The construction industry encompasses diverse activities such as building, maintaining, and demolishing structures, spanning infrastructure and industrial, commercial, and residential development.

One prominent aspect of this industry is housing development, which involves stages like planning,design, financing, and eventual completion [1]. In Malaysia, the construction sector is a substantial contributor to the economy, fostering socioeconomic growth and offering employment opportunities within various sectors. Despite achieving success in housing provision, the construction industry faces persistent challenges, notably project failures characterized by delays, cost overruns, reduced productivity, and unsafe conditions. Among these challenges, abandoned projects emerge as one of the most severe outcomes. Abandoned housing projects are defined as instances where licensed developers discontinue work for a continuous period of over six months beyond the agreed completion date, as outlined in the Housing Development (Control and Licensing) Enactment of 1978.

Given Malaysia's estimated population of 32.7 million in 2020, representing around 0.42% of the global population, the demand for improved housing, efficient structures, and functional urban infrastructure continues to grow. However, despite the potential positive impact on Malaysian economy, construction activities often encounter issues such as time and cost overruns, as well as compromised quality, jeopardizing the effective utilization of national resources for recovery. Abandoned projects are a critical concern stemming from ailing construction endeavours, affecting various stakeholders within the construction landscape, including developers, contractors, buyers, government entities, and project funders [2]. In some cases, public funds are mobilized to revive select abandoned projects, as evidenced by the government's revival of 32 residential projects in 2017, amounting to approximately RM219.79 million (≈ $52,747,600 USD) from the Malaysian government's coffers [3].

While the challenges of abandoned housing projects are particularly prevalent in Malaysia, it is not unique to the country. Developed nations like China and the United Kingdom also grapple with similar issues [4]. For instance, China has allocated substantial loans to rehabilitate and complete abandoned housing projects, underlining the global scope of the problem. Numerous factors contribute to the issue of project abandonment, including mismanagement by inexperienced developers, inadequate project planning, inaccurate cost estimations, poor cost control, unsuitable designs, and financial difficulties [5].

Other factors include legal disputes, deficient risk assessments, unfavourable government policies, incompetent workforce, lack of proper enforcement and monitoring, and corruption [6]. In essence, project incompletions can result from a combination of internal and external factors, exacerbating the challenge.

In addressing the challenge of abandoned housing projects in Malaysia, the government took several initiatives. In 1990, the government established the Abandoned Housing Project Fund, overseen by Bank Negara. By the year 2000, the Ministry of Urban Wellbeing, Housing and Local Government (MHLG) had allocated RM300 million (≈ $72,000,000 USD) for the rehabilitation of such projects, which was later increased to RM600 million (≈ $144,000,000 USD). As in 2016 reported by Bernama, the government had disbursed RM219.54 million (≈ $52,692,960 USD) from MHLG for the rehabilitation of 32 construction projects. According to MHLG, out of these projects, 190 had been successfully completed, 15 were still in progress, and 48 more were in the planning stage for rehabilitation [7].

In 2004, the former Malaysian Prime Minister officially introduced the Built Then Sell (BTS) construction concept as one of the solutions to address the issue of abandoned housing projects in Malaysia. However, a prior study conducted [6] enhanced the BTS concept by proposing the integration of sustainable elements into the financial model, aiming to benefit all stakeholders involved in housing development. Nonetheless, it was observed that the BTS concept faced challenges and disadvantages for developers, as highlighted [8].

Concurrently, another solution proposed by the government involved amending the Housing Development Act [9]. This amendment sought not only to prevent the occurrence of abandoned housing projects but also to safeguard the interests of homebuyers. The Malaysian government has taken various initiatives to tackle the issue of abandoned housing projects, such as introducing the Build Then Sell (BTS) concept, amending regulatory acts, and implementing public-private partnership (PPP) programs [10].

