KUALA LUMPUR, Aug 19 (Bernama) -- The Ministry of Housing and Local Government has tightened the rules on permit issuance to developers to ensure that errant developers face the music if they do not take their housing and development projects seriously.

Its Minister Datuk Seri Ong Ka Ting said these developers would not be given licence to start new housing projects if they did not rectify or resolve their earlier problems.

He said non-delivery of housing projects or delivery with sub-standard products always caused distress to hopeful buyers besides creating negative image for the developers.

Ong said this in his address at the presentation of awards to recipients of The Edge Malaysia Top Property Developers Awards 2004 here Thursday.

"Besides tightening rules and laws, we are also looking at the Housing Developers Act...to see what further things we can do," he told a press conference later.

Despite having amended it in 2001, he said a lot of new elements had been introduced to make the Act even more complete as the Ministry has been getting feedback besides having had to deal with many problematic projects.

These new elements, among others, include the Tribunal for Housebuyers Claims which had served the public well and revisions to the sale and purchase agreements which are fairer to the parties concerned.

At the same time, he said the developers were compelled to submit their six monthly reports to the Ministry and the latter would also ensure that companies wanting to develop projects must put up their costing, have some basic paid-up capital and no bad records.

Ong said those blacklisted companies were already in the Ministry's computer list.

He said the licensing division of the Ministry was very strict now and would not compromise if companies did not do anything to resolve their problems.

"The Ministry is of the view that they should not be in the market to give more problems to future buyers," he said.

When asked on those involved, Ong declined to name the companies but said that many problematic projects were those done before, during or a shorter period after the financial crisis.

However, projects that started in the last two or three years had been strictly regulated and monitored.

Meanwhile, at Thursday's function, the 10 developers honoured were Bandar Raya Developments Bhd, Boustead Properties Bhd, IGB Corporation Bhd, IOI Properties Bhd, Island & Peninsular Bhd, MK Land Bhd, Sime UEP Properties Bhd, SP Setia Bhd, Sunrise Bhd and Sunway City Bhd.

In congratulating the winners, Ong said developers should win the trust and confidence of the buyers by establishing a certain benchmark for projects which stresses on quality standards, quality management system and workmanship.

For too long, he said, the industry has been challenged by a sizeable number of irresponsible members, often affecting its image.

He stressed that issues of improved quality, responsive customer service, timely delivery and maintenance should continue to be on top of the industry's priorities.

-- BERNAMA