Chor: Government committed to reviving abandoned projects

  • Nation
  • Saturday, 26 Jan 2013

GEORGE TOWN: Some RM65mil has been spent in three years to revive abandoned housing projects in the country, said Housing and Local Government Minister Datuk Seri Chor Chee Heung.

He said the Government understood the suffering of those who had saved hard to own a home, only to be told that the developer could not complete the project.

“We know how bitter the whole experience can be, especially for low- and low-medium-cost homebuyers. That is why reviving such projects is a priority for the Federal Government,” he said.

From 2009 to Dec 31 last year, 178 projects comprising 53,058 units were abandoned in the peninsula.

Most of the projects were in Selangor, Johor, the Federal Territory, Negri Sembilan and Penang, Chor said, adding that 35,395 buyers were affected.

“We have revived 66% of the projects while 29% are in various stages of revival. There are only nine projects left which are in the early stages of planning (to be revived),” he said.

He added that since 2009, the percentage of abandoned projects had decreased but “we are not satisfied yet”.

The Federal Government has put in place measures to address the issue of abandoned projects, including requiring developers to pay 3% of the construction cost as deposit, blacklisting errant developers and bringing them to court.

“In addition, the build and sell' concept will be implemented in 2015,” said Chor at a press conference during a mock key presentation ceremony at Taman Desa Aman in Relau yesterday.

The 20- and 10-storey low-medium-cost flats, comprising 329 units and scheduled for completion in 2003, were abandoned in December 2005 after the developer company wound up.

“More than RM13mil was spent by the Federal Government to revive the project.

“This is the biggest abandoned project we've helped revive,” he said.

“Now, the families concerned can celebrate Chinese New Year in their new homes as the certificate of fitness has already been issued.”

He said another two revived projects in the state Mengkuang Heights in Seberang Prai Tengah and Taman Orkid Indah in Seberang Prai Utara would be completed by the end of the year.

He said that from 2009 to December last year, 14 projects in the state involving 3,715 purchasers were abandoned.

“Of that number, 10 including Taman Desa Aman have been completed.

“The others are in various stages of revival.

“All are slated for completion by the end of this year or next year,” he said.

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