Despite these efforts, the problem persists and is unsolved. Therefore, this study aims to create a relationship between the factors contributing to the housing abandonment project and a suitable solution of abandoned housing projects in Malaysia, enhancing the construction industry's risk management processes. Moreover, the study contributes to make a significant impact on the construction industry by enhancing its risk management processes. This contribution is vital in addressing and mitigating challenges related to abandoned housing projects, fostering a more sustainable and robust construction environment in Malaysia. The findings and recommendations from this study can potentially inform policymakers, industry practitioners, and stakeholders in devising effective strategies to prevent and manage housing abandonment, thereby promoting the overall stability and success of construction projects in the country.

This section provides a comprehensive review of existing research pertinent to the present study. The examination commences with an overview of housing development in Malaysia, emphasizing the housing types in Malaysia and addresses the current challenges faced by the housing industry. The research then focuses on the most critical issue within the housing sector, namely abandoned housing projects.

2.3. Abandoned Housing Project in Malaysia

The concept of abandoned housing and abandoned housing projects differs significantly. Abandoned housing refers to individual houses left unused, often due to the owner's intention for future investment without immediate occupancy or the developer's failure to sell completed properties due to inadequate marketing strategies. On the other hand, abandoned housing projects pertain to incomplete construction projects or those halted midway.

MHLG defines an abandoned project as one that remains unfinished beyond the delivery date specified in the Sale and Purchase (S&P) agreement, with no significant construction activity taking place at the project site for a continuous period of six (6) months. Additionally, if a winding-up petition is filed in the High Court under Section 218 of the Companies Act 1966, it is also considered an abandoned project. Furthermore, MHLG stipulates that a project will be classified as abandoned if the company responsible is placed under the control of a Receiver and Manager. Project abandonment can also occur when the developer formally communicates their inability to complete the project in writing to the Controller of Housing or when the ministry certifies it as abandoned under Section 11(1)(a) of Act 118 [11-15].

Fig. (1). Housing status in year 2017 Source: (National Housing Department, 2017).

Fig. (2). Abandoned housing project status Source: Abandoned project rehabilitation division, national housing department.

For an overview, the data presented in Fig. (2) shows the status of abandoned housing projects in Peninsular Malaysia spanning from December 2009 to December 2020. This figure includes information on the number of abandoned housing projects that are currently in the planning stage for rehabilitation, new projects that have been classified as abandoned, and completed projects that have been removed from the list of abandoned projects. Despite a decrease in the number of abandoned housing projects observed from 2009 to 2016, this trend experienced a resurgence from 2017 to 2018.

In this study, a quantitative methodology was employed to address the research objectives. Data collection involved an extensive literature review and semi-structured interviews. This approach aligns with the structured nature of the study [16-21]. Descriptive analysis, specifically the Analytical Hierarchy Process (AHP), was utilized to establish relationships between factors and solutions for abandoned housing projects. This statistical approach assists in understanding the impact of various variables on project abandonment.

3.4. Analytical Hierarchy Process (AHP)

AHP recognized as an approach rooted in the evaluation of field experts for making decisions involving multiple criteria, can be effectively employed with a relatively smaller number of participants, as noted [26]. The prioritization process began by constructing a hierarchy that encompassed all factors and their solutions in relation to the overarching goal of mitigating abandoned housing projects. To manage a large number of components or variables effectively, they were organized into clusters to prevent extreme variations [27].

Fig. (3). Hierarchy diagram of goal, factors, and sub-factors of abandoned housing project.

In this study, the pairwise comparison technique has been employed to assess and compare criteria and alternatives, determining the weighted values of each criterion within the Analytical Hierarchy Process (AHP). This method involves judging the ratios for each pair of alternatives in the hierarchy, leading to the derivation of ratio scale measures. The AHP analysis procedure encompasses several steps. Firstly, graphical representations of the problem, presented as a hierarchy diagram, are drawn providing a visual representation of the analytical structure for a comprehensive understanding of the decision-making process. (Fig. 3).

