Strategies on the Investment and Resuscitation of Abandoned Projects: Case Study Selangor & Kuala Lumpur

Abstract

Real estate development plays a crucial societal role by providing housing, yet Malaysia’s property sector has long struggled with abandoned projects, particularly since the Asian Financial Crisis. Such projects have caused financial hardship for buyers—many from lower income groups and civil service—and disrupted related industries including construction, transport, and consultancy. The issue reflects systemic weaknesses in government oversight, particularly in assessing developers’ capacities. To address this, the government created Syarikat Perumahan Negara Berhad (SPNB) to spearhead project resuscitation, while private developers with expertise are encouraged to act as “white knights.” However, high investment risks and complex coordination among stakeholders (developers, buyers, financiers, consultants, and landowners) limit participation. This research examines successful cases of project revival through interviews with reputable developers and analyses of investment strategies. It identifies the key factors influencing developers’ willingness to assume revival roles as part of corporate social responsibility and outlines criteria for assessing project viability using investment models. The study concludes that while Malaysian investors are prepared to engage in abandoned project resuscitation when marketability and opportunity exist, stronger regulations and stricter project viability assessments are needed to prevent future abandonment.