Putrajaya is urged to implement the 'build-then-sell' (BTS) concept in 2015 as it protects house buyers from irresponsible developers.

Selayang MP William Leong pointed out that the implementation for BTS is mandatory as the Hansard for the Senate shows “an agreement in principle” for the concept to be implemented in 2015.

“The present system of Sell then Build (STB) allows irresponsible developers or those with inadequate financing to gamble at the expense of the house purchasers.

“(However), the BTS concept would not affect developers with necessary financing, (instead), it would deter developers who have inadequate funding,” Leong said in a statement yesterday.

He added this concept will protect buyers from bearing the brunt of the losses should the developer's gamble turn sour.

Leong ( left ) also pointed out the government's statement that the BTS implementation has not been decided yet is not reflected in the Hansard.

He added the Minister of Urban Well-Being, Housing and Local government Ahmad Rahman Dahlan, had made a U-turn by betraying the public when he went against the government's promise to implement BTS.

Former Housing Minister Chor Chee Heung had in Feb 2012 said that amendments will be made to the Housing Development (Control and Licensing) Act 1966 in preparation for the mandatory implementation of BTS in 2015.

“The Hansard shows the government has agreed to the BTS concept and the present decision not to implement it amounts to a reversal of decision,” said Leong.

Ahmad Rahman was appointed housing minister, taking over Chor's post after the 13th general election.

Furthermore, in his 2015 Budget speech, Ahmad Rahman had said that he was looking at a South Korean insurance scheme to protect purchasers from developers who abandon housing projects.

“The Korean approach has not worked. The agency itself had to be bailed out in the end by the South Korean government,” Leong pointed out.

Leong added that it is better to have a few responsible and adequately funded developers (with BTS) than to take a risk with the current system and have projects abandoned and buyers suffering losses.

“I urge the government to reconsider its decision and implement the BTS concept,” he said.

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