RM1b more to revive stalled projects

01/09/2004 The Star

PUTRAJAYA: The government-backed Syarikat Perumahan Negara Bhd (SPNB) will spend almost RM1bil this year to revive stalled housing projects in the country.

Its executive chairman Datuk Tengku Adnan Tengku Mansor said this was on top of the RM4bil SPNB already spent to take over the construction of 53,000 housing units since 1990.

“This year’s sum will include two more tenders for projects in Labuan and Taman Medan, Selangor, involving some 1,800 housing units and worth RM60mil to RM70mil.

“The Government needs to seriously rethink the granting of licences for developers as many of the projects may not have a ready market. For instance, there are now too many condominium units for sale but the Government is still approving such projects.

“Then, when the developers run into financial difficulties because there were too few buyers, they have to abandon the projects,” he said yesterday.

Tengku Adnan said that before granting developers licences, the Government had to study the marketability of the projects and the financial soundness of the companies