LAWS OF SARAWAK

ONLINE VERSION OF UPDATED

TEXT OF REPRINT

Chapter 52

HOUSING DEVELOPMENT CORPORATION

ORDINANCE, 2002

Incorporating all amendments up to 31st December, 2018

PREPARED AND PUBLISHED BY

THE COMMISSIONER OF LAW REVISION, SARAWAK
UNDER THE AUTHORITY OF THE REVISION OF LAWS ORDINANCE, 1992
2007
 HOUSING DEVELOPMENT CORPORATION
ORDINANCE, 2002

Date Passed by Dewan Undangan

Negeri ... ... ... ... ... ... 29th October, 2002

Date of Assent ... ... ... ... ... 8th November, 2002

Date of Publication in Gazette 20th November, 2002

 1

LAWS OF SARAWAK

Chapter 52

HOUSING DEVELOPMENT CORPORATION

ORDINANCE, 2002

_______________
ARRANGEMENT OF SECTIONS
_______________

PART I
PRELIMINARY
Section
1. Short title and commencement
2. Interpretation

PART II
ESTABLISHMENT OF THE CORPORATION

3. Establishment and incorporation of the Housing Development Corporation

4. Instrument, etc., to be executed or issued by the Corporation
5. Board of Directors for the Corporation
6. Disqualification from membership of Board of Directors, etc.
7. Proceedings of the Board of Directors
8. Disclosure of interest in contract by member of the Board of Directors
9. Appointment of Secretary

PART III
FUNCTIONS AND RESPONSIBILITIES OF
THE CORPORATION

10. Functions and responsibilities of the Corporation

11. Powers of the Corporation
2 CAP. 52

Section
12. Formation of companies
13. Directions from Minister
14. Duty to furnish Minister with information

PART IV
APPOINTMENT OF OFFICERS AND EMPLOYEES,
THEIR POWERS, FUNCTIONS AND DUTIES

15. Chief Executive Officer

16. Appointment of other officers, employees, agents and consultants
17. Regulations with respect to discipline, etc.
18. Continuation and completion of disciplinary proceedings
19. Imposition of surcharge
20. Protection from personal liability
21. Public servants

PART V
FINANCIAL AND ACCOUNTING PROVISIONS

22. Fund of the Corporation

23. Expenditure and preparation of estimates
24. Power to borrow
25. Grants
26. Bank accounts and application of revenue
27. Investment
28. Annual report
29. Accounts of the Corporation
30. Financial and accounting procedures
 HOUSING DEVEOPMENT CORPORATION 3

PART VI
LAND FOR HOUSING DEVELOPMENT

Section
31. General provisions on land for housing
32. Vesting of land
33. Compulsory acquisition of land
34. Protection of Government
35. Surrender of land
36. Restrictions on dealings
37. Transfer or transmission of house, etc.

PART VII
REPEAL AND TRANSITIONAL PROVISIONS

38. Repeal of the Housing and Development Ordinance, 1971

39. Continuance of orders, directions, etc.
40. Transfer of powers, rights, duties and liabilities
41. Transfer of property
42. Existing contracts, etc.
43. Continuance of litigation
44. Transfer of the Fund
45. Continuance of officers and employees
46. Pending disciplinary proceedings
47. Prevention of anomalies
48. Exemption
49. Rules
4 CAP. 52
 5

LAWS OF SARAWAK

Chapter 52

HOUSING DEVELOPMENT CORPORATION

ORDINANCE, 2002

An Ordinance to establish a Housing Development Corporation

to facilitate the provision of adequate housing accommodation in
Sarawak and for related matters.
[1st January, 2003]
Enacted by the Legislature of Sarawak—

PART I
PRELIMINARY

Short title and commencement

1. This Ordinance may be cited as the Housing Development
Corporation Ordinance, 2002, and shall come into force on the 1st day
of January, 2003.

Interpretation
2.—(1) In this Ordinance—
“appointed date” means the date appointed under section 1 as
the date of commencement of this Ordinance;
“Board” or “Board of Directors” means the Board of
Directors of the Corporation constituted under section 5;
“Chairman” means the Chairman of the Corporation, and
includes a Deputy Chairman appointed under section 5(2)(b);
 “Chief Executive Officer” means the Chief Executive
Officer appointed under section 15, and includes any person
appointed by the Board to temporarily discharge his duties;
“Commission” means the Housing and Development
Commission established under section 3 of the repealed
Ordinance;
“Corporation” means the Housing Development Corporation
established by section 3;
“dealing” shall, subject to section 36, have the same meaning
as assigned to it in the Land Code [Cap. 81 (1958 Ed.)], and
includes a caveat;
“financial institution” means—
(a) a bank or any financial institution licensed
under the Banking and Financial Institutions Act 1989 [Act
372];
(b) an Islamic bank licensed under the Islamic
Banking Act 1983 [Act 276]; or
(c) a licensed offshore bank, licensed under the
Offshore Banking Act 1990 [Act 443],
or any modification or substitution of those Acts for the time
being in force;
“flat” means a horizontal stratum of any building or part
thereof, whether such stratum or part is on one or more levels or
is partially or wholly below the surface of the ground, and
includes a parcel within a building subdivided or intended to be
subdivided under the Strata Titles Ordinance, 1995 [Cap. 18];
“Fund” means the Housing Development Fund established
under section 22(1);
“Government” means the Government of the State of
Sarawak;
 HOUSING DEVEOPMENT CORPORATION 7

