Corporation is confident that together with its partner contractors, it can reach an amicable termination agreement
by AFIQ AZIZ / pic by MUHD AMIN NAHARUL
PR1MA Corp Malaysia is currently negotiating the amount of compensation that would be settled with contractors of 32 1Malaysia Housing Programme’s (PR1MA) projects that have been terminated.
According to a statement by the government’s housing corporation in response to an article by The Malaysian Reserve (TMR), PR1MA has been working closely with its partner contractors to finalise the termination negotiations.
“The compensation is based on the work done and validated by external consultants. We are confident that together with our partner contractors, we can reach an amicable termination agreement,” the statement read.
As for purchasers who are affected by the project terminations, PR1MA stated it would remain committed to the terms and conditions in accordance to their sales and purchase agreements (SPAs).
In a TMR report on Monday, an informed source said the estimated compensation to contractors could reach RM200 million, involving over 30 parcels of land.
The compensation is expected to include the consideration to offset land values owned by the contractors against the compensation amount.
The contractors are also expected to compensate affected buyers who have already signed SPAs with the amount given.
PR1MA stated that only 62 of PR1MA projects will resume, while another 32 will be terminated.
The corporation stated that the findings were made based on the rationalisation exercise, which started in 2019, involving the re-evaluation of the total 94 ongoing projects.
Formed in 2013 under the Prime Minister’s Department, PR1MA’s vision was to develop affordable homes in Malaysia’s key urban centres for the middle-income group.
The agency pledged to deliver one million homes by 2020. However, it only managed to complete 16,682 units or 1.6% of the total houses by 2018, despite receiving over RM8 billion of government injection.
The Cabinet then also decided to absorb PR1MA into the Housing and Local Government Ministry.