News: Poor Management Led To Delays In The Hand-Over Of Rent-To-Own Homes

Jul 15, 2020

While the People’s Housing Project (PPR) rent-to-own (RTO) units were completed on time, the occupancy process for such homes were delayed by up to 40 months because of poor management.

The Auditor-General’s Report 2018 Series 3 showed that it took up to 866 days for the Housing and Local Government Ministry (KPKT) to hand over the completed projects to the National Housing Department (JPN), reported Bernama.

Delays in the selection process of tenants and the absence of standard operating procedures (SOPs) on the handing-over process prevented target groups from enjoying the programme’s benefits.

The RTO scheme aims to provide homes to the low-income group and squatters.

Here’s What You Need To Know About Malaysia’s Rent-To-Own Scheme

“A customer satisfaction survey conducted by the Audit Department also found that tenants of the PPR units were not quite satisfied with their residences and facilities, especially involving building quality, the process of filing damage complaints, as well as repairs for defects reported,” said the report, as quoted by Bernama.

The findings were collated from the audit of five RTOs across eight PPR projects in Port Dickson, Taman Siliau Jaya, Negeri Sembilan; Ulu Bernam, Taman Danau, Selangor; Tok Suboh, Bukit Tengah, Penang; and Kota Bharu, Gua Musang, Kelantan from August 2016 to December 2018.

Other weaknesses in the management of the RTO programme included work quality, contract administration, collection management and building maintenance, noted the Auditor-General’s report.

With this, the report called on the Ministry of Finance, JPN and KPKT to establish a mechanism to expedite tenant selection and tenant list confirmation process.

It also urged KPKT to monitor contract administration and JPN to set up a systematic and effective mechanism to monitor the collection of deposits, arrears and revenues.

To avoid poor work quality, the ministry should conduct close supervision on the project’s work specifications and building designs, added the report.


Check out these latest project reviews today! Or read our helpful Guides to learn all about the various property buying, selling and renting tips!

agent image
agency logo
Samson Kuek
Senior Team leader
REN: -
Vestcom Realty
(+60) 17-2523351