Developers who abandon projects or fail to settle their disputes with buyers, compelling them to seek the intervention of the Housing Tribunal, have begun feeling the heat of the Housing Developers (Control and Licensing) (Amendment) Act 2002.

Housing and Local Government Minister Datuk Seri Ong Ka Ting said the amended Act provides more protection to house buyers, as it calls for the scrutiny of developers' background and financial records.

Only those with clean records will be granted licences for new projects.

"This will help minimise house buyers' problems," Ong said after opening the Kelana Jaya Member of Parliament's service centre at Bandar Sunway today. "We are also confident that the Act will help reduce the problem of abandoned housing projects in the future."

The Act, formerly the Housing Development Act 1966, was passed on Jan 28, 2002 but only enforced on Dec 1, 2002, partly due to the time taken for the House Buyers' Tribunal Regulations 2002 to be gazetted.

Meanwhile, Ong said the ministry had no plans to impose a "build and sell" system for future development projects as it would be suitable only for cash-rich companies.

"The country's property sector will suffer if the ministry decides to impose the system."