Journal Screenshot

International Journal of Academic Research in Progressive Education and Development

Open Access Journal

ISSN: 2226-6348

What Causes Abandoned Residential Housing Projects in Malaysia? An Insight from Economic and Management Perspectives

Wan Norhayate Wan Daud, Zainol, Fakhrul Anwar, Mumin, Mohd Hasyim

http://dx.doi.org/10.6007/IJARPED/v6-i4/3366

Open access

In Malaysia, the issue and the phenomena of abandoned housing project in the country remained unsolved and become national issue discussed by various parties. The parties involved are blaming each other, the government blamed by the homebuyers due to its failure to enforce the law to developers. On the other hand, the developers blamed the bankers and the local authorities. The local authorities blamed the architect and the building engineers of their failure to submit the report work progress on the ongoing projects. Thus, this research aims to answer the question about the causes of abandoned housing project in Malaysia from economics and management theory perspectives supported by empirical studies by scholars. From the finding, both perspectives; economic theory and management theory revealed that the causes of abandoned residential housing projects in Malaysia can be caused by private developers, housing contractors, the government or authorities, financial institutions, economics crisis, and politics.

Abdullah. (2008). Pengurusan Strategik Organisasi Bukan Perniagaan. Kajian kes Yayasan Terengganu. Unpublished Thesis. Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia.
Abdul Wahab, M. A. (1994). An Overview of the Development Control System in Peninsular Malaysia. The Surveyor, 40-51.
Abidin, N. Z., Yusof, N., Othman, A. A. E. (2012). Enablers and Challenges of a Sustainable Housing Industry in Malaysia. Journal of Construction Innovation: Information, Process, Management, 13, 10-28.
Adam, D., Watkins, C., & White, M. (2005). Planning Public Policy and Property
Market. United Kingdom: Blackwell Publishing.
Affordable Housing. (2014). Retrieved February 6, 2014, from Wikipedia:
http://en.wikipedia.org/wiki/Affordable_housing#India
Agus, R. (1989). In Dimension of Tradition and Development in Malaysia. In Talib, R. & Tan, C. B. (1995). Selangor: Pelandok Publication Sdn. Bhd.
Ahmad. (2005). Malaysia Management Style: Policy, Practice and Human Resource. London: Asean Academic Press.
Aibinu, A. A., Odeyinka, H. A. (2006). Construction Delays and their Causative
Factors in Nigeria. Journal of Construction, Engineering and Management, 132(7), 667-677.
Al-Kharashi & Skitmore. (2009). Causes of Delay in Saudi Arabia Public Sector
Construction Project. Journal of Construction Management and Economics, 27, 1-3.
Alex, N. H. H., Lau, D. H. C., & Ismail, W. K. (2011). Blue Ocean Strategy: A preliminary Literature Review and Research Questions Arising. Australian Journal of Basic and Applied Science, 5(7), 86-91.
Aman & Shiadri. (2008). Causes of Poor Participant of Local Workers in Malaysia
Construction Industry and Strategy for Improvement. Master Thesis, Universiti Teknologi Malaysia, Skudai, Johor, Malaysia.
Aspara, J., Hietman J., Parvinen, P., & Tikkanen, H. (2008) An Exploratory Empirical Verification of Blue Ocean Strategies: Finding from Sales Strategy. Paper presented at 8th International Business Research (IBR) Conference, Dubai, United Arab Emirates.
Aziza, B., Fitts, J., & Kaplan, R. S. (2008). Drive Business Performance Enabling a Culture Of Intelligent Execution. New Jersey: John Wiley & Sons, Inc.
Ball, M., Lizeiri, C., & Macgregor, B. (1998). The Economics of Commercial Property Market. London: Routledge.
Bank Negara Malaysia. (2013). Annual Report. Kuala Lumpur: Bank Negara Malaysia.
Bank Negara Malaysia. (2013) Financial Stability and Payment Report. Kuala Lumpur: Bank Negara Malaysia.
Bank Negara Malaysia. (2009). Annual Report. Kuala Lumpur: Bank Negara Malaysia.
Bramley, Bartlett, W., & Lambert, C. (1995). Planning the Market and Private House Building, London: UCL Press.
