How to check a developer before buying a new launch in Malaysia (2026): TEDUH, HDA, track record and red flags

中文 · Bahasa Melayu · Bahasa Indonesia

By Jason Lim, REN 84424 · IQI Realty · Checked on 9 November 2026

This guide is for buyers from Singapore, Indonesia, India, China, MM2H participants and Malaysians who are about to book a new launch in Johor Bahru or elsewhere in Malaysia. The short answer: before you pay anything, check the developer’s licence and advertising permit on KPKT’s TEDUH portal, make sure your payments will go into the project’s Housing Development Account, look up the company with SSM, and visit at least one project the developer has already finished.

Why checking the developer matters

When you buy a new launch, you pay in stages for a building that does not exist yet. If the developer runs into money, legal or contractor trouble, your home can be delayed for years, and you may already be paying interest on the part of the loan the bank has released.

As of 30 June 2026, the housing ministry (KPKT) recorded 303 sick private housing projects in Peninsular Malaysia, covering 43,288 units, and 100 abandoned projects covering 27,998 units and 14,961 buyers. Most abandoned projects were in Selangor, Kelantan and Terengganu. KPKT reports that 1,726 troubled private projects had been revived as of August 2026, and it aims for no sick or abandoned projects by 2030 (The Star, 1 November 2026; Bernama, 31 July 2026).

KPKT term	What it means	What it means for you
Sick (sakit)	Construction more than 30% behind schedule, or the SPA completion period has expired	Delivery is at real risk; late-delivery damages may build up
Abandoned (terbengkalai)	More serious: long inactivity on site or financial or legal trouble, confirmed by KPKT	Rescue depends on a revival plan; see the section below

Step 1: check the licence and APDL on TEDUH

In Peninsular Malaysia, Johor included, a residential developer must hold a developer licence (lesen pemaju) under the Housing Development (Control and Licensing) Act 1966 (Akta Pemajuan Perumahan (Kawalan dan Pelesenan) 1966, Act 118), plus an advertising and sales permit (permit iklan dan jualan) for each project, usually shown together as the APDL number on adverts and in the sales gallery.

KPKT’s TEDUH portal (Transforming and Empowering Data Usage in Housing), run by the National Housing Department (Jabatan Perumahan Negara, JPN), is where you check them. In September 2026 KPKT again urged buyers to “check before you buy”, saying the portal had passed 45 million visits since 2017 (Bernama, 7 September 2026). It is at teduh.kpkt.gov.my and in a mobile app.

What TEDUH shows	What to look for
Developer licence status	The licence is active and the company name matches the one on your booking form and SPA
APDL (advertising and sales permit)	The permit covers this project and phase and is still valid on the day you book
Project progress	Progress matches what the developer tells you and what you see on site
Delayed, sick or abandoned status	Any of these is a reason to stop and ask questions
Approved selling prices	The price on your booking form is consistent with the approved price for that unit type
Extensions of time (EOT)	An approved EOT can push back your delivery date

Photograph the licence and APDL numbers and dates on the advert, then look up the developer and project on TEDUH and compare. If the numbers are missing, do not match or have expired, do not pay a booking fee. TEDUH also lets you lodge a complaint with JPN. In April 2025 KPKT blacklisted 109 developers for not submitting required reports (Malay Mail, 7 April 2025). My sales gallery and show unit checklist covers what the advert must show, and how I verify projects explains my own routine.

Step 2: know where your money goes (the HDA)

Section 7A of Act 118 requires a licensed developer to open a Housing Development Account (Akaun Pemajuan Perumahan) with a bank or finance company for each project or phase. All purchase money must be paid into it, and money can only come out for purposes the regulations allow. If the developer is wound up, the account money is treated as not part of the developer’s assets.

• What goes in: your payments, your bank’s loan releases and the developer’s construction loans.
• What can come out: mainly certified construction costs, land costs, professional fees, loan repayments and capped admin costs.
• Surplus: the developer can only take out any surplus with the Controller of Housing’s approval, after keeping enough to finish the project plus a 10% contingency.
• Audits: KPKT says it audits these accounts regularly (The Star, 1 November 2026).

For you, the rule is simple: the HDA bank and account number should appear in your SPA and on every progress bill, and every payment after the SPA goes into that account. A request to pay a personal account, or a “new account” sent by message, is a classic scam; confirm with your own lawyer first. See my guides to progressive payments, booking fees and refunds and property scams in JB.

Step 3: check the company with SSM

The Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia, SSM) sells official company information online, including through e-Info. Many projects use a company set up just for that project, so look up both that company and the group behind it.