“house” means any building, premises or structure used for

living accommodation or human occupation, and includes a flat;
“housing accommodation” shall have the same meaning as
assigned to it in the Housing Development (Control and
Licensing) Ordinance, 2013 [Cap. 69];
“housing developer” shall have the same meaning as
assigned to it in the Housing Development (Control and
Licensing) Ordinance, 2013 [Cap. 69];
[Sub. Cap. A159/2013]

“housing estate” means—

(a) any area developed to provide housing
accommodation, with amenities and facilities for the
enjoyment or convenience of residents or occupiers of
houses within such area;
(b) any area having basic infrastructures, services
and facilities provided by the Corporation for the
development of housing accommodation; and
(c) any area approved by the Government as a site
for re-settlement of persons affected by any project or
scheme initiated by the Government or any federal
authority;

“local authority” means any local authority constituted under

or named in the First Schedule to the Local Authorities
Ordinance, 1996 [Cap. 20];

“member” means any member of the Board of Directors

appointed under section 5(2) and (3), and includes the Chairman,
the Deputy Chairman, a temporary Chairman, and an alternate
member, nominated under section 5(5);

“Minister” means the Minister for the time being charged

with the responsibility for housing in the Government;
 “Registrar” shall have the same meaning as assigned to it in
the Land Code [Cap. 81 (1958 Ed.)];

“repealed Ordinance” means the Housing and Development

Ordinance, 1971 [Ord. No. 17/71];

“Secretary” means the Secretary of the Board of Directors

appointed under section 9(1), and includes any person appointed
by the Board to discharge temporarily the functions of the
Secretary;
“shophouse” means any premises used wholly or partly for
trade, business or commerce, and includes any building used
partly for those purposes and partly as living accommodation;

“State land” shall have the same meaning assigned to that

expression in the Land Code [Cap. 81 (1958 Ed.)].

(2) References in this Ordinance to a flat, house or other living

accommodation shall be construed to include references to the land
appurtenant to such flat, house or other living accommodation.

PART II

ESTABLISHMENT OF THE CORPORATION

Establishment and incorporation of the Housing Development

Corporation

3.—(1) There is established a body which shall be known as

the “Housing Development Corporation” which shall be a body
corporate with perpetual succession and a corporate seal and shall, by
that name, be capable of—
(a) suing and being sued;
(b) entering into contracts, and acquiring, owing, holding,
leasing, dealing or disposing of property, both movable and
immovable; and
(c) doing and suffering such other acts or things as bodies
corporate may lawfully do and suffer.
 HOUSING DEVEOPMENT CORPORATION 9

(2) The Corporation shall have a corporate seal and such seal
may from time to time be broken, changed, altered and made anew as
to the Corporation seems fit, and, until a seal is provided under this
section, a stamp bearing the inscription “Housing Development
Corporation” may be used as the corporate seal.
(3) The Corporation shall, for the purposes of any written law
relating to land, be deemed to be a native.
Instrument, etc., to be executed or issued by the Corporation
4.—(1) All deeds, documents and other instruments requiring
the seal of the Corporation shall be sealed with the corporate seal of
the Corporation in the presence of the Chairman or Deputy Chairman
and the Chief Executive Officer or the Secretary or any other person
authorized by the Corporation in that behalf, who shall sign every
such deed, document or other instrument to which such seal is affixed,
and any deed, document or instrument purporting to be sealed with the
corporate seal and signed as herein provided, shall, until the contrary
is proved, be deemed to have been validly executed by the
Corporation.
(2) Any contract, deed or instrument which, if entered into or
executed by a person not being a body corporate, would not be
required to be under seal, may be entered into or executed on behalf of
the Corporation by any person generally or specifically authorized by
the Board of Directors for that purpose subject to such restriction or
limit as to value or otherwise as may be imposed in such
authorization.

Board of Directors for the Corporation

5.—(1) There shall be a Board of Directors constituted as
provided in this section, which shall be responsible for providing
directions for the general administration and supervision of the affairs,
functions, business and other activities of the Corporation.
 (2) The Board of Directors shall comprise the following:
(a) a Chairman;
(b) a Deputy Chairman who shall be the Permanent
Secretary to the Ministry having responsibility for housing;
(c) not less than three and not more than five other
ordinary members; and
(d) four ex officio members who shall be—
(i) the State Financial Secretary or his nominee;
(ii) the Permanent Secretary to the Ministry having
responsibilities for land or his nominee;
(iii) the Permanent Secretary to the Ministry having
responsibilities for local authorities; and
(iv) the Director of Lands and Surveys or his
nominee.
(3) The Chairman and the ordinary members referred to in
subsection (2)(c) shall be appointed by the Majlis Mesyuarat Kerajaan
Negeri.
(4) The members of the Board of Directors, other than ex
officio members, shall hold office for a term not exceeding three
years, and may be eligible for re-appointment.
(5) A member of the Board, other than the Chairman or
Deputy Chairman or an ex officio member may, with the approval of
the Minister, nominate an alternate member, who in the absence or
incapacity of the member, may attend any meeting of the Board and
shall have all the powers and duties conferred by this Ordinance.
(6) The Majlis Mesyuarat Kerajaan Negeri may, at any time
and without assigning any reason, revoke or terminate the
appointment of any member of the Board other than an ex officio
member.
 HOUSING DEVEOPMENT CORPORATION 11

(7) A member of the Board may resign his position by notice

in writing addressed to the Majlis Mesyuarat Kerajaan Negeri.
(8) Members of the Board may be paid such remuneration,
allowances or granted such benefits or privileges as the Chief Minister
may determine from time to time.

