Rehda to propose Home Completion Guarantee Scheme

KUALA LUMPUR: The Real Estate and Housing Developers' Association Malaysia (Rehda) is planning to introduce a Home Completion Guarantee Scheme.

Its president Datuk Ng Seing Liong said the scheme would eliminate the possibility of projects being abandoned as Rehda would step in to complete the project should any problem arise.

"The proposal has been submitted to the government and we hope to fine-tune its mechanism in due course," he said after the launch of the 13th Malaysia Property Expo (MAPEX) here on Friday March 19.

One way to start up the scheme is to have developers contribute 0.25% to 0.5% of their project's value into the fund yearly, he said.

"With this approach, we could see more than RM 1 billion injected into the fund each year. This grant would be a good way for the industry to self-regulate and ensure that a housing project that is in danger of being abandoned, get the necessary funds to be completed," he said.

Ng added that only 1.5% projects in the countries are abandoned. "However, you have to take into account that most of these projects have been abandoned for more than 10 years before regulations were tightened," said Rehda deputy president Datuk Michael Yam.

"In recent times, development of housing projects have been well-planned and regulated," he added.