SHAH ALAM, Jan 16 — The state government assures that the cancelled Vestland Bhd project won’t affect the provision of affordable housing, as the land remains under the Selangor State Development Corporation (PKNS).
State executive councillor for housing and culture Datuk Borhan Aman Shah said the cancellation was done by ending the contract via joint agreement between parties involved, before physical works began.
“The land involved in the deal cancellation remains PKNS-owned, and the condition to provide affordable housing on that land remains in force.
“PKNS remains responsible to ensure affordable housing is provided, be it through a reimplemented project or another method, in line with the state government’s policies and plans,” he said in a statement to Media Selangor.
Even though the housing project at the location was delayed, Borhan said the supply of affordable homes in the surrounding area is sufficient.
He added that the state government has enough affordable homes in Setia Alam and Cyberjaya, and the cancelled project won’t affect prospective homeowners’ chances.
“In Setia Alam, 5,490 affordable housing units have been completed, 4,318 units are under construction, and 5,719 units are being planned, for a total of 15,527 units.
“In Cyberjaya, 3,756 units have been completed, 1,929 units are under construction, and 6,453 units are being planned, for a total of 12,138 units,” Borhan said.
Yesterday, local media reported that Vestland won’t be executing three affordable housing projects in Selangor, valued at RM550.69 million, procured in 2022 from Splendid Forte Development Sdn Bhd.
In a note to Bursa Malaysia, Vestland Resources Sdn Bhd and Splendid Forte agreed to end the contract via joint agreement, involving Phases 1 and 2 of the Selangor Cyber Valley project in Dengkil, Sepang, and Sierra Alam in Bukit Raja, Petaling.
The projects were awarded under Selangor’s affordable housing scheme and involve residence, infrastructure, and landscape development.
The Selangor Cyber Valley project has a contract value of RM234.86 million for Phase 1 and RM198.5 million for Phase 2, while the Sierra Alam project is valued at RM117.33 million.
The note, however, did not detail the reason the contract was ended, but said the decision was made in the companies’ interests after considering all factors.
Vestland also said ending the contract is not expected to cause material effect on its income or gross assets for the financial year ending December 31, 2026.