Disqualification from membership of Board of Directors, etc.

6.—(1) A person shall be disqualified from being appointed or
being a member of the Board of Directors—
(a) if he has been convicted by a court of law of—
(i) any offence involving fraud or dishonesty;
(ii) any offence under any law relating to corruption;
or
(iii) any other offence for which he has been
sentenced to imprisonment for a term of not less than six
months and has not received a free pardon;
(b) if he is an undischarged bankrupt; or
(c) if he is of unsound mind or is otherwise incapable of
performing his duties.
(2) The seat of a member other than a Deputy Chairman or an
ex officio member, shall become vacant—
(a) on his death;
(b) if he fails to attend three consecutive meetings of the
Board without the permission in writing of the Minister;
(c) if he is absent from Sarawak without the approval of
the Minister for more than three months;
(d) if he becomes subject to any of the disqualifications
specified in subsection (1);
 (e) on the revocation or termination of his appointment as
a member; or
(f) if he shall resign his seat.
(3) Where any member ceases to be a member by reason of
any of the provisions of this Ordinance, a person may be appointed by
the Majlis Mesyuarat Kerajaan Negeri in his place for the residue of
the term for which such person might have held office if he had not
ceased to be a member.

Proceedings of the Board of Directors

7.—(1) All meetings of the Board of Directors shall be
presided by the Chairman or in his absence, by the Deputy Chairman.
(2) No meetings of the Board of Directors shall be held or
conducted unless a quorum comprising not less than five members,
including the Chairman or Deputy Chairman, is present.
(3) The Board may act or proceed with the discharge of its
functions notwithstanding any vacancy in its membership.

(4) The Board may establish or form any committee,

comprising any of the members or officers or employees of the
Corporation and such other persons as the Board may deem fit, and
may delegate to such committee such functions and powers as the
Board considers fit and proper:

Provided that no delegation hereunder shall preclude the Board

itself from performing at any time any of the functions or powers so
delegated.

(5) Subject to the approval of the Minister, the Board of

Directors may make standing orders to regulate its own procedures or
the procedures of any committee established under subsection (4), and
in particular, the holding and conduct of its meetings, the notice to be
given of such meetings, the proceedings thereat, the keeping of
minutes and the production and inspection thereof by members or
other persons.

Disclosure of interest in contract by member of the Board of

Directors
 HOUSING DEVEOPMENT CORPORATION 13

8. If any member of the Board has any beneficial interest in any

land or building situate in an area comprised in any development or
redevelopment plan or in any other project of the Corporation, or has
any beneficial interest in any company or undertaking with which the
Corporation proposes to enter into any contract, or has interest in any
such contract, he shall disclose to the Board the precise nature and
extent thereof, and this disclosure shall be recorded by the Secretary
in the minutes of the Board, and such member shall take no part in any
deliberation or decision of the Board relating to such plan, project or
contract.

Appointment of Secretary
9.—(1) The Board of Directors shall, with the approval of the
Minister, appoint a Secretary who shall hold office for such period as
the Board may determine and on such terms and conditions as it may
determine.
(2) The Secretary shall keep all minutes and records of
meetings of the Board and any of its committees and shall have
custody of the corporate seal of the Corporation.

(3) The Secretary may attend meetings of the Board, but shall
have no right of voting on any issue, matter or resolution before, or
under consideration, by the Board.

(4) If the Secretary is temporarily absent from Sarawak, or is

temporarily unable to perform his duties by reason of illness or
otherwise, another person may be appointed by the Board to act in the
place of the Secretary during any such period of absence from duty.
 PART III
FUNCTIONS AND RESPONSIBILITIES OF
THE CORPORATION

Functions and responsibilities of the Corporation

10.—(1) The functions and responsibilities of the Corporation
shall be as follows:

(a) to develop, build, erect and complete houses for sale or

sublease to such categories of persons and at such locations in
Sarawak, as may be approved by the Minister;

(b) to develop or provide sites, with adequate

infrastructures, services and facilities, for the building of houses
or housing accommodation by such categories of persons as may
be approved by the Minister;

(c) to build or erect, for sale, sublease or exchange,

shophouses in any housing estates, to cater for the needs and
convenience of residents or persons living or working within such
housing estates;

(d) to execute, carry out or implement, such plans or

schemes for the development of housing estates, prepared
or drawn up by the Government or any other governmental
authority in Malaysia;

(e) to improve, renovate, repair or upgrade, upon such

terms and conditions as the Board may determine, any houses or
flats previously built or constructed by the Corporation or the
Commission, or to improve, upgrade or repair facilities or
amenities in housing estates developed by the Corporation or the
Commission;
 HOUSING DEVEOPMENT CORPORATION 15

