Significant Factors of Housing Projects Abandonment in Malaysian Construction Industry

Abstract

The construction industry is one of the significant contributors to Malaysia Gross Domestic Product (GDP). However, construction industry considered as challenging and risky industry facing many issues such as project abandonment that leads to negative impacts to the environment, economy, as well as society for instance property degradation, negative externalities in the surrounding area and stifles community growth. Therefore, the objective of this research is to identify the significant factors that contribute to the abandoned housing projects in Malaysia. A quantitative research methodology was conducted in data collection through a well-designed questionnaire which was based on the comprehensive literature review. The questionnaires survey had been distributed to 120 respondents among G7 contractors registered with CIDB within Perak state in Malaysia. The data were analysed by using Statistical Package for Social Science (SPSS) version 26.0. The findings shows that the main factors of abandoned housing projects are developer’s financial and internal problem as well as technical problems at the site. These findings could assist the stakeholders to apply an effective management strategy to mitigate the risks leading to problems associated with abandoned housing projects.