Act against errant builders

NST Editorial Voice 18/02/2000

It is an oft-heard refrain that leaves many house buyers cheesed off. And some unrepentant developers continue taking things for granted, especially when enforcement of the Housing Developers (Control and Licensing) Act 1966 has not been strict. So, when Housing and Local Government Minister Datuk Ong Ka Ting says he is going to crack the whip on housing developers who fail to inform the Ministry of project progress every six months, house buyers are keeping their fingers crossed that this time there will be more action.

In the past, very few developers had submitted progress reports and no action had been taken against errant ones even though the Act provides for a penalty for breach of the relevant section.

Increasing penalties is not the answer to the woes plaquing the industry. What is needed is for firm action against those who renege on the terms and conditions of their contract, action that has to be taken without fear or favour.

The Minister has said he feels the Act protects developers more than house buyers and that a revamp of the Act, last reviewed 10 years ago, will balance the interest of developers and buyers.

The litany of woes besetting the industry is legion, ranging from shoddy workmanship and damaged houses to late delivery, alleged cheating, misleading advertisements and delivery of houses with no certificate of fitness.

The changes should not just plug loopholes in the Act but must be comprehensive inform and substance if they are to be effective.

The surge in complaints against developers doubled last year compared to the year before. The authorities then had said proactive measures would be taken to tackle the industry's problems.

The committee undertaking the revamp of the Act must also be transparent and accountable, reviewing existing regulations critically for it to be effective.

House buyers have often bemoaned that if the authorities are not in a position to help them, who can?

That said, the best regulations will have no effect if the attitude towards enforcement is lackadaisical and the interest of house buyers is not safequarded.

Besides giving more bite to the Act, the authorities should look into not just blacklisting companies found to have defaulted on their terms but bringing to book the individuals involved.

If these defaulters are not reined in, they can easily form another company and carry on their unscrupulous ways. We do not need another saga of abandoned housing projects to remind us of unrepentant or incompetent people who jump on the property and construction bandwagon for a quick buck when the going is good.

As at July last year, the Ministry had blacklisted 23 housing developers. There are more than 2,000 builders in the country.

As the Minister says, the Housing Developers' Act, when amended, need not result in restrictions on the progress of developers.

In fact, if implemented efficiently, the legislation will enhance the credibility of both the authorities and developers in the eyes of the public.

Let us hope. for everyone's sake, that housing woes will be a thing of the past when the amendments come into force. The property market being the bell-wether of the economy., it is high time changes to the industry are made to keep pace with the times through dynamic and progressive rules and regulations.