(f) to acquire, purchase, sell, sublease, rent or license any

buildings built, owned or acquired by the Corporation at such
price, rent or fees as may be approved by the Board in
consultation with the Minister;

(g) to undertake such studies, surveys, investigations or

research as may be necessary to enable the Corporation to carry
out or discharge any of its functions;

(h) subject to the approval of the Minister, to draw up and

implement schemes to provide loans or other forms of financial
assistance, to purchasers of houses or property built, developed or
owned by the Corporation;

(i) subject to the approval of the Minister, to grant loan or

financial assistance on terms and conditions to be determined by
the Corporation, for the building, repair, renovation,
improvement of houses to be built, or built or situated on such
locality or area as the Minister may determine;

(j) to manage, preserve, repair, renovate or administer any

building or property wholly or partly belonging to or owned by
the Corporation;

(k) to prepare, draw up, or determine standards, quality,

criteria of design, workmanship or engineering works for various
categories of buildings or houses to be built, erected, completed
or acquired by the Corporation;
(l) to make, manufacture or design any materials, tools or
equipment needed for the building or construction of houses or
infrastructure, amenities or facilities in any housing development
undertaken by the Corporation; and
(m) to do all such other matters and things as are necessary
for the exercise or performance of all or any of the functions and
responsibilities of the Corporation.
 (2) In addition to the functions and responsibilities stipulated
in subsection (1), the Corporation may undertake such other functions
as the Majlis Mesyuarat Kerajaan Negeri may, by direction published
in the Gazette, assign.

Powers of the Corporation

11.—(1) The Corporation shall have powers to do all things
necessary or convenient to be done for or in connection with the
performance of its functions and responsibilities.
(2) Without prejudice to the generality of subsection (1), the
powers of the Corporation shall include the power—
(a) to develop, enhance, improve, deal with, sell, sublease,
and to enter into contract, arrangement or scheme for the
development and sale of any assets or property of the
Corporation, movable and immovable, in such manner as the
Board may think expedient;
(b) to engage or undertake in any activity, either alone or
in joint venture with other company, corporation or institution, to
better carry out, discharge or execute the functions or
responsibilities of the Corporation;
(c) to provide technical advice or assistance, including
training and training facilities, for the development or
improvement of skills, technical know-how and knowledge, to
housing developers, building contractors, sub-contractors,
suppliers or the officers and employees of the Corporation;
(cc) to supervise the construction of various categories or
types of housing accommodations as the Minister may determine,
in accordance with the required standards, quality and design;
[Ins. Cap. A159/2013]
(d) to provide services for the management and
maintenance of buildings and, in particular, the management and
maintenance of buildings or flats owned or acquired by the
Corporation;
(e) to grant loans to officers and employees of the
Corporation for any purpose specifically approved by the Board;
 HOUSING DEVEOPMENT CORPORATION 17

(f) subject to section 24(1), to borrow or raise loans or

obtain credit facilities from the State Government or the
Government of Malaysia or any financial institution and to issue
or provide such securities as may be required for the purposes of
raising or obtaining such loans or borrowings;
(g) subject to the Corporation having the requisite licence
or permit, to undertake a scheduled business under the Banking
and Financial Institutions Act 1989 [Act 372];
(h) to provide recreational facilities and promote
recreational activities for, and activities conducive to, the welfare
of officers and employees of the Corporation;
(i) to provide training or educational courses for officers
and employees of the Corporation and to award scholarships or
otherwise pay for such training or courses;
(j) to levy or impose fees or charges for services provided
by the Corporation; and
(k) to do anything incidental to any of its powers.

Formation of companies
12.—(1) The Corporation may, from time to time, with the
written approval of the Minister, incorporate or establish companies
by such name as the Corporation may determine, to carry out and have
the charge, conduct and management, on behalf of the Corporation, of
any project, scheme or enterprise as may be decided by the
Corporation in the discharge of its functions and responsibilities and
the exercise of its powers.
(2) Any company incorporated or established by the
Corporation may be wholly owned by the Corporation or may be a
subsidiary or related or associated company of the Corporation.
Directions from Minister
13.—(1) The Minister may give to the Corporation or its Board
of Directors such directions not inconsistent with this Ordinance
relating to the performance of the Corporation’s functions and the
Corporation shall give full effect to all such directions expeditiously.
(2) The Corporation shall furnish the Minister with such returns,
accounts and other information as he may, from time to time, require.

Duty to furnish Minister with information

14. The Board of Directors shall, upon request by the Minister,
furnish him with such information or document relating to the
activities of the Corporation or the proceedings, decision or action of
the Board, as the Minister may, from time to time, require.

