Housing developers should launch their projects now that the fuel prices and the cost of building materials have dropped, Housing and Local Government Minister Datuk Seri Ong Ka Chuan said.
Over the past six months, he said, many projects did not take off as developers chose to stall them because of the rising cost of building materials.
He pointed out an average of 100,000 homes were built each year, but as of October, only half of that amount had been delivered so far.
“We always need the sale of houses to generate economic activity. Every house has 140 components, so if the developers stop building, then this also affects the factories producing the building materials.
“The professional bodies would have no business and this creates a backlash in the industry,” he told reporters at a Perak Fire and Rescue Department Hari Raya celebration here on Wednesday night.
“Launch the project because the demand for houses is always there. Of course, some developers still prefer a ‘wait-and-see’ attitude,” he added.
Ong also said the ministry was working out a mechanism to stabilise the cost of building materials for the housing sector, particularly low and medium cost housing schemes.
The Government, he said, had learnt its lesson from previous experiences when steel prices, for instance, had once soared and thrown builders into a difficult position.
“We have to talk with the developers, manufacturers and building material suppliers to work out the mechanism because we cannot make a decision when it affects their interest.
“We don’t want a situation where the high prices (of building materials) affect the supply of low and middle cost houses, which are in great demand,” he added.
Among the possibilities for the mechanism was the Government stockpiling steel or rendering other form of assistance, he said.
By CHRISTINA KOH (The Star)
3 comments
Aiyo..Ka Chuan you need money to buy also. Unlike you guys just print money.
They not really print la....they "get" from Malaysian only....still dare to say fuel price reduce!! what is the crude oil price in the market right now? what is our petrol stations charge us? 15 cents reduce??!! what is that? pitty us? when petrol increase, can shot up to RM2.70 in one night. Never think of the consequences...jz care about their pocket!! now they said cannot decrease too much because seller facing losses....what theory is this? when the price increase suddenly, they still selling old stock and earn double or triple....Now cut price, they "shouting" out there said their old stock is higher and "KERUGIAN"!!! earn money then keep quiet la, "bo lui" then shout la....how to buy house if this condition never improve?? how cheap the house also we can't afford...pity Malaysian...
This is the useless gov we have here. Talk and do something which slap on their own face. Stupid.