Global Knowledge Management and Economy - Nik Zafri

FINALLY

Congratulations from Nik Zafri to :

SPNB (esp. Datuk Idris Haron, Datuk Azian)
Datuk Seri Azmi and Dr Tan Seng Giaw of PAC,
Finance Minister II Datuk Seri Ahmad Husni
and PKMM

See how easy problem-solving are when everyone work together! With the ringgit getting strong, we could now have a cushion to fall on...probably getting rid of the sub-prime mortgage crisis effects.

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Source NST
SPNB completes 77 stalled projects
2010/05/11

SEREMBAN: Syarikat Perumahan Negara Bhd (SPNB) has so far revived and completed 77 stalled projects involving 24,326 housing units nationwide.

The development cost totalled RM480 million, Chairman Datuk Idris Haron told reporters after the handing over of keys to owners whose houses in the abandoned Taman Pelangi scheme had been completed here today.

He said SPNB had revived 23 projects involving 11,081 housing units covering a total of 191.16 hectares by providing financial assistance while the other 54 projects involving 13,245 housing units through advisory services.

"SPNB is presently resuscitating 11 projects under the 2009 Economic Stimulus Package involving 3,713 housing units with a restoration cost if RM381 million and all these projects involve land areas totalling 199.26 hectares," he said.

In Negeri Sembilan alone, he said, SPNB had revived nine projects including the Taman Senawang Jaya and Taman Seri Bayu projects.

Besides, SPNB was also involved in the affordable housing programme under which 9,046 housing units involving 143.37 hectares had been completed, he said. In Negeri Sembilan, three projects involving 1,717 units had been implemented under the programme.

For the Rumah Mesra Rakyat programme, Idris said the response was very encouraging.

Since the programme was introduced in 2001, SPNB had received 42,148 applications to date and had built 14,568 units valued at RM840 million.

"Under the scheme, an applicant needs to pay only RM150 a month for 26 years.
"SPNB remains committed to the national housing agenda by focusing on the development of affordable houses priced below RM100,000," he said.

The Taman Pelangi project was abandoned in 1990 and was taken over by SPNB for restoration in 2007 involving RM10 million.

The 11.5 hectare project comprises 257 low cost single storey terrace units (RM25,000-RM35,000) and medium cost single storey terrace unit (RM44,000-RM63,000). Each unit has three bedrooms and two washrooms. - Bernama
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PKMM and SPNB reach truce
Both parties agree to collaborate on future housing projects
NAJIAH NAJIB

Tuesday, February 2nd, 2010 10:51:00

PETALING JAYA: The Malaysian Malay Contractors Association (PKMM) and Syarikat Perumahan Negara Berhad (SPNB) have apparently reached a "truce" on the matter of the latter’s non-payment to the former.

Speaking to The Malay Mail, PKMM president Datuk Mokhtar Samad said both parties have agreed to collaborate on future housing projects.

He said this was agreed during a meeting between PKMM and SPNB at the latter’s office on Jan 27.

"The meeting we had with SPNB was a regular one. We discussed many issues, with the non-payment issue being one of them. On Class 'A' Bumiputera housing projects, SPNB said some of the projects were conducted via joint ventures with the contractors. If some of the projects experience slow sales, then SPNB, in turn, would also receive its payment late. It's merely a matter of slow cash flow," said Mokhtar.

"This is not to say that our contractors have not been paid at all."

However, Mokhtar said most of the contractors who had worked on smaller Class 'S' projects (housing for the poor) were duly paid by SPNB.

He added that slow or non-payment was also due to year-end finances.

"SPNB is wholly-owned by the Finance Ministry. We understand that it is very common for payments to be slow during year-end until early in the year, around February or March. This is very common, not just in Malaysia but in many other parts of the world."

He said PKMM also accepted the national housing company’s reason that the latter is currently understaffed and, therefore, things may not happen as fast as they should.

To overcome this problem, Mokhtar said the two parties have agreed to combine efforts in terms of manpower, at the suggestion of PKMM.

"For example, if there is a project in Pahang and SPNB find it difficult to send a technical adviser there from its headquarters to oversee the project, we will offer our help by sending one of our members there. This is not a problem for us as our members are located nationwide. Hopefully, this would help to speed up project completion as well as payments."

In the event of similar slow payments in the future, Mokhtar said PKMM had informed its members to seek the advice of the association first.

"Whoever has issues, we will try our best to sort them out. We will sit down with the contractors and re-evaluate the situation, check with them how many per cent of the projects have been completed, what were the problems encountered while carrying out the project and the like," he added.

"We understand that at times, SPNB can’t be blamed entirely. It is typical to jump and complain first rather than take the necessary steps to evaluate the entire situation."

Mokhtar clarified that earlier reports in the media on the national housing company not paying 34 Class 'A' Bumiputera contractors for completed housing projects were not accurate.

"According to the SPNB chairman (Datuk Azian Osman), the reported amount (RM500 million) was incorrect. He also refuted that he had given a deadline to pay all contractors by year-end," he said.

"This may be the problem when information comes from sources, as you just don’t know how credible they are. Many times people say things out of emotion. This is a business, it cannot be handled that way. In business, you need facts and figures to support whatever you’re claiming."

Aside from Mokhtar and Azian, the meeting last Wednesday was attended by 22 nationwide representatives from PKMM and four SPNB officials.

Previously, The Malay Mail reported that SPNB had, on Oct 30, 2009, promised to pay the 34 Class 'A' Bumiputera contractors by Dec 31. Though sources had claimed the amount owed was about RM500 million,

Azian had said the figure was less than RM300 million.

Azian had blamed the economy and poor housing sales as reasons the contractors have not been paid.

Subsequently, Finance Minister II Datuk Seri Ahmad Husni Hanadzlah told The Malay Mail that SPNB would rely on its land, unsold houses and other financing solutions to settle the debt.

Ahmad Husni had also said the ministry would not bail out SPNB as the situation was viewed as part of a business cycle.

The matter also caught the attention of the Public Accounts Committee (PAC) which expressed concern over SPNB's affairs after receiving numerous complaints about the national housing company.

PAC deputy chairman Dr Tan Seng Giaw had said PAC was expected to haul up SPNB soon to probe allegations of "money wastage" and order it to explain the circumstances.

However, no action has been taken by PAC thus far.