PART IV
APPOINTMENT OF OFFICERS AND EMPLOYEES,
THEIR POWERS, FUNCTIONS AND DUTIES

Chief Executive Officer

15.—(1) The Board of Directors shall, with the approval of the
Minister, on such terms and conditions as it may determine, appoint a
Chief Executive Officer.
(2) Where no appointment of the Chief Executive Officer is
made under subsection (1) or the Chief Executive Officer is absent
from the State or unable, through illness or any other cause, to
discharge his duties, the Deputy Chief Executive Officer or any other
officer of the Corporation shall, under the authority and direction of
the Board, exercise the duties of the Chief Executive Officer, and be
paid such remuneration or allowances as may be determined by the
Board.
 HOUSING DEVEOPMENT CORPORATION 19

(3) The Chief Executive Officer shall be responsible for—

(a) the proper administration and management of the
Corporation in accordance with the policies and direction laid
down by the Board;
(b) the supervision and control over the implementation of
all decisions and policies of the Corporation as may be
determined by the Board;
(c) the general control and supervision of all officers and
employees of the Corporation;
(d) the issue of policy guideline and to provide elucidation
of decisions of the Corporation to officers and employees of the
Corporation; and
(e) the orderly, expeditious and prompt execution of all
programmes, plans, schemes, projects and directives of the
Corporation as directed by the Minister under section 13(1).
(4) The Chief Executive Officer shall also perform such other
duties as the Board may, from time to time, direct.

Appointment of other officers, employees, agents and consultants

16.—(1) Subject to such regulations as may be made under
section 17, the Board may, from time to time, appoint and employ on
such terms and conditions as the Board may think fit such number of
other officers and employees as may be necessary for the Corporation
to discharge or undertake its functions and responsibilities and to
exercise the powers conferred by this Ordinance.
(2) The Board may appoint and employ such consultants and
agents to transact any business or to do any act required to be
transacted or done in the discharge of its functions or for the better
carrying into effect the purposes of this Ordinance.
Regulations with respect to discipline, etc.

17.—(1) The Board may, from time to time, with the approval
of the Majlis Mesyuarat Kerajaan Negeri, make regulations with
respect to the conduct and discipline of officers and employees of the
Corporation.
(2) The regulations made under this section may include
provisions for—
(a) the interdiction with reduction in salary or in other
remuneration; and
(b) the suspension without salary or other remuneration,
of an officer or employee of the Corporation during the pendency of
disciplinary proceedings against him.
(3) The regulations made under this section shall create and
classify the disciplinary offences and provide for such disciplinary
punishments as the Board may deem appropriate, and the punishment
so provided may extend to dismissal or reduction in rank.
(4) The regulations made under this section may, in
prescribing the procedure for disciplinary proceedings, provide for an
opportunity for representations to be made by the person against
whom the disciplinary proceedings are taken before a decision is
arrived at by the Board on the disciplinary charge laid against such
person.

Continuation and completion of disciplinary proceedings

18.—(1) Where on the appointed day, any disciplinary
proceeding is pending or existing against any officer or employee of
the Commission who has become an officer or employee of the
Corporation, such proceedings shall be continued and completed by
the Board under this Ordinance.
 HOUSING DEVEOPMENT CORPORATION 21

(2) An order, ruling or direction made or given by any

committee established by the Board to conduct disciplinary
proceedings shall be treated as an order, ruling or direction of the
Board and have the same force or effect as if it had been made or
given by the Board pursuant to the authority vested in the Board under
this Ordinance.

Imposition of surcharge
19.—(1) If the Board is satisfied that any person who is or was
in the employment of the Corporation—
(a) is or was responsible for any improper payment of
moneys from the Fund or for any payment of such moneys which
is not duly vouched;
(b) is or was responsible for any deficiency in, or for the
destruction of, any moneys, securities, stores or other property of
the Corporation;

(c) being or having been an accounting officer, fails or has

failed to keep proper accounts or records; or

(d) has failed to make any payment, or is or was

responsible for any delay in the payment, of moneys from the
Corporation to any person to whom such payment is due under
any contract, agreement or arrangement entered into between that
person and the Corporation,

and if a satisfactory explanation is not furnished to the Board within a

period specified by the Board, with regard to the failure to collect,
improper payment, payment not duly vouched, deficiency or
destruction, or failure to keep proper accounts or records, or failure to
make payment, or delay in making payment, the Board may surcharge
against the said person a sum not exceeding the amount of any such
amount not collected, such payment, deficiency, or loss or the value of
the property destroyed, as the case may be; and with regard to the
failure to keep proper accounts or records, or the failure to make
payment, or the delay in making payment, the Board may surcharge
against the said person such sum as the Board may think fit.
 (2) The Board shall notify the person surcharged of its
decision made under subsection (1).

(3) The Board may at any time withdraw any surcharge in

respect of which a satisfactory explanation has been received or if it
otherwise appears that no surcharge should have been made, and
notify the person concerned accordingly.

(4) The amount of any surcharge imposed under subsection (1)

and not withdrawn under subsection (3) shall be a debt due to the
Corporation from the person against whom the surcharge is imposed
and may be sued for and recovered in any court at the suit of the
Corporation and may also be recovered by deduction—
(a) from the salary of the person surcharged if the Board
so directs; or
(b) from the pension or any retirement benefits of the
person surcharged if the Board so directs,
by equal monthly instalments not exceeding one-fourth of the total
monthly salary or pension, as the case may be, of the person.

Protection from personal liability

20. No suit or other legal proceeding shall lie personally against
any member of the Board or any officer or employee of the
Corporation or any other person acting under the direction of the
Board for anything which is done in good faith or intended to be done
in the execution or purported execution of this Ordinance.

