Buyers Of Serviced Apartments Beware, Says Ong

Bernama.com 15/5/2004

KUALA LUMPUR, May 15 (Bernama) - Buyers of serviced apartments should remember that their sole legal protection is their Sales and Purchase Agreement, Housing and Local Government Minister Datuk Seri Ong Ka Ting said Saturday.

Developers of such projects did not require a housing developer's licence from the ministry and were beyond its control, he told a news conference after opening the new office of the accounting group, BDO Binder, here.

Since December 2002, Ong said, it had been compulsory for licensed housing developers to submit Form 7 F to the ministry.

This enabled the ministry to check, audit and supervise the projects, he said. "We monitor by computer and we'll know whether the project is moving on or not. If it stops, we'll know something is wrong."

"We are very careful about the ability and financial situation of the developers, and whether they follow the rules," he said.

House-buyers could count on the ministry's enforcement of the Housing Act and could also turn to the Housing Tribunal for aid, he said.

"But when you buy serviced apartments and commercial buildings, there is no housing developer's licence needed.

"If such projects run into difficulties or are abandoned, you are solely relying on the Sales and Purchase (Agreement) to bring the developer to court," he said.

The minister also said that owners, buyers and government agencies should find a way to revive abandoned housing projects.

"Demolishing them should be a last resort," he added. Earlier, in his speech, Ong noted that the services sector was the largest sector in Malaysia's economy and had enormous potential.

It accounts for about 57 per cent of the country's Gross Domestic Product and is expected to grow at 5.2 per cent this year. Professional and consultancy services such as BDO Binder Malaysia were sub-sectors poised to drive the entire sector and contribute the most to export earnings, he said.

-- BERNAMA