Burke, A., Van Stel, A., & Roythunk. (2009). Blue Ocean Versus Competitive Strategy: Theory and Evidence. Rotterdam: Erasmus Research Institute of Management (ERIM), Erasmus University.
Bursa Expected to be Stable amid Positive Sentiment. (2014). New Strait Times, pp. B2.
Chua, K. H., Loh, Y. C. P. K. (1999). Critical Success Factors for Different Project Objectives. Journal of Construction, Engineering and Management, 125(3), 142-150.
Clegg, S., Kornberger, M., Pitsis, T. (2006). Managing and Organizations: An Introduction to Theory and Practice. USA: Sage Publication
Corbin, S., & Strauss, A. (2007). Business Research Method. New York: McGraw- Hill.
Cooper, D. R., & Schindler P. S. (2008). Business Method (10th Ed). New York: McGraw-Hill.
Cordoba, J. R., & Piki, A. (2012). Facilitating Project Management Education through Group as System. International Journal of Project Management, 30, 83-93.
Coy, P., & Gittlesohn, J. (2010, March). Housing: Hope on the Horizon “Cash-rich builders are buying last again, betting on turn in market for new homes”. Bloomberg Business Week, 20.
Dahlan, N. H. (2011). Legal Issue in the Rehabilitation of Abandoned Housing Project of the Liquidated Housing-Developer Companies in Peninsular Malaysia. European Journal of Economic Report, 23(3), 392-406.
Dahlan, N. H. (2008). Abandoned Housing Projects through Legal Perspective. Law Journal of Malaysia. 20(1), 1-71.
Dahlan, N. H. (2007). Abandoned Housing Project in Peninsular Malaysia: Problem and Suggestion. Malaysian Law of Journal, 4.
¬¬¬Dahlan, N. H. (2006). Abandoned Housing Projects in Malaysia: A Legal Perspective. The Malayan Law Journal, 6, 1-21.
De Silva, T. (2012). Ocean of wisdom. China Daily.pp.24.
Department of Statistic Malaysia. (2006). Social Statistic Bulletin. Kuala Lumpur: Percetakan National.
Department of Statistic Malaysia. (2007). Social Statistic Bulletin. Kuala Lumpur: Percetakan National.
Department of Statistic Malaysia. (2009). Social Statistic Bulletin. Kuala Lumpur: Percetakan National.
Dey, I. (2004). Grounded theory. In Seala, C., Gobo, G., Gubrium, J. F. & Suliverman, D. (eds). Qualitative research practice. London: Sage Publication.
Eceless, T., Sayne, S., and Smith, J. (1998). Property and Construction Economic, in: International. London: Thompson Business Press.
Fen, N. L. (2007). Determinant Factors of Implementing Build Then Sell in Malaysia: Housing Developers’ Point of View. USM. Unpublished thesis.
Gray, D. E. (2009). Doing Research in the Real World (2nd Ed). London: Sage Publication.
Gray, C. F., & Larson, E. W. (2008). Project management. New York: McGraw-Hill.
Global property market trend. (2010). The Economist.
Gould, F. E., & Joyce, N. (2003). Construction Project Management. U.S.A: Prentice Hall Publication.
Guy, S., & Henneberry. J. (2002). Conclusions: Interpreting Development in Guy, S. & Henneberry. J. (eds) Development and Developers. London: Blackwell Science.
Hages, J. F., &Harns, P. (1993). Research Method for Business. USA: Lex Publishing.
Hamid, S. (1992). Pertimbangan Biaya Penyambungan Institusi Kewangan bagi Projek Perumahan: Analysis Kajian Kemungkinan. Unpublished thesis, Universiti Teknologi Malaysia, Skudai, Johor, Malaysia.
House Prices Worldwide. (2013). Retrieved February 5, 2014, from Global Property Guide: http://www.globalpropertyguide.com/real-estate-house- prices/M
Hollensen, S. (2013). The Blue Ocean that Disappeared- The Case of Nintendo Wii. Journal of Business Strategy. 34(5), 25-35.
Hussin, A. A., & Omran, A. (2011). Implication of Non-Completion Projects in Malaysia. Bulletin of Engineering.
Ibrahim, F. (2006). Faktor-faktor Kritikal bagi Pemulihan Projek Perumahan Terbengkalai. Unpublished Thesis, Universiti Teknologi Malaysia, Skudai, Johor, Malaysia.
Ismail, M. (2002). Affordable Quality Housing: In Search of Legal Solution. Paper presented at the 9th ERES conference, Glasgow, Scotland.
Jaillon & Poon. (2007). Attainable Construction Aspects of Using Prefabrications in Dense Urban Environment: A Hong Kong Case Study. Journal of Construction Management and Economics, 26, 953-966.