Public servants
21. All members of the Board and its committees, and all
officers and employees of the Corporation shall be deemed to be
public servants within the meaning of the Penal Code [Act 574].
 HOUSING DEVEOPMENT CORPORATION 23

PART V
FINANCIAL AND ACCOUNTING PROVISIONS

Fund of the Corporation

22.—(1) There shall be established, for the purposes of this
Ordinance, a Fund for the Corporation to be known as “the Housing
Development Fund” to be managed, administered and controlled by
the Board of Directors.

(2) The Fund of the Corporation shall consist of—

(a) all moneys received by the Corporation in the

discharge of its functions and responsibilities;

(b) money transferred from the Housing and Development

Fund established under section 46 of the repealed Ordinance and
any bank account of the Commission;

(c) all moneys received by the Corporation by way of

grants from the Government;
(d) all moneys derived from the disposal, lease or hire of,
or any other dealing with, any property vested in or acquired by
the Corporation;
(e) all moneys derived as income from investment by the
Corporation;
(f) all moneys borrowed by the Corporation under this
Ordinance; and
(g) all other moneys lawfully received by the Corporation.
Expenditure and preparation of estimates
23.—(1) The expenditure of the Corporation up to such amount
as may be authorized by the Majlis Mesyuarat Kerajaan Negeri for
any financial year shall be defrayed out of the Fund.
(2) Before the beginning of each year, the Corporation shall
submit to the Majlis Mesyuarat Kerajaan Negeri an estimate of the
expenditure for the following year in such form and containing such
particulars as the Majlis may direct, and the Majlis shall, before the
beginning of that following year, notify the Corporation through the
Minister of the amount authorized for expenditure generally or of the
amounts authorized for each description of expenditure.
(3) The Corporation may at any time submit to the Majlis
Mesyuarat Kerajaan Negeri a supplementary estimate for any one
financial year as the Majlis may allow.

Power to borrow
24.—(1) The Corporation may, from time to time for the
purposes of this Ordinance, raise loans from the Government or with
the consent of the Majlis Mesyuarat Kerajaan Negeri, from any other
source.
(2) The Corporation shall not provide guarantee or security to
secure the debt or liabilities of any company formed or established
under section 12, or for any other person or party, without the prior
approval of the Majlis Mesyuarat Kerajaan Negeri.

Grants
25. For the purposes of enabling the Corporation to carry out its
functions under this Ordinance, the Majlis Mesyuarat Kerajaan Negeri
may, from time to time, make grants-in-aid to the Corporation of such
sums of money as the Majlis may determine out of moneys to be
provided by the Dewan Undangan Negeri.
 HOUSING DEVEOPMENT CORPORATION 25

Bank accounts and application of revenue

26.—(1) The Corporation shall open and maintain an account or

accounts with such bank or other financial institutions as the Board of
Directors thinks fit; and every such account shall be operated upon as
far as practicable by cheque signed by such person or persons as may,
from time to time, be authorized by the Board.

(2) The moneys of the Corporation shall be applied only in

payment of discharge of the expenses, obligations and liabilities of the
Corporation and in making any payment that the Corporation is
authorized or required to make.

Investment
27. The Corporation may, with the approval of the Minister,
invest any of its funds available for investment in the following
manner:
(a) by depositing in—
(i) Bank Negara Malaysia; or
(ii) any financial institutions;

(b) by investing in bonds, debentures, commercial notes,

money market instruments, certificates of deposits and
promissory notes and bills of exchange within the meaning of the
Bills of Exchange Act 1949 [Act 204];

(c) by investing in accordance with the Trustee Act 1949

[Act 208]:

Provided however, where the Corporation invests in or upon titles

to immovable property in Malaysia in accordance with section 4(1)(c)
of the Trustee Act 1949 [Act 208], such immovable property may or
may not yield any income at the time of such investment.
Annual report
28. The Corporation shall, as soon as possible after the close of
each financial year, submit to the Majlis Mesyuarat Kerajaan Negeri
an annual report on the activities of the Corporation during that
financial year, and the Chief Minister shall present a copy of the
report to the Dewan Undangan Negeri.

Accounts of the Corporation

29.—(1) The Corporation shall keep proper accounts and other

records of its own and shall prepare in respect of each financial year a
statement of its accounts in a form approved by the Majlis Mesyuarat
Kerajaan Negeri.

(2) The accounts of the Corporation shall be audited by the

Auditor-General or by a qualified auditor appointed annually by the
Corporation with the approval of the State Financial Authority, and
the auditor shall make a report on the accounts examined by him.

(3) As soon as the accounts of the Corporation have been

audited in accordance with subsection (2), a copy of the statement of
accounts together with a copy of any report made by the auditor shall
be submitted to the Majlis Mesyuarat Kerajaan Negeri, for its
examination and approval, and thereafter, the Chief Minister shall
present to the Dewan Undangan Negeri a copy of every such
statement and report.

