KUCHING: Those involved in the housing industry must have the financial resources or ‘financial muscle’ to develop housing projects.
This is to safeguard the interest of developers and prevent them abusing buyers, said Minister of Housing Datuk Amar Abang Johari Tun Openg.
“With the new Housing Ordinance that was introduced in 2014 during the last State Legislative Assembly sitting, the government increased the paid-up capital of developers to RM100,000 if they want to build less than 10 houses,” he told a press conference after closing the Ministry of Housing (MOH)-SHEDA Awareness seminar here yesterday.
“The provision in the new law is to keep us abreast with the latest development in the housing industry not only in terms of construction but also to protect the developers and the buyers,” said Abang Johari.
He pointed out the ordinance also sought to tell developers wanting to build more than 10 units that they must have paid-up capital and maximum deposit of RM500,000 with the Ministry of Housing.
“Otherwise if they don’t pay such deposit, there is no guarantee to protect the buyers,” he said.
The new law, he added, also demands that developers have the Housing Developers’ Accounts (HDA).
“Initially developers were quite sceptical of the provision of the law but we have to look at the housing ordinance in Peninsular Malaysia and it works for them. I think it is necessary for us (MOH) to ask developers to have HDA.
“The main provision in HDA is that developers must keep their accounts based on the project they do and this means that the finance in a developer’s account is solely for housing projects.”
Some 300 participants attended the seminar, which aimed to clarify guidelines on Housing Development (Control & Licensing) Ordinance 2013 (HDO), Housing Development (Control & Licensing) Regulations 2014 and Housing Development (Control & Licensing) (Amendments) Regulations 2015 (HDR).
Present at the press conference were Assistant Minister of Housing Datuk Abdul Karim Rahman Hamzah, Ministry of Housing permanent secretary Wan Lizosman Wan Omar, Housing Development Corporation president Datuk Dr Abang Abdul Rauf Abang Zen and Pantai Damai assemblyman Dr Abdul Rahman Junaidi and Sheda president Joseph Wong Kee Liong.