Secondly, the AHP analysis involves the pairwise comparison of each element within the identified sub-factor and alternatives. To achieve this, data collected from a questionnaire survey, supplemented by insights from expert panel interviews, are interpreted using a 9-point scale. The scale for AHP is represented by crisp values, as detailed in Table 2. This scaling process facilitates a systematic comparison of the elements, providing a numerical basis for their relative importance in the decision-making process. Thirdly, the AHP process involves generating pairwise comparison matrices. In these matrices, the diagonal elements always have a value of one (1). The upper triangular matrix is then filled according to the following rules; If the judgment value is on the left side of one (1), the actual judgment value is placed. Otherwise, if the judgment value is on the right side of one (1), the reciprocal value is inserted. This step ensures consistency in the comparison matrices and captures the relative importance of each element in relation to the others within the sub-factors and alternatives (Table 2).

Subsequently, matrix algebra techniques, as in Eqs. (1 to 4), were employed to analyse the variables and identify the optimal solution. This process allowed for systematically identifying the most effective approach among the solutions, considering their relative importance and the goal of addressing abandoned housing projects.

(1)

(2)

(3)

(4)

Based on the results gathered from respondents, several essential strategies emerged to prevent the abandonment of housing projects. Prioritizing financial solutions is the most critical problem faced by the developer that contributes to the abandoned project. The interviewee highlighted the critical importance of addressing financial challenges as the foremost step in preventing housing project abandonment. This finding aligns with previous research and underscores the significance of developers considering appropriate modes of financing to bolster their financial stability [28, 29].

Enhancing financial capability and management practices emerged as crucial strategies supported by other researchers. Given the substantial financial demands of housing development, exploring alternative financing options is vital to prevent project abandonment.

Other than that, effective and proper planning and management emerged as the second top-ranked solution. It was evident that financial planning, beginning from the project's planning stage, is vital to ensure project success. Accurate scheduling, timely commencement of construction work after obtaining planning permission, and comprehensive project budgeting contribute to preventing financial strain and abandonment [30]. Implementing tools such as Building Information Modelling (BIM) and adapting to modern project management software also enhance project efficiency and quality [31].

Besides, implementing Public-Private Partnerships (PPP) for housing projects emerged as a solution to enhance financial factors. Previous studies demonstrated that PPP implementation accelerates construction processes and improves housing quality, with the private sector contributing expertise and risk-sharing. It also mitigates political conflicts [32]. A research [33] found that European countries like the UK, Netherlands, Ireland, and Germany embrace PPP with income reuse. Thus, PPP enhances housing development success, overcoming financial constraints.

Another effective solution identified by the respondents is the adoption of Joint Ventures between landowners and private developers. Joint ventures can lower project costs, expedite project completion through faster approval processes, and enable organizations with limited funding but substantial project management expertise to take on larger projects. To ensure the successful development of housing projects and prevent abandonment, it is crucial to accurately study housing demand and market signals.

Understanding customer preferences for pricing, features, facilities, and residential types is essential for balancing supply and demand. Effective marketing strategies can boost buyer confidence, resulting in improved property sales. Furthermore, a competent project control team is vital for managing construction projects effectively and preventing abandonment. Competent project managers can enhance organization, control, and decision-making throughout the project lifecycle. Other researchers have also observed that the joint venture concept, particularly with landowners, can assist private developers in mitigating risks and reducing investment costs related to land [34]. In Nigeria, private developers have adopted joint ventures with financial institutions as a financing model to successfully complete property development projects [35]. Additionally, a study [36] highlighted that contractors in Texas expanded their areas of expertise and maximized profits without the need to borrow funds for project investments. In conclusion, the findings of this study, supported by previous research, affirm that the joint venture concept holds promise in preventing abandoned housing projects in Malaysia.