JI, M. (2008). Six Misconception about Blue Ocean Strategy. Boston, USA: INSEAD.
Kabukin D. (2014). Reviewing the Blue Ocean Strategy: Is the Blue Ocean Strategy Valid and Reliable? Unpublished Thesis. University of Twente, Australia.
Kerzner, H. R. (2006). Project Management: A System Approach to Planning, Scheduling & Controlling. New Jersey: John Wiley & Son.
Khalid. (2010). Abandoned Housing Project: Malaysian Experience. Unpublished Phd, Heriot-Watt, Edinburg. Scotland.
Kim, C., Yang, K. H., & Kim, J. (2008). A Strategy for Third Party Logistics System: A Case Analysis Using the Blue Ocean Strategy. Omega, 36, 34-522.
Kim, W. C., & Maubourgne, R. (2011). Fact About BOS. Retrieved on November 25, 2011 from www.blueoceanstrategy.com.
Kim, W. C., & Mauborgne, R. (2005). Blue Ocean Strategy. Boston: Harvard Business School Press.
King, N., & Horrocks, C. (2010). Interview in Qualitative Research. London: Sage Publication.
Kinicki, A., & Williams, B. (2006). Management: A Practical Introduction. U.S.A:
McGraw-Hill.
Kok, S. Y. (1997). The Legal Framework for Promoting Healthy Housing Development and Housing Finance: The Legislative Point of View. Paper presented at the National Housing Convention, Kuala Lumpur, Malaysia.
Kong & Haw, X. (2009). Barriers in the Implementation of Industrialization Building System in Malaysia Construction Industry. Master Thesis.
Krabbben, V. D. (1995). Urban Dynamics: A Real Estate Perspective: An Institutional Analysis of the Production of the Built Environment. Economic Research, Tilburg University.
Lim & Chung, P. (2006). Implementing Strategy for Industrial Building System. Master thesis, Universiti Teknologi Malaysia, Skudai, Johor, Malaysia.
Lim, C. T. (1982). The State of Housing and Property Industry. A paper presented at the National Conference on Housing and Urban Governance on 20-21, July 2000, Selangor, Malaysia.
Lindic, J., Bardaz, M., Kovacic, H. (2012). Higher Growth through the Blue Ocean Strategy: Implications for Economic Policy. Journal of Research Policy, 41, 928-938.
Loi, E. C. K. (2000). The State Housing and Property Industry. presented in the National Conference on Housing and Urban Governance, Selangor, Malaysia.
Malaysia Productivity Corporation. (2013). Productivity Report 2013: Total Factor Productivity (TFP) Growth for Future Direction. Selangor: Malaysia Productivity Corporation.
Malaysia Productivity Corporation. (2013). Productivity Report 2013, The Way Forward: Boosting Productivity. Selangor: Malaysia Productivity Corporation.
Malaysia Productivity Corporation. (2014). Productivity Report 2014: The Construction Sector. Selangor: Malaysia Productivity Corporation.
McConnell, C. R., Bruce, S. L., & Flynn, S. M. (2005). Economic: Principle, Problems and Policies. U.S.A: Mc-Graw Hill International Edition.
Miles & Huberman. (1994). An Expended Sourcebook Qualitative Data Analysis.India: Sage Publication.
Ministry of Finance Malaysia. (2014). Economic Report (2013/2014). Putrajaya: Ministry of Finance Malaysia.
Ministry of Finance Malaysia. (2013). Economic Report (2012/2013): Residential Statistic. Putrajaya: Ministry of Finance Malaysia.
Ministry of Finance Malaysia. (2010). Economic Report (2009/2010). Putrajaya: Ministry of Finance Malaysia.
Ministry of Finance Malaysia. (2010). Residential Property for Fourth Quarter In Terengganu. Putrajaya: Ministry of Finance Malaysia.
Ministry of Housing and Local Government. Abandoned Housing Projects. (2009). Kuala Lumpur: Ministry of Housing and Local Government.
Ministry of Housing and Local Government. (2012). Types of Houses. Kuala Lumpur: Ministry of Housing and Local Government.
Ministry of Work Malaysia. (2005). Annual Report: Legislation and Enforcement. Putrajaya: Ministry of Work Malaysia
Mohamed, Z. A. (2012). Analysis of the Use of Blue Ocean Strategy: Case study Analysis on 14 Different Agencies. Unpublished Thesis, Universiti Putra Malaysia, Serdang Malaysia.
