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Number of abandoned schemes reduced
16/05/2004 The Star

KUALA LUMPUR: The Government has reduced the incidence of abandoned housing projects after it required developers to submit half-yearly progress reports, Housing and Local Government minister Datuk Seri Ong Ka Ting said.

He said the Government was also vetting the capability and financial situation of developers before approving new housing projects.

He added that the situation on abandoned housing projects had improved compared to the times during the economic crisis in 1997 and 1998.

Ong told reporters after opening the accounting firm BDO Binder Group’s new office that developers were compelled to submit the reports after an amendment to the Housing Development Act 1966 on Dec 1, 2002.

He said the reports, which was monitored by computers, had allowed the ministry to check and audit the progress of each housing project in the country.

“We will know whether the project is moving or not,” he said.

On abandoned commercial buildings in the city, Ong said the government was concerned over the glut of office space.

“All City Hall councillors are being told to be extra careful before they approve further development projects.

“So of late, compared to two or three years ago, this situation is improving,” he added.

Ong added that because commercial buildings did not come under the purview of his ministry, the people who purchased such as buildings or lots, such as service apartments, could only rely on the sales and purchase agreement to take action against developers.

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