendment — to better protect homebuyers — was widely supported, Clause 4, which proposed the reduced maximum imprisonment, became the focal point of intense debate.

On the MoU signings, Chua said the first MoU with GreenRE Sdn Bhd would allow Shareda members to participate in the GreenRE certification programme, promoting the construction of energy-efficient and environmentally sustainable projects.

“This is crucial for Sabah as our cities and communities continue to expand while ensuring the long-term health of our environment,” he said.

The second MoU, signed with BICAM, aims to provide a more efficient and amicable alternative to resolve disputes in the housing and real estate sector, avoiding the lengthy and costly court process.

Also present at the ceremony were Political Secretary to the Chief Minister Datuk Dr Roland Chia, Shareda deputy president Datuk Johnny Wong Chen Yee, BICAM chairman Tan Sri David Wong Dak Wah, BICAM council member Chin Yuen Fong, Real Estate and Housing Developers’ Association Malaysia (Rehda) president Datuk Ir Ho Hon Sang, and GreenRE Sdn Bhd directors Datuk Muztaza Mohamad and Dato Rick Cheng Wooi Seng.