The Langkawi Development Authority (Lada) has failed to achieve satisfactory property development performance from 2018 to 2022, according to the latest report by the Auditor-General. The report highlighted several issues, including incomplete development projects, revenue shortfalls, and weaknesses in land lease management, which could result in land loss.
The report found that out of 19 development concepts planned by Lada, only one has been signed and implemented by the private sector. This delay has impacted both tourists and locals, as real estate development has not provided maximum returns. Lada’s main function is to promote and facilitate tourism, socioeconomics, and infrastructure development in the Langkawi district.
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The report also identified weaknesses in activity management, such as incomplete development projects and the absence of land lease agreements. This has resulted in high rent arrears and weak property management. The report specifically highlighted the leased land to the company responsible for building the St. Regis Langkawi hotel. The audit found that no land lease agreement was signed, resulting in the non-collection of land lease revenue.
In addition to incomplete projects, the report highlighted the delayed demolition and reconstruction project of the Kota Mahsuri Auditorium Building and the Tok Senik Resort Village investment project. The former experienced a 742-day extension, with termination notices issued due to the contractor’s inability to complete the project on time. The latter project faced issues with unregistered shareholding and lease payments.
Another concern raised in the report was the 1Malaysia Restaurant, which ceased operations in 2018 due to continuous losses. The premises have since been vandalized.
Following the Auditor-General’s findings, the Parliamentary Public Accounts Committee (PAC) has summoned the Ministry of Finance to explain Lada’s real estate management. The PAC aims to address these issues and improve Lada’s performance. Lada, established in 1990, is an agency under the Ministry of Finance with the objective of developing and promoting Langkawi Island as an international tourism destination.
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The PAC’s hearing with the Ministry of Finance is scheduled for November 30, and more proceedings are expected to follow throughout the year. The committee aims to address the issues raised in the report and ensure better management of Lada’s real estate development projects in the future.
