The HGS will probably result in a big increase in cases of abandoned housing projects.
THE first question the Government needs to face is why does abandonment of housing projects take place? The root cause is the lack of and lax in enfocement of existing laws.
The National House Buyers Association (HBA) is deeply concerned that the Government proposes to set up a Housing Guarantee Corporation (HGS) purportedly to protect buyers and housing developers in the event of abandonment of housing projects by developers. What is more worrying is that the loss caused by abandonment is to be incurred by the Government. The Government will hold 70% equity in the HGS while the balance is held by private funds i.e. Rehda and government-linked agencies such as the Employees Provident Fund (EPF) and Tabung Haji.
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