SSM product	Fee	Why it helps
Company profile	RM10 (RM20 digitally certified)	Directors, shareholders, capital, charges, summary financials
Financial comparison	RM20 for 2 years, up to RM100 for 10 years	Audited figures over several years
Company charges	RM20	Who has lent against the company’s assets
Particulars of directors	RM20 (RM30 certified)	Current directors and those of the past 15 years
Personal involvement	RM50 per category	Other companies a named director is or was involved in

Look for accounts filed on time, no long run of losses, and directors not linked to failed projects. A new project company is normal, but then the group’s record matters more. If the developer or its parent is listed, its reports on Bursa Malaysia’s website show debt and project progress in more detail.

Step 4: check the track record on the ground

Licences tell you a developer is legal. Finished buildings tell you whether it delivers.

1. Delivery dates vs the SPA

Under the statutory SPA forms, vacant possession is due 24 months from the SPA date for landed homes (Schedule G) and 36 months for strata homes (Schedule H), with late-delivery damages (LAD) of 10% a year of the price. Vacant possession must come with the Certificate of Completion and Compliance (CCC). For the developer’s last few projects, ask when the SPAs were signed and when the CCC came, and check TEDUH for extensions of time. See my guides to the CCC and late vacant possession and LAD claims.

2. Visit a completed project

Look at lifts, corridors, car park, cracks, water stains and common facilities, and ask the management office how defects were handled. My guides on checking condo management and latent defects after the DLP list the questions.

3. Tribunal claims, court cases and news

The Tribunal for Homebuyer Claims (Tribunal Tuntutan Pembeli Rumah) hears SPA-based claims of up to RM50,000, usually within 12 months of the CCC or the end of the defect period, and must try to give its award within 60 days of the first hearing (Act 118, sections 16M, 16N and 16Y). I found no public searchable list of tribunal awards (November 2026), so search news and court judgments for the company, group and directors with words like “LAD”, “late” or “abandoned”. One complaint is not a pattern; many are.

4. The land and the site

Ask your lawyer for a search on the master title: owner, bank charges, caveats and restrictions. Landowner joint ventures are common, but landowner disputes have stalled projects before. Then visit the site and look for real work. See my land title search and caveats guide.

Commercial-title projects: check what protection applies

Act 118 covers housing. In August 2025 the housing minister told Parliament that commercial projects such as shop lots and offices fall outside it (Bernama, 18 August 2025), which means no compulsory HDA, no statutory SPA form and no homebuyer tribunal in the same way. KPKT is drafting a Real Property Development Act to replace Act 118 and extend oversight to commercial developments; in July 2026 the minister said it was in the final drafting stage, with no tabling date given (Bernama, 31 July 2026).

Many JB serviced apartments sit on commercial land, and whether a project is sold under Act 118 depends on the project. Ask the developer and your lawyer two direct questions: is the SPA on the statutory Schedule H form, and is there an HDA? My guide to serviced apartments on commercial title covers the running costs side.

Red flags before you book

• No licence or APDL number on the advert, or numbers that do not match TEDUH.
• A company name on the booking form that differs from the licensed developer on TEDUH.
• Payment to a personal account, or any payment outside the SPA schedule and the HDA.
• Pressure to sign the SPA without your own lawyer reading it first.
• Big verbal promises about rental returns, completion dates or extras that are not written into the SPA.
• A delayed or sick status on TEDUH, or an earlier project by the same group with that status.
• No completed project you can visit, and no clear answer about who the main contractor is.
• Accounts not filed with SSM, or years of losses with heavy borrowings.
• A quiet site: little visible work months after the launch.

What happens if a project is abandoned

This is general information, not legal advice; if your project stalls, speak to a lawyer and contact KPKT early.

• It is an offence. Under section 18A of Act 118, a developer that abandons a project commits an offence with a fine of at least RM250,000, up to three years’ jail, or both. “Abandons” covers stopping work continuously for six months or more, or going beyond the SPA completion period.
• KPKT can step in. Under section 11 the minister can direct rectification, appoint an adviser, direct a takeover or certify the project abandoned. A KPKT task force set up in 2023 mediates between developers, buyers and banks.
• Buyers may terminate in some cases. Section 8A lets a buyer end the SPA if work stops for six months or more, with the bank’s written consent and the Controller’s certification; the developer must refund all money paid, without interest, within 30 days. It applies to SPAs made after Act A1415 came into force, and a refund depends on the developer being able to pay.
• Your loan does not pause by itself. Buyers may keep paying interest on the amount the bank has already released while the home sits unfinished (The Star, 1 November 2026). Talk to your bank early.
• Revival takes time. A rescue party must make the remaining work viable at today’s costs. Budget 2027 proposed a full stamp duty exemption on loan and transfer documents between rescue developers or contractors and the original buyers from 1 January 2027 to 31 December 2030, subject to KPKT certification (The Star, 1 November 2026).

