Government reviewing law to control housing industry

NST 02/07/1999 By Annie Freeda Cruez

Kuala Langat, Thurs - The Government is reviewing the law in order to rein in developers and control the housing industry following a surge in complaints from consumers.

Housing and Local Government Minister Datuk Dr Ting Chew Peh today said a committee was set up yesterday to review the Housing Developers Act 1966.

He said the Act must control the housing industry and deter developers from resorting to shoddy work and cheating buyers.

"This is the first time we have formed a committee to look into the housing industry. Earlier when problems arose, we just designated an officer to look into the matter."

The time had come for a more proactive measure to tackle the housing industry's problems.

The committee, headed by his deputy Datuk Peter Chin Fah Kui, comprises the ministry's secretary-general, head of enforcement division and heads of the relevant departments dealing with housing.

On the surge in complaints, Ting said there were 1,135 complaints last year or double the average of 500 to 600 complaints a year.

Ting was speaking after performing the ground-breaking ceremony for a public market costing almost RM1 million at Kampung Sungai Jarum in Jenjarum today.

Among the complaints, Ting said, were poor quality houses, damaged homes, late delivery, cheating, misleading advertisements and deliver of houses with no certificates of fitness.

"The review is mainly to plug loopholes, increase existing penalties to safeguard house buyers and resolve all problems in the industry," he added.

He said the ministry would also seek the co-operation of experts proficient in housing laws, professional bodies, Federation of Malaysian Consumer Associations and other associations such as the Housing Developers' Association and the Architects' Association for their views.

"First, the committee will prepare a basic working paper followed by an in-depth discussion with experts, professional bodies and associations to get their views before proceeding with the comprehensive review of the Act."

He said the study would take time to complete and therefore no time limit was given.

The Domestic Trade and Consumer Affairs Ministry was coming up with the Consumer Protection Act which would further safeguard the interests of house buyers.

Asked about the progress point system for housing developers, Ting said the ministry would implement it despite objections from certain quarters.

"There are more than 2,000 housing developers. There must be some measures taken to safeguard house buyers," he said, adding that under the point system developers who had a good track record would be given green licence, those with minor problems yellow licence and those with bad record red licence after they had been barred from developing houses for four to six years.

"We are not victimising or disgracing these developers but the move is to act as a deterrent," he added.

At present, Ting said the ministry had blacklisted 23 housing developers.

In an immediate reaction, Fomca secretary-general N. Marimuthu said today it welcomed the move and hoped it would be invited to sit on the committee.

"The Consumer Protection Bill is going to be tabled soon and thus the Housing Developers Act must be updated to have provisions which are parallel with the former," he said.

He said the Housing Developers Act was outdated as it favoured developers more than consumers.