KUALA LUMPUR, Dec 7 — The Housing and Local Government Ministry has paid compensation amounting to RM172 million for cancelled Perbadanan PR1MA Malaysia (PR1MA) projects and aims to fully settle these debts in 2023.

Minister Zuraida Kamaruddin said the compensation paid so far was for pre-development, labour costs, interest on delays and others for 17 of the 32 cancelled projects.

"Other projects are still in negotiation. We managed to reduce about 30 per cent from the claims. For others, we will no longer request allocation from the federal government to manage the debts and future financing.

"We will use productive lands to build up new houses and cooperate with the National Housing Department, Syarikat Perumahan Negara Berhad (SPNB) and others as a cross-business model to maximise what we have to cut losses and bring back the money,” she told the Dewan Rakyat today.

She was replying to a question from Chow Kon Yeow (PH-Tanjong), who wanted to know the allocation spent on the cancelled PR1MA projects to settle all debts and liabilities due to the developers and buyers to date.

Zuraida said 94 projects signed between PR1MA and the contractors from 2013 until 2018 were scrutinised again with the approval of PR1MA Members of Corporation.

"PR1MA had implemented the PR1MA Project Rationalisation Plan, namely postponing or reviewing any project with a development rate of 15 per cent and below.

"As a result, PR1MA Members of Corporation has decided to continue 62 projects, have and will cancel 32 projects as of November 2020,” she said.

Earlier, responding to another question from Chow on the federal government’s approach in ensuring the supply of Affordable Houses (RMM) to all states was sufficient, Zuraida said since 2018, almost 200,000 units of RMM have been or were being built by three housing provider agencies involving the federal and state governments and private developers.

She said from July 2018 until June 30, 2020, 546,755 units of RMM were at the implementation level, comprising 327,922 units at the planning phase, 163,337 units at construction phase and 55,496 completed units. — Bernama