SPNB Rehabilitates RM4 Billion Worth Of Houses Since 1990

31/08/2004 Bernama.com

PUTRAJAYA, Aug 31 (Bernama) -- Syarikat Perumahan Negara Berhad (SPNB) has rehabilitated 53,000 low and medium cost units worth RM4 billion since 1990, said its Executive Chairman Datuk Tengku Adnan Tengku Mansor.

He said SPNB was now rehabilitating a number of abandoned housing projects.

Tengku Adnan, who is Member of Parliament for Putrajaya, said he agreed with a suggestion by Rating Agency of Malaysia (RMA) that only completed houses should be offered for sale to the public.

RAM also proposed a 10:90 Formula of a 10 per cent payment first and 90 per cent payment upon completion of the houses to safeguard the interest of buyers.

The system would also eliminate the burden of house buyers who had to service their loan although they had yet to taken possession of their houses, he told reporters, here Tuesday.

Tengku Adnan said the government should review the Housing Act to provide strict guidelines for developers because many of them were not aware of their obligations and this becomes a burden to the people.

"When they want to build houses, they have to look into the market ability of the project because you don't put something high-rise in the rural area to sell at low cost, nobody will buy. In certain area, you can sell high-rise low cost like Kuala Lumpur, Johor Baharu and Penang," he said.

As such, he said Housing and Local Government Ministry should conduct a detailed study to assess the value of housing projects and the area they were being developed, before giving approval.

"I have been informed that Indonesia practises a similar system, the 10:90 formula," he said.

He said SPNB was rehabilitating abandoned medium cost housing project in Klebang, Melaka where buyers were only required to pay booking fees.

-- BERNAMA