Ong: Builders still need to overcome build-and-sell hurdles

Sunday Star 23/05/2004 BY CELESTE FONG

KUALA LUMPUR: The Prime Minister's call for developers to adopt the build-and-sell concept is a good proposal which must be looked into before it is carried out in stages, said Housing and Local Government Minister Datuk Seri Ong Ka Ting.

He said while the Government was encouraging the build-and-sell concept, most developers were at present not able to carry it out.

He said the implementation of the build-and-sell concept would not only have an impact on the overall economy but also the property industry.

“Build-and-sell is a good concept. But the housing industry in the country has been selling as they build and this has become like a culture or practice.”

“The Government will adopt the concept in time to come and study the best way to implement this,'' he said.

He was commenting on the report that the Prime Minister Datuk Seri Abdullah Ahmad Badawi was calling housing developers to adopt the build-and-sell concept to protect housebuyers.

“We'll have to examine its impact. Most developers do not have such funds to do it now.

“This will either slow down the housing projects or developers will discontinue them if they do not have sufficient funds,'' he told reporters yesterday after the closing parade of the Territorial Army's Rejimen 515 at Tunku Abdul Rahman College here. The ceremony marked the graduation of soldiers from a one-month training course.

Many developed countries were adopting the build-and-sell concept, he said, adding that an absolute switch to it would be a big shift in mindset for Malaysia.

“This will take a longer time for us to implement and we need a long term plan for this,” he added.

Ong said the Government would decide the timeframe for developers to prepare themselves.

He said developers had earlier exploited weaknesses in the Housing Development Act but the amendments made in 2002 had closed the loopholes.

The amendments now encourage developers to build and then sell their products, he said.

The Government had also offered developers incentives to adopt the new practice, he said, citing the advertising permit (AP) exemption as an example.

Build-and-sell developers need not apply for APs, saving them money on advertising, he said.

To a question, Ong said he was aware that the Real Estate and Housing Developers' Association was unhappy with the ministry for strengthening the Act but said it was the Government's duty to protect the buyers' interests.

On the participation of Chinese recruits in the Territorial Army, Ong said he was glad to see there were 90 Chinese volunteers, all from Tunku Abdul Rahman College, taking part in the training.

Ong said there were 40,000 Territorial Army soldiers in the country and only 5% of them or 2,000 were Chinese.

He said the number of recruits had risen from 45 in the last batch to 104 this time, accounting for a 135% increase.

Commending the college for encouraging its students to take part in the training, he said he hoped other tertiary institutions would also do the same.

“The one-month intensive training for the recruits will motivate them. Besides learning patriotism, discipline and other positive attitude, they are also ready to defend the country if the need arises,” said Ong.