Mumin, H. (2010). Application and Implementation of Modern and Techniques of Constructionin Bungalow House Project: A Case Study in Gong Badak Kuala Terengganu.Unpublished thesis, International Islamic University Malaysia, Gombak, Selangor, Malaysia.
National Housing Buyer Association. (2009). Abandoned, Spilled, Revived Project. Retrieved on July 30, 2012 from http//:www.hba.org.my.
National Home Buyers Association (2009). Retrieved on July 30, 2012 from http//:www.hba.org.my.
National Housing Department. (2013). Laporan Perangkaan Tahunan 2013: Perlesenan Perumahan Swasta. Putrajaya: National Housing Department.
National Housing Department (2004, 2005, 2007, 2009, 2010, 2012, 2013, 2014). National Housing Department Annual Report. Putrajaya, Ministry of Housing and Local Government, Malaysia.
New Strait Times. (2012). Revival of abandoned housing projects.
New Strait Times. (2011). Start Built-then-Sell concept in stage.
New Strait Times. (2011). Abandoning housing project to made a crime.
New Strait Times. (2011). Mahimal housing policy.
New Strait Times. (2006). Endorse dual-system approach to housing delivery.
Oohaksarai, L., Basri, A. N. E., Abu Bakar, A., & Abdul Maulud, K. N. (2009). Erosion and Sediment Control Plans to Minimize Impact of Housing Construction Activities on Water Resources in Malaysia. European Journal of Scientific Research, 33, 461-470.
Omar, I. (1999). The effect of the Planning System on Housing Development: A Study of Behavior in Kuala Lumpur and Johor Bharu, Malaysia. PhD thesis, University of Aberdeen, Scotland.
Othman, K. (1993) Meeting Housing Needs, Kuala Lumpur: ISIS Malaysia.
Padgett, D. (2004). The Qualitative Research Experience. U.K: Thompson Learning.
Peter & Butler. (1973). In Abdullah. (2008). Pengurusan Strategik Organisasi Bukan Perniagaan. Kajian Kes Yayasan Terengganu. Unpublished Thesis. Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia.
Pitta, D., & Pitta, E. (2012). Transforming the Naturea and Scope of New Product Development. Journal of Product and Brand Management, 21(1), 35-46.
Property Market Report. (2011). Retrieved September 17, 2013, from Propertywire: http/ww.Propertywire.com
Property Market Report. (2009). Retrieved September 17, 2013, from Propertywire: http/ww.Propertywire.com
Property Market Report. (2005). Retrieved September 17, 2013, from Propertywire: http/ww.Propertywire.com
Rahman, H. A., Yahya, I. A., Berawi, M. A., &Wah, L. W. (2008). Conceptual Delay Mitigation Model Using a Project Learning Approach in Practice. Journal Construction Management and Economics, 26, 15-27.
Rahmat, Z. (1994). Projek Perumahan Terbengkalai di Malaysia: Masalah Isu Penyelesaiannya. Unpublished Master, Universiti Malaya, Kuala Lumpur, Malaysia.
Rashid, A. S. (2012). The Importance of Planning. Malaysian Business, 76-77.
Richard, L. (2009). Handling Qualitative Data: A Practical Guide. London: Sage Publication.
Ritchie and Lewis, J. (2003). Qualitative Research Practice: A Guide for Social Science Students and Researcher. London: Sage Publication Ltd.
Robbins, S. P., & Judge, T. A. (2007). Organization Behavior. USA; Prentice Hall.
Salleh, A. G., & Yusuf, N. (2006). Residential Satisfaction in Low-Cost Housing in Malaysia. Pulau Pinang: Universiti Sains Malaysia.
Salleh, D., & Khalid, M. S. (2002). Pengurusan Projek Awam. Unpublished thesis, Universiti Utara Malaysia, Sintok, Kedah, Malaysia.
Salleh, G., and Meng, L. L. (1996). Private Sector Low Cost Housing: Lessons from Malaysia. Paper presented at ‘How to House a Nation: The Challenge for the XXIst Century’, Ankara, Turkey. Vol. 1, 234-235.
Sambasivam, M., & Soon, Y. W. (2007). Causes and Effect of Delay in Malaysian Construction Industry. International Journal of Project Management, 25, 517- 526.
Samuels, W. J. (1995). The Present of the Institutional Economics? Cambridge Journal of Economic, 19, 569-590.
Schwants & Wilde. (1976). The Existence of Important Information. Retrieved from: http://www.google.com.my.
