Malaysia - COVID-19: Issues Faced By Developers Under The Housing Development (Control And Licensing) Act 1966.

Legal News & Analysis - Asia Pacific - Malaysia - Dispute Resolution

24 April 2020

 

Introduction
 

With development projects in Malaysia halted since 18 March 2020 due to the Movement Control Order (“MCO”) and the housing development industry not considered as an essential service industry, developers are unable to carry out any construction works until the MCO is lifted. As such, developers may be facing issues in relation to agreements they have entered into with purchasers. Completion dates may be affected, developers may be unable to continue or commence construction, certify completion of stages of construction, or carry out repairs of defects.
 
This article will discuss issues relating to whether a purchaser under Schedules H or G of the Housing Development Act 1966 would be entitled to Liquidated Assessment Damage in the event that the developer is unable to complete the property within the stipulated time to deliver vacant possession, and whether the time period under the Defect Liability Period continues to run during the MCO.

 

The full article can be found from Zicolaw's site here.

 

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For more information, please contact:

 

Neo Chi Chyn, ZICO IP

chi.chyn.neo@zicolaw.com