Financial and accounting procedures

30. The Statutory Bodies (Financial and Accounting Procedure)
Ordinance, 1995 [Cap. 15] shall apply to the Corporation.
 HOUSING DEVEOPMENT CORPORATION 27

PART VI
LAND FOR HOUSING DEVELOPMENT

General provisions on land for housing

31.—(1) For the purpose of carrying out its functions and
responsibilities under this Ordinance, the Corporation may—

(a) acquire or purchase land, including land lawfully held

under native customary rights;
(b) build or provide houses belonging to the Corporation in
exchange for land required or suitable for the provision of
housing accommodation or creation of housing estates; and
(c) enter into joint venture with any housing developer for
the development of land for the provision of housing
accommodation.
(2) Notwithstanding subsection (1), where any area or site has
been designated or reserved by the State Planning Authority for
housing accommodation as a condition for approval of subdivision or
development of land under Part X of Land Code [Cap. 81 1958 Ed.]
to a housing developer—
(a) the Corporation may, in lieu of such development by
the housing developer, enter into agreement or arrangement with
the housing developer for the development by the Corporation of
the area or site so designated or reserved, or any alternative area
or site to be approved by the State Planning Authority; and
(b) on payment by the housing developer of such amount
as may be determined by the Minister.
[Sub. Cap. A159/2013]

Vesting of land

32.—(1) The Majlis Mesyuarat Kerajaan Negeri may, subject to

such terms and conditions as it may deem fit to impose, by order
published in the Gazette, vest in the Corporation any State land or
other property as may be considered necessary to enable the
Corporation to carry out its functions and responsibilities under this
Ordinance.

(2) The Registrar shall cause to be issued to the Corporation a

document of title for any land vested in the Corporation pursuant to
subsection (1) and shall stipulate in such document of title the
conditions of such vesting.

Compulsory acquisition of land

33. Where any land, not being State land, is needed for the
purposes of the Corporation to carry out its functions and
responsibilities under this Ordinance, such land may be acquired in
accordance with Part IV of the Land Code [Cap. 81 (1958 Ed.)] as
land required for a public purpose, and any declaration required under
that Code that such land is so needed may be made notwithstanding
that compensation is to be paid out of the Fund established under
section 22.

Protection of Government

34.—(1) Where the Government has granted loans to the

Corporation and until such loans are fully repaid, the Government
shall be deemed to have a beneficial interest over any land registered
in the name of the Corporation, and upon presentation to the Registrar
of a certificate signed by the State Financial Secretary certifying that
the Corporation is indebted to the Government in respect of loans
advanced by the Government to the Corporation, the Registrar shall
cause a caveat to be lodged against any land of the Corporation
specified in such certificate.

(2) Any caveat lodged by the Registrar pursuant to subsection

(1) shall not be removed or withdrawn by the Registrar until and
unless he receives from the State Financial Secretary, a statement
stating that:

(a) the loans stipulated in the certificate referred to in

subsection (1) has been fully repaid; or
 HOUSING DEVEOPMENT CORPORATION 29

(b) he consents to the removal or withdrawal of the caveat.

Surrender of land
35.—(1) The Corporation may, or if so directed by the Majlis
Mesyuarat Kerajaan Negeri shall, surrender to the Government any
land which is no longer required by the Corporation for the purposes
of discharging its functions and responsibilities under this Ordinance.
(2) Where the Corporation is required by the Majlis Mesyuarat
Kerajaan Negeri to surrender any land to the Government, the
Corporation may be paid compensation for any improvements which
the Corporation has made to the land since its vesting in or acquisition
by, the Corporation. Such compensation shall be assessed by a valuer
appointed by the Director of Lands and Surveys.

Restrictions on dealings

36.—(1) In the alienation of land or when issuing title for any

land under the Land Code [Cap. 81 (1958 Ed.)] or subsidiary parcel
within any subdivided building under the Strata Titles Ordinance,
1995 [Cap. 18], there shall be imposed, as special condition of such
title, restrictions or limitation on dealing over the land or subsidiary
parcel or the terms upon which any such dealing may be permitted by
the Corporation.

(2) The Minister may make rules governing dealing of any

land or subsidiary parcel referred to in subsection (1) and the Registrar
shall give full effect and force to such rules, and in regard thereto, the
Registrar shall have authority to lodge a caveat against such land or
subsidiary parcel to prevent any dealing which contravenes such rules
or any restrictions or limitations imposed pursuant to subsection (1).
Transfer or transmission of house, etc.

37.—(1) On the death of the owner of any house or subsidiary

parcel or land within a housing estate which was acquired from the
Corporation, the same may, notwithstanding any restrictions on
dealings under section 36, be transferred or transmitted to—

(a) his spouse; or

(b) any of his children who has the qualification or

eligibility to purchase such property from the corporation:

Provided that on the date of such transfer or transmission, there is

no debt or money lawfully due and owed by the estate of the deceased
owner to the Corporation.
(2) Any transfer or transmission referred to in subsection (1)
shall not be deemed as “dealing” of the house, subsidiary parcel or
land under this Ordinance.
(3) For the purpose of subsection (1), “spouse” shall mean any
person who is lawfully married to the deceased owner at the time of
his demise, and “children” shall include any adopted child or step
child of the deceased owner.

PART VII
REPEAL AND TRANSITIONAL PROVISIONS

Repeal of the Housing and Development Ordinance, 1971

38. On the appointed day—
(a) the Housing and Development Ordinance, 1971 [Ord.
No. 17/71] shall cease to have effect; and
(b) the Housing and Development Commission (in this
Part referred to as “the Commission”) being a body corporate
established under the repealed Ordinance shall likewise cease to
exist.
 HOUSING DEVEOPMENT CORPORATION 31

Continuance of orders, directions, etc.

