Laws on service apartments
The Star 8/6/2004

KUALA LUMPUR: The Housing and Local Government Ministry is looking at legislation to protect buyers of service apartments
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Minister Datuk Seri Ong Ka Ting said present laws under the ministry did not govern service apartments, as they were not categorized as residential property.

This was because some developers would rent out the property like hotels and the Housing Developers Act 2002 does not provide legal protection to such apartments, he said.

"I have brought the issue to the Cabinet and when approved, the ministry will be able to monitor these apartments," Ong told reporters at the Parliament lobby yesterday. He said the ministry had voluntarily made some amendments to existing housing laws to include protection for service apartment owners. Ong reminded local and state authorities to be careful when approving projects for service apartments to ensure that the developers had the necessary capital and good track record.

On another matter, he said the ministry had blacklisted 22 developers for various offences under the Act.

"Some of them have been involved in abandoned projects and late delivery of houses following complaints from house buyers," Ong said, without naming the developers.

He said another 29 developers have had their licenses suspended for similar offences. Ong also said developers were required to submit a progressive report on their projects twice in a year, in January and' July. "This is to ensure the developers keep to their schedule as well as keep the ministry informed of the work progress," he added.

When asked if there were any developers who had failed to meet the deadline for their progressive reports, Ong said the ministry has been receiving encouraging response from the developers.