It is understood that the Housing and Local Government Ministry propose to table a motion to amend the Housing Development Act at the lower house of parliament later this year in an attempt to reduce the number of abandoned housing development projects.
It is understood that the amendments being proposed include requirements for developers to deposit with the authorities an amount equal to three per cent of the cost of the housing project to be developed, with this sum being retained by the authorities until successful completion of the project by the developer.
Currently Developers are required to put a deposit a sum of RM200, 000 and have a piece of land before a license is issued. It is understood that the proposed new amendment, will allow the authorities to use the deposit in the case of a project failing to attempt to correct the problems and avoid abandoned. It is also believed that the proposed amendment would require that developers complete properties before being allowed to sell them and that failure of developers to abide by the new regulations would leave the developers and their directors open to prosecution under the penal code.