This was stated by Housing and Local Government Minister Datuk Seri Ong Ka Ting, who said Dr Mahathir viewed the matter seriously and would give the appropriate advice through suitable channels.

Speaking to reporters after opening the Malaysian Property Expo (MAPEX) 2000 in Kuala Lumpur yesterday, he reminded local authorities to adhere to the CFO requirements that refers to only the seven technical factors as stipulated.

He said there were non-technical requirements for the issuing of CFO such as requiring developers to contribute funds to build additional roads and drainage.

Ong said Dr mahathir expressed his concern at today’s Cabinet meeting.

On the amendment of the Housing and developers Act, Ong said its preliminary draft was more or less ready.

“We are fine-turning it and waiting for feedback from the relevant parties to ensure that we will come up with a balance and fair act that covers everybody,” he added.

To a question, Ong said the supply overhang in the commercial property sector could be overcome only through a continued growth in the economy. He said low market absorption and the increase in new supply would likely worsen the lackluster performance of the office, retail and industrial properties.

He also said that the number of unsold residential units dropped 14.2 per cent or fell 2.6 per cent in value term for the period December 1999 to June 2000.

“The overhang in shopping complexes and purpose-built office space is more worrisome, estimated at RM20.01 billion, remaining almost unchanged over the same period,” stressed Ong.

MAPEX 2000 is organized by the real Estate and Housing Developers’ Association (REHDA), the national representative body of property and housing developers.

A total of 67,098 units of properties worth RM11.217 billion is offered for sale during the nationwide held MAPEX 2000 (Nov 8 – Nov 26) Bernama