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Saturday, May 10, 2008

Building revival

The Star (5/5/08): A total of RM356.2mil has been given out to housing developers to revive abandoned projects since a rehabilitation fund was formed in 1990.

Second Finance Minister Tan Sri Nor Mohamed Yakcop said the funds were used to help financially-troubled housing developers to complete 74 housing projects, involving the construction of 17,730 houses which were earlier abandoned.

Thirty percent of the houses were low-cost units, he told Nasharudin Mat Isa (PAS - Bachok).

Nor Mohamed said the fund was replaced by Syarikat Perumahan Negara Bhd (SPNB) in 1992 but continued to help complete abandoned projects.

He added that the agency had helped to complete 9,208 abandoned projects.

Nor Mohamed said among the major problems faced in the abandoned housing projects was misunderstandings between the developers and land-owners.

"Some developers were also over-optimistic in their evaluation over demand for housing and also the operational costs.

"The Housing and Local Government Ministry has taken several modes of action, such as tightening supervision of housing projects, and giving approval of not more than six months for housing projects to start operations," he added.

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