KPKT is also studying an option-to-purchase step before the SPA and an “order to build” model to reduce these risks; both were still under study in November 2026.

Extra checks for foreign buyers

• Price floor and consent. Foreigners can generally buy Johor residential property only from RM1 million, with some exceptions in designated zones, and need state consent (New Straits Times, April 2026). Confirm the unit qualifies before booking; see Johor’s foreigner minimum price and quota.
• Booking from abroad. Do the TEDUH and SSM checks online and ask for a live video of the site. My guide to buying JB property without flying in covers signing and paying from overseas.
• Loans. Check that a bank will lend to you on that project before you book; see home loans for foreigners.

For MM2H participants, I coordinate with a MOTAC-licensed MM2H agent on the visa side and handle the property side; approval is decided by the authorities. Start with the MM2H property support page.

Where to look at new launches in JB

• New launch property in Johor Bahru: current launches.
• JB Sentral and Bukit Chagar: near the CIQ and RTS Link.
• Iskandar Puteri: Medini and the Second Link.
• Mount Austin: family area, condo and landed.
• Permas Jaya and Senibong: east-side waterfront.
• Bukit Indah and Gelang Patah: west-side townships.
• New landed launches in JB: terraces to bungalows.

Compare areas on my JB property map, and weigh up new launch vs subsale if delivery risk worries you.

More Johor living guides: Abandoned housing projects · Sales gallery checklist · The SPA explained · Vacant possession and defect checklist · Legal steps of buying in Johor

Frequently asked questions

How do I check if a developer is licensed in Malaysia?

Use KPKT’s TEDUH portal at teduh.kpkt.gov.my or the TEDUH app. It shows the developer licence and advertising and sales permit (APDL) status, project progress, approved selling prices, extensions of time and whether a project is delayed, sick or abandoned.

What is a Housing Development Account (HDA)?

It is a separate bank account a licensed developer must open for each project or phase under section 7A of Act 118. Buyers’ payments go into it and can only be withdrawn for permitted purposes, such as certified construction costs.

How much does an SSM company search cost?

SSM’s company profile costs RM10, or RM20 digitally certified, and a two-year financial comparison costs RM20, before the channel’s service charge and 8% service tax (SSM fee page, checked November 2026).

How many housing projects are abandoned in Malaysia?

KPKT recorded 100 abandoned and 303 sick private housing projects in Peninsular Malaysia as of 30 June 2026, with the most abandoned projects in Selangor, Kelantan and Terengganu (The Star, 1 November 2026).

What can I do if my new launch project is abandoned?

Contact KPKT and a lawyer early. KPKT can direct a rescue, and under section 8A of Act 118 buyers of newer SPAs may terminate after six months of stopped work, with bank consent and the Controller’s certification. Keep talking to your bank about the loan.

Are serviced apartments and shop lots protected by the Housing Development Act?

Commercial projects such as shop lots and offices fall outside Act 118. For serviced apartments it depends on the project, so ask whether the SPA is on the statutory Schedule H form and whether there is an HDA.

Want a developer check before you book?

Send me the project name. I will check it on TEDUH, look at the developer’s completed projects in JB and tell you what to confirm with your lawyer before any money moves. You can also book an appointment to view the gallery and a completed project with me, or a Zoom consultation if you are abroad.

Sources: KPKT / Jabatan Perumahan Negara, TEDUH portal, checked November 2026; Bernama, KPKT urges buyers to check TEDUH before buying, 7 September 2026; Malay Mail, “Housing ministry: Check TEDUH”, 7 September 2026; The Star, “Abandoned projects: No easy fix”, 1 November 2026; Bernama, Real Property Development Act in final drafting stage, 31 July 2026; Bernama, “KPKT mulls amendments to Act 118 to cover problematic commercial projects”, 18 August 2025; The Sun, on the proposed Real Property Development Bill, 20 November 2025; Malay Mail, housing ministry blacklists 109 developers, 7 April 2025; Housing Development (Control and Licensing) Act 1966 (Act 118), sections 7A, 8A, 11, 16M–16Y and 18A, text as amended to Act A1415, checked November 2026; Housing Development (Housing Development Account) Regulations 1991, P.U.(A) 231/1991 as amended, published by the National House Buyers Association, checked November 2026; Suruhanjaya Syarikat Malaysia (SSM), Company Information products and fees, checked November 2026; New Straits Times, “Foreigners hit Johor property resale wall”, 20 April 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 9 November 2026, not legal or financial advice. Laws, fees and project status change; confirm with KPKT, SSM, your bank and your lawyer before you commit.