Revival of abandoned projects
21/04/2002 NSUNT

SEREMBAN, Sat. - The Government has directed Syarikat Perumahan Negara Berhad (SPNB) to revive some 70 of 514 housing projects abandoned by developers during the economic slowdown of 1997.

Wholly-owned by the Finance Ministry, the company, incorporated in May, 2001, had initially been allocated a total of RM1 billion for the purpose, said its assistant general manager (rehabilitation project) Mohd Amin Mohd Salleh.

"We have so far received RM300 million to start some of the projects which will be revived in stages. We will ask for additional allocations as and when the need arises."

Most developers had completed between 20 and 65 per cent of their units when they encountered financial difficulties.

The total number of affected units in the 70 projects is 26,510, comprising mainly low-cost, low-medium and shop houses, with the total value standing at RM3:23 billion.

Mohd Amin said this after witnessing the signing of agreements between the company and some 127 housebuyers of Taman Seri Bayu, Ampangan, in Wisma Negri.

Taman Seri Bayu is one of six abandoned projects, involving some 3,100 units.

Mohd Amin said the company had so far succeeded in reviving more than 10 projects, including those in Semenyih in Selangor, Gambang in Pahang and in Negri Sembilan.

It hoped to revive 20 more projects by the end of the year and the remainder by the end of next year. Most of the abandoned units were located in Selangor and Pahang.

He said the company did not face problems in reviving affected projects in Kelantan and Terengganu due to cooperation from the respective district offices.