By Sharen Kaur
Published in NST on May 18 2011
Contractors are urging Syarikat Perumahan Negara Bhd (SPNB) to speed up payments due to them for building houses for the company, amounting to some RM400 million.
SPNB, a unit of the Minister of Finance Inc (MOF Inc) has in the last three to four years awarded contracts worth more than RM1.5 billion to contractors to build low- to medium-cost houses in Malaysia, in anticipation of demand for its properties.
However, because of weak housing sales, SPNB has been slow in paying the contractors since early 2009.
It is learnt that a majority of the affected contractors are small- and medium-sized Bumiputera companies. Bigger names include Naim Cendera Holdings Bhd and Zecon Bhd.
"Our margins are affected as payments from SPNB have been slow and we still have to pay interest rates for the loans that we took for the projects," said one contractor who declined to be named.
It is understood that SPNB has asked MOF Inc to help pay the contractors.
SPNB managing director Datuk Dr Sr Kamarul Rashdan declined to comment on Business Times' queries.
Sources close to SPNB said among the most affected companies include Naim Cendera, which was awarded three housing projects in Sarawak worth about RM600 million.
Naim has completed the first project and was fully paid about RM100 million. However, SPNB owes the company not more than RM50 million for works carried out on the first phase of a second project.
"The third project has been given the stop-work order, while the remaining phases for the second project are still pending clearance from SPNB," the source said.
Naim officials, when contacted, declined to comment.
SPNB was set up in August 1997 by the MOF Inc to provide affordable homes in Malaysia. It was given seed capital to initiate housing projects, which was later supposed to be self-funded.
SPNB is currently building 14,470 houses nationwide.
Kamarul had said in February that SPNB will launch a mega promotion, where it will offer up to 30 per cent discounts for completed houses, priced RM35,000 to RM250,000 each.
He said SPNB hopes to double sales this year with cooperation from Cagamas Bhd, Malaysia Building Society Bhd and Bank Simpanan Nasional.
In 2010, SPNB sold about 3,000 units of houses worth about RM400 million, and made a pre-tax profit of about RM15 million.
-ENDS-
Published in NST on May 18 2011
Contractors are urging Syarikat Perumahan Negara Bhd (SPNB) to speed up payments due to them for building houses for the company, amounting to some RM400 million.
SPNB, a unit of the Minister of Finance Inc (MOF Inc) has in the last three to four years awarded contracts worth more than RM1.5 billion to contractors to build low- to medium-cost houses in Malaysia, in anticipation of demand for its properties.
However, because of weak housing sales, SPNB has been slow in paying the contractors since early 2009.
It is learnt that a majority of the affected contractors are small- and medium-sized Bumiputera companies. Bigger names include Naim Cendera Holdings Bhd and Zecon Bhd.
"Our margins are affected as payments from SPNB have been slow and we still have to pay interest rates for the loans that we took for the projects," said one contractor who declined to be named.
It is understood that SPNB has asked MOF Inc to help pay the contractors.
SPNB managing director Datuk Dr Sr Kamarul Rashdan declined to comment on Business Times' queries.
Sources close to SPNB said among the most affected companies include Naim Cendera, which was awarded three housing projects in Sarawak worth about RM600 million.
Naim has completed the first project and was fully paid about RM100 million. However, SPNB owes the company not more than RM50 million for works carried out on the first phase of a second project.
"The third project has been given the stop-work order, while the remaining phases for the second project are still pending clearance from SPNB," the source said.
Naim officials, when contacted, declined to comment.
SPNB was set up in August 1997 by the MOF Inc to provide affordable homes in Malaysia. It was given seed capital to initiate housing projects, which was later supposed to be self-funded.
SPNB is currently building 14,470 houses nationwide.
Kamarul had said in February that SPNB will launch a mega promotion, where it will offer up to 30 per cent discounts for completed houses, priced RM35,000 to RM250,000 each.
He said SPNB hopes to double sales this year with cooperation from Cagamas Bhd, Malaysia Building Society Bhd and Bank Simpanan Nasional.
In 2010, SPNB sold about 3,000 units of houses worth about RM400 million, and made a pre-tax profit of about RM15 million.
-ENDS-
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