KUAIA LUMPUR: The Government will continue to give licences for projects approved by the states despite the whopping RM29bil surplus of properties in the market.

Deputy Housing and Local government Minister Datuk Dr Peter Chin Fah Kui said that there had been no Cabinet directly so far to halt development projects.

"In terms of projects approved, the ministry will continue to give licenses because the local and state authorities are basically approving the projects "he told reporters after launching the Malaysian Surveyors Conference 2003 here on behalf of Minister Datuk Seri Ong Ka Ting yesterday.

"When a project has been approved, (by the state)and the developer has, obtained the approval, they come to the ministry for the license. If It complies with the licensing conditions, we will approve if unless directed otherwise by the Cabinet. And up till now the Cabinet has not made any decision.", he said.

The National Property Information Center (Napic) disclosed that at the end of last year the combined value of property overhang was RM29.15bil, an increase from RM27bil the previous year.

On June 9, at the 2004 Budget dialogue, Prime Minister Datuk Seri Dr Mahathri Mohamad directed state governments and local authorities not to approve unnecessary projects to avoid imbalanced development the property sector.

His call after he unveiled the RM73bil economic package to spur the slowing economy on May 21. Dr Chin said there were some views that the overhang might not be as great as portrayed by Napic .