The Star  18/08/2002 By Clarence Chua

PETALING JAYA: Low-cost houses should be completed on time to protect buyers from additional costs which could eventually lead to projects being abandoned, said the House Buyers Association. 

Its secretary-general Chang Kim Loong said that due to the cap in the price of low-cost homes, inflation would hijack construction costs and any delay in completion would make houses more expensive to build. 

The increase in cost, he said, would lead to developers abandoning the project when no profits could be derived from it. 

“The Government will then have to inject more taxpayers’ money to revive the project,” he told The Star. 

Chang was commenting on a recent decision by the Housing and Local Government Ministry to inject RM107mil to assist several states to complete 57 outstanding low-cost housing schemes.  

While Chang commended the ministry on its move to assist house buyers, he also urged the ministry to make an audit of the RM74.6mil earlier loaned to the states to ensure transparency and accountability. 

Minister Datuk Seri Ong Ka Ting said escalating costs and fixed selling price were the main reasons behind the delay in the completion of the 57 projects.