Rescue developer found for Sibu's stalled Kemuyang Heights

A rescue developer, or "white knight", has been found to take over Kemuyang Heights, a stalled housing project of 66 homes in Sibu, Sarawak, that has dragged on for 11 years. Caretaker Deputy Minister of Public Health, Housing and Local Government Datuk Michael Tiang announced it on 11 November 2026 after chairing the state's technical committee on housing project monitoring (JKTP). The affected buyers fully backed the plan, he said. Neither the rescue developer nor the original developer was named.

The rescue plan

• Progress: the project is about 70% built, but parts must be replanned so the rest can be finished
• Money: the rescue developer will work with the existing developer to settle outstanding financial matters first
• Buyers: the plan needs no extra payment ("top-up") from them, Tiang said
• To finish: roads, electricity and water must be in place and land titles issued to buyers
• Next step: the two developers prepare a rescue plan and submit it to the authorities. The ministry will coordinate, with the Land and Survey Department, Sibu Rural District Council and Sarawak Energy helping with technical requirements and approvals

How it got here

In March 2026 Tiang visited the site and said the developer had repeatedly broken its promises to the government and buyers. He counted 57 affected buyers then, some living in unfinished homes without electricity or water while paying home loans of more than RM1,000 a month. The developer told him it still needed a contractor for the street lighting technical approval needed for the road certificate. Only after that could water, electricity and the occupation permit be applied for.

In September the ministry said it could declare the project abandoned if the developer was unable or unwilling to make real progress. Under Sarawak's Housing Development (Control and Licensing) Ordinance 2013, abandoning a housing project carries a fine of RM250,000 to RM500,000, up to three years in jail, or both, and directors and managers can also be held liable.

Sarawak's problem projects

• Count: 60 private housing projects flagged as problematic as of August 2026, the ministry said in September
• Progress: 46.7% fully or partly completed or resolved; 53.3% still under intervention
• Abandoned: two declared abandoned, including Taman Muhibbah in the Sarikei Division on 16 May 2026, after more than seven years of delay

At the same meeting, a possible rescue developer was also named for Taman Muhibbah in Bintangor, which has about 20 buyers. The takeover cannot go ahead until legal issues are settled in court, Tiang said. In September the ministry said Kejora Dijaya Sdn Bhd had been appointed on 13 July 2026 as the designated developer to revive that project.

Tiang said the work would go on despite his caretaker status, because rising building costs make every delay more expensive.

SCOTT: Buyers should check or find out more about developer's background before paying for a house or property that is still under construction. Do some due diligence or get a lawyer, professional agent to do some work for you.

However, despite all the works you've done, there's a chance that things will still go sideway or out of expectation. So, please don't take property investment with gambling mindset. If the cost of investment will affect your daily life, please do not proceed. Take only the risk within your appetite.