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Before we start bashing housing developers for abandoned projects, shoddy workmanship and late delivery etc., a finger of blame should be pointed at the Housing and Local Government Ministry. The previous and current housing minister have not done much to alleviate the plight of housing developers.

In fact, it would be correct to say that the ministry through the Housing Developers (Control and Licencing) (Amendments) Act 2002 has contributed much to the housing developers' failure to complete their projects.

The ministry, instead of acting as a conduit to assist housing developers, has seen it fit to draw up obstacles, making it difficult for the developers to smoothly implement their projects.

The application of a housing developer's licence is not only a time consuming affair but the whole process is couched with red tape and bureaucracy. The housing developer is also required to deposit RM250,000 with the Housing Ministry and another RM250,000 for paid-up capital in the company that is overseeing the venture.

To add to the woes, developers have to folk out another RM3,000 for registration with the ministry (maybe this is used for the ministry's golf tournaments) and another $500 for advertisement permit. In short, the ministry is trying to extract its pound of flesh from the housing developers even before the project takes off the ground.

The ministry doesn't seem to realise that the initial period of any housing project entails a lot of up-front expenditure and for the ministry to impose such a stringent condition of surrendering half a million ringgit before the project commences is certainly a heavy price to pay.

Another area the Housing Ministry should look into is the ruling for developers to build low-cost houses. Twenty years ago, this may have been necessary because of the need to provide housing for the poor and low-income group. This is no longer the situation now.

The peoples' standard of living has improved considerably and the prospect of living in low-cost houses doesn't appeal to them anymore. This has resulted in the present glut of low-cost houses everywhere.

It is about time the Housing Ministry addresses this issue rather than blindly imposing the mandatory 30 percent policy of low-cost houses to be built. There is no rationale to continue implementing a policy which serves no useful purpose, and at the same time contributing to the surplus of low-cost houses.

Lastly, the ruling of setting aside 30 percent of houses and a five percent discount for the bumiputeras should be revoked altogether. Such conditions are vestiges of the past and should no longer be applicable now. Our bumiputera citizens are now affluent and do not need this type of condescending attitude and patronage.

Frivolous conditions imposed will only contribute further hardship to the developer because of the holding cost.

The Housing and Local Government Ministry must take note of all the above developments and address these issues speedily. The longer it delays, the more it would contribute to the woes of the building industry.


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