New Law Overprotective, Bad for House Buyers
“Sarawak has its own
safeguards and checks by
authorities such as State
Planning Authority (SPA),
which checks, controls and
approves all development
plans, unlike the rest of
Malaysia