Housing and Local Government Minister Datuk Seri Ong Ka Ting said the amendment to Section 7(h) would make the issuance of CFOs in the future as "good as done".

Under the section, besides having water and electricity connections in place, developers will be required to obtain the green light from the various technical departments like Fire and Rescue Department, Tenaga Nasional and Indah Water Konsortium before units could be delivered to buyers.

Previously, many buyers ended with units without CFOs when local authorities witheld approvals as the relevant agencies had not given their nod.

Winding-up points raised by MPs debating the Bill, Ong said the challenge to issue the CFOs fast rested with local authorities as they were now duty bound to give the approval within 14 days upon receiving the applications from developers.

Section 7(i) requires developers to notify the ministry of local authorities refusing to accept their CFO applications or deliberately witholding approval.

On views that the easy manner in which licence was issued had "created" irresponsible developers, Ong said the weaknesses had been addressed; developers were now required to place a RM200,000 deposit before a licence could be issued.

"This is to ensure that licences are only given to developers who are serious and have a strong financial standing."

Ong said the move was not made to stifle the housing industry or create obstacles to any parties, especially those with limited financial resources.

The minister said the deposit could be paid through a bank guarantee or by submitting their Housing Development Authority account, showing that RM200,000 had been deposited and a pledge that the sum would not be used without the approval of  the housing controller.

To ensure projects were carried out according to schedule, Ong said developers would also be required to submit a progress report to the ministry in January and June every year.

"This means developers have to ensure their projects are constructed and completed on time. Those who fail to comply with this requirement will be brought to court."

Earlier, Kerk Kim Hock (DAP-Kota Melaka) claimed the Bill was incomplete as it failed to address problems in the construction of commercial projects.

Citing several cases in Malacca and the city, he said many buyers had been cheated by developers using false licence or without any licence.

When chastised by Datuk Dr Jamaluddin Jarjis (BN-Rompin) for making unsubstantiated claims in the House, Kerk retorted: "I am prepared to bring 500 buyers who have paid up for the Malacca project."

He said lawyers who failed to act in protecting the interest of buyers, like running a check on the status of developers, should also be taken to task.