39. All orders, directions, appointments, notifications,
regulations and rules made under the provisions of the repealed
Ordinance and in force immediately before the appointed day shall,
insofar as they are not inconsistent with the provisions of this
Ordinance, be deemed to have been made under this Ordinance and
shall continue in force until other provisions shall be made under this
Ordinance or until the date upon which they expire.

Transfer of powers, rights, duties and liabilities

40. Subject to this Ordinance, all powers, rights, privileges,
duties, liabilities or obligations which immediately before the
appointed day were those of the Commission shall as from that day
devolve on the Corporation.

Transfer of property

41.—(1) Subject to this Ordinance, all land and any interests in

land immediately before the appointed day vested in the Commission
shall, on that day, vest in the Corporation.

(2) Subject to this Ordinance and to any direction of the

Minister, all property and assets other than land which immediately
before the appointed day were vested in the Commission or in any
person on behalf of the Commission shall on that day vest in the
Corporation.

Existing contracts, etc.

42. Subject to this Ordinance, all deeds, agreements, transfer or
transmission, instruments and working arrangements subsisting
immediately before the appointed day and affecting any of the
property transferred under section 41 or the sale, purchase, acquisition
or other dealing of any house, land or property, shall be of full force
and effect against or in favour of the Corporation and enforceable as
fully and effectually as if, instead of the Commission or any person
acting on behalf of the Commission, the Corporation had been named
therein or had been a party thereto.
Continuance of litigation

43.—(1) Subject to this Ordinance, any proceedings before any

court, arbitrator or tribunal or cause of action pending or existing
immediately before the appointed day by or against the Commission
or any person acting on behalf of the Commission, may be continued
or instituted by or against the Corporation as it might have been by or
against the Commission or such person as if this Ordinance had not
been passed.

(2) Any appeal brought or any leave to appeal applied on or

after the appointed day against a decision given in any legal
proceedings before that day may be brought by or against the
Corporation as it might have been brought by or against the
Commission as if this Ordinance had not been passed.

Transfer of the Fund

44. Subject to this Ordinance, all moneys standing in, and due to
be paid to, the Fund set up under section 46 of the repealed Ordinance
shall on the appointed day be transferred to the Fund.

Continuance of officers and employees

45. Every person who immediately before the appointed day was
employed as an officer or employee of the Commission on that day
shall be deemed to be employed as such officer or employee, as the
case may be, of the Corporation upon the same terms and conditions
of service as those obtaining immediately before the appointed day.

Pending disciplinary proceedings

46. All disciplinary proceedings which, immediately before the
appointed day, were pending against any officer or employee of the
Commission may, on or after that date, be continued against the
officer or employee by the appropriate authority of the Corporation
established by this Ordinance.
 HOUSING DEVEOPMENT CORPORATION 33

Prevention of anomalies
47.—(1) If any difficulty arises with respect to the foregoing
transitional provisions of this Ordinance the Minister may, by order,
make such modifications in those provisions as may appear to him
necessary for preventing anomalies:
Provided that the Minister shall not exercise the powers conferred
by this section after the expiration of two years from the appointed
day.
(2) In this section, “modifications” include amendments,
additions, deletions, substitutions, adaptations, variations, alterations
and non-application of any provision of this Part.

Exemption
48. Except as provided in this Ordinance, the Housing
Development (Control and Licensing) Ordinance, 2013 [Cap. 69]
shall not apply to the Corporation.
[Am. Cap. A159/2013]

Rules
49.—(1) The Board may, with the approval of the Majlis
Mesyuarat Kerajaan Negeri, make rules for the purpose of carrying
out into effect for the provisions of this Ordinance.
(2) In particular and without prejudice to the generality of the
foregoing power, the rules may—
(a) prescribe the qualification and categories of persons
entitled to purchase houses built, or land within housing estates,
developed by the Corporation or the restriction or limitation on
the number or category or type of houses which a person may
purchase from the Corporation;
(b) prescribe minimum standards for size, workmanship,
quality, design and other criteria for housing accommodation
provided or built under this Ordinance;
[Am. Cap. A159/2013]
 (c) provide for standard agreements or other documents to
be entered into by the Corporation and purchasers of its houses or
other property, or for the sublease of such houses or other
property;
(d) regulate the investment of moneys or funds of the
Corporation;
(e) make provision for the promotion or advertisement for
the sale, sublease or disposal of houses, by the Corporation;
(f) regulate the procedure for application for purchase of
houses from the Corporation including prescribing forms for such
application;
(g) prescribe conditions for the granting of financial
assistance by the Corporation for the purchase of its houses and
other property or for the renovation, extension and improvement
of houses of any category of persons or in any particular area or
locality; and
(h) prescribe anything which is authorized or required to
be, or which may be prescribed under this Ordinance.
(3) The Rules made under this section may provide penalties for
the contravention thereof:
Provided that such penalties shall not exceed a fine of five
thousand ringgit or imprisonment of three years or fine and
imprisonment not exceeding those limits.
 [List of Amendments]

HOUSING DEVEOPMENT CORPORATION 35

LAWS OF SARAWAK
Chapter 52
HOUSING DEVELOPMENT CORPORATION
ORDINANCE, 2002
LIST OF AMENDMENTS

Amending Law Short Title In force from

Cap. A159/2013 Housing Development Corporation 1.11.2014

(Amendment) Ordinance, 2013