Special incentives for builders who revive abandoned projects

The Star 09/10/2001 By R.S.N Murali

SPECIAL incentives will be given to developers interested in reviving abandoned development projects in Negri Sembilan, said State Local Government and Housing Committee chairman Datuk Dr Yeow Chai Thiam.

Without disclosing details, he said the move would encourage developers to revive such projects, especially those located in Seremban.

''Most of these projects are between 55% to 80% completed. Interested developers can continue from where construction was abandoned,'' he said after a meeting with low-cost housing developers in Seremban.

Ong said the abandoned projects which the state government hoped to revive were the hotel and office blocks at Kemayan Square, a multi-storey building in Jalan Datuk Bandar Tunggal and a hotel in Jalan Tuanku Antah.

Construction work at the Terminal One office tower is also expected to resume soon.

Dr Yeow said the state government had pledged to provide any form of assistance to developers, including looking for anchor tenants for them when the projects were completed.

The projects were abandoned during the economic slowdown in 1997 and since then, many developers were interested to develop the projects but unable to do so due to funding problems, he said.

On abandoned housing projects in the state, he said the state government had asked for a full report on it from the state’s Housing Unit.

''The report will help us to formulate a scheme to help the affected housebuyers,'' he added.

He said many financial institutions were charging interest for progress payments made to developers although the projects were not completed.

This, he said, was unfair to buyers and financial institutions should convert the loans into a term-loan to enable the buyers to start paying their monthly instalments.