Seiler, S., Lent, B., Pinkowska, M., Pinazza, M. (2012). An Integrated Model of Factors Influencing Project Manager’s Motivation Finding from the Swiss Survey. International Journal of Project Management, 30, 60-72.
Shahrokhi, M. (2011). The Global Financial Crises of 2007-2010 and the Future of Capitalism. Global Finance Journal (22): 193-210.
Shachmurove, Y. (2012). Failing Institutions are at the Core of the U.S. Financial Crisis. Paper presented at the International Conference on Economic Institutions as a Condition for Social and Economic Development of Transitional Countries, Kotor, Montenegro.
Sibly, S., Yusuf, N. A., Shafie, M. W. (2011). Enhancing House Buyer’s Protection through Development of Housing Warranty System in Tackling Housing Problems in Malaysia. The International Journal of Organizational Innovation, 4(2).
Simons. (2009). Case Study in Practice. London: Sage Publication.
Silverman, D. (2005). Doing Qualitative Research. London: Sage Publication.
Som, A. (2008). Innovative Human Resource Management and Corporate Performance in the Context of Economic Liberalization in India. The International Journal of HRM, 19(67), 1278-1297.
Spinner, D. (2004). The Flooring Handbook. U.K.: Firefly Books Limited.
Summer, L. (2009). Thought on the Current Recession. Utah: Keynesian Economics Utah Research Foundation.
Tan, T. H. (2011). Sustainability and Housing Provision in Malaysia. Journal of Strategic Innovation and Sustainability, 7(1), 62-71.
Tan, T. H. (2010). Base Lending Rate and Housing Prices: Their Impact on Residential Housing Activities in Malaysia. Journal of Global Business and Economics, 1(1).
Tan, T. H. (2008). Determinant of Homeownership in Malaysia. Habitat International, 32(3), 318-335.
Tan, A. L. (2005). Successful Project Management in Malaysia. Kuala Lumpur: Asia Pacific Media & Publication.
The Star. (2011). Downtrend in Property Loans. p. B8.
Ting, O. K. (2000). A Critical Assessment of the Housing and Property Market Performance- Past, Present & Future. Paper presented in the National Conference on Housing & Urban Governance, Selangor, Malaysia.
Valuation and Property Service Department. (2012). Property Market Status Report 2012: Unsold Under Construction Property. Putrajaya: Ministry of Finance Malaysia.
Vincenzo, F. D., Mascia, D. (2012). Social Capital in Project-Based Organization. Its Role, Structure, and Impact on Project Performance. International Journal of Project Management, 30, 5-14.
Abdillah, W. G. (2003) Study on Buying Pattern of House Buyers in Kuala Terengganu. Unpublished thesis, East London University, London, United Kingdom.
Wang, E., Shen, Z., & Alp, N. (2014). Impact of Equipment Technology on Chinese Construction Labor Productivity: An Active Level Study. Retrieved March 20, 2014 from:
www.aero.ascweb.org
Wilkinson, D., & Birmingham, P. (2003). Using Research Instrument, A Guide for Researcher. London: Routledge Falmer.
Wilson, J. (2010). Essentials of Business Research: A Guide to Doing Your Research Project. London: SAGE Publications
Wong, E. C. (1997). Business Research Method. U.S.A: Richard D. Irwin.
Xu, T., Tiong, R. L. K., Chew, D. A. S., & Smith, N. J. (2005). Development Model for Competitive Construction Industry in the People Republic of China. Journal of Construction Engineering and Management, 131 (7), 844- 852.
Yin, R. K. (2003). Applications of Case Study Research. California: Sage Publications.
Yin, R. K. (2004). Case Study Methods. New York: Cosmos Corporation.
Zairul, M. N., & Ibrahim, R. (2011). Abandoned Housing Projects in Malaysia: Proposal for Promoting the BTS (Build Then Sell) Concept for Malaysian Housing Development. Unpublished Thesis, Universiti Putra Malaysia, Serdang, Selangor, Malaysia.

In-Text Citation: (Daud et al., 2017)
To Cite this Article: Daud, W. N. W., Zainol, F. A., & Mumin, M. H. (2017). What Causes Abandoned Residential Housing Projects in Malaysia? An Insight from Economic and Management Perspectives. International Journal of Academic Research in Progressive Education and Development, 6(4), 60–76.