Category FAQs Search : Housing Development in Malaysia/Sarawak
Question: Abandoned Housing Projects in Malaysia and the Prospect of DP: An Overview
Answer: Owning a house is a dream that every individual cherishes. In Malaysia, both the banking sector and the government
have expended relentless efforts to ensure Malaysians have access to financing and affordable houses. These efforts
are however being derailed by alarming cases of abandoned housing projects (AHPs) that have affected a substantial
number of house buyers. Several reasons have been cited for the AHPs. The issues of the Islamic banking debt
based home financing products have remained prominent. The literature argues that these products such as BBA and
Tawarruq have embedded features of transferring risks and liabilities to home buyers. This problem becomes acute
in cases of AHPs. Musharakah Mutanaqisah or Diminishing Partnership (DP) is suggested as the superior option for
Islamic home financing schemes. However, there is hardly any work that has investigated the extent to which DP
can provide remedy to address the problem of abandoned housing projects. The present paper adopts content
analysis and it shows that DP has a bright prospect of mitigating the problem of abandoned housing projects. The
paper is concluded with suggestions for future research.
(Source: Pustaka Negeri Sarawak, 07 Jul 2021)
Source Link: https://core.ac.uk/download/pdf/82153454.pdf