Changing the housing delivery system from the “Sell Then Build” (STB) approach to the “Build The Sell” (BTS) system was also suggested as a solution. The BTS system offers advantages such as easier loan approval, reduced stamp duty, and lower interest rates for buyers, but it requires substantial upfront capital. Continuous project management and communication skills training were proposed to improve overall project performance, teamwork, and communication. Effective communication and collaboration among project team members can lead to better project outcomes. Enhancing the effectiveness of the tendering process, strict regulation, and proper systems for tender evaluation can help select the most qualified and competent contractors. This, in turn, reduces the risk of selecting unethical or incompetent contractors, contributing to project success. Additionally, a study conducted by [34-37] suggested that the government could play a role in preventing abandoned housing projects by implementing new policies related to the Built-Then-Sell (BTS) system. Specifically, they proposed that the BTS system should be integrated with any Sell-Then-Build (STB) project for a certain percentage of the total housing built. This approach ensures that developers can still generate profits and cover any budget shortfalls, thereby reducing the likelihood of developers abandoning unprofitable projects. Effective collaboration between stakeholders, including local authorities, developers, consultants, and contractors, is essential for project success. Collaboration enhances teamwork, creativity, productivity, and problem-solving abilities while maintaining a clear division of responsibilities. Stricter law enforcement against unethical developers was suggested as a means to prevent abandoned housing projects. Enhancing the enforcement of existing housing development laws and regulations can help protect homebuyers. Improving government policies and regulations related to statutory approvals and land use planning can streamline the development process and reduce project costs. Standardizing requirements and regulations can further assist developers in completing projects on time and within budget. As affirmed by a study [38], the existing Housing Development Act is deemed rigid, but its effectiveness hinges on the enforcement of the law. Other researchers [39], emphasize that effective law enforcement and an efficient bureaucracy can enhance the ethical standing of individuals. Furthermore, a study [40] claims that the current high housing prices may not justify the losses faced by unlucky buyers, even with an increase in tribunal claims. Consequently, an author [11] recommends that the government strengthen existing laws to provide better protection for unfortunate home buyers.

Finally, respondents highlighted the importance of cooperation between local authorities and project stakeholders to prevent internal conflicts and ensure project success. Effective coordination between local authorities and developers can expedite the approval process and reduce the potential misunderstandings.

Based on the discussion, the multifaceted strategies encompass financial management, efficient planning and project management, technological adoption, public-private partnerships, Joint Ventures, market research, marketing strategies, competent project control, housing delivery system reforms, training initiatives, tendering improvements, collaboration efforts, law enforcement reinforcement, policy enhancements, and local authority cooperation. Implementation of these solutions holds promise in significantly reducing the occurrence of abandoned housing projects, ensuring a more successful and sustainable trajectory for housing development in Malaysia. By integrating these strategies, stakeholders can collectively contribute to a more resilient and thriving housing industry that meets the needs of both developers and homebuyers, thereby fostering a robust and reliable housing landscape in the country.

In conclusion, this study has addressed the multifaceted issue of abandoned housing projects in Malaysia, encompassing various objectives aimed at understanding, analyzing, and proposing effective solutions. The findings reveal critical insights into the factors contributing to abandoned housing projects, spanning financial challenges, project management issues, market signals, and external influences.

The utilization of the Analytical Hierarchy Process (AHP) has allowed for the prioritization of solutions tailored to each contributing factor. Collectively, the proposed solutions offer a strategic roadmap to mitigate abandoned housing projects in Malaysia. By targeting specific contributing factors and involving relevant stakeholders at different levels, these recommendations aim to foster a more resilient, efficient, and sustainable housing development landscape in the country. Implementation of these solutions holds the potential to significantly reduce the occurrence of abandoned housing projects, ensuring the successful and responsible development of housing projects in Malaysia. Overall, the results offer a comprehensive guide for stakeholders, emphasizing targeted strategies that can effectively curb the issue of abandoned housing projects and ensure successful project outcomes.

Every research study has its limitations, and for future studies, researchers may consider exploring the following avenues to further enhance the understanding and solutions for abandoned housing projects:

1. Investigate the long-term impacts of implemented solutions on reducing abandoned housing projects. This longitudinal study can provide insights into the sustainability and effectiveness of the proposed measures over an extended period.

2. Explore the integration of emerging technologies, such as artificial intelligence, big data analytics, and smart infrastructure, in the housing development process. Assess how these technologies can contribute to more efficient project management and risk mitigation.

Overview of the status of abandoned housing projects in Peninsular Malaysia from December 2009 to December 2020, including trends in the number of such projects over the years.

Factors contributing to the issue of project abandonment, both internal and external. These include mismanagement, inadequate planning, financial problems, legal disputes, and government policies.

The Analytic Hierarchy Process (AHP) as an approach for multi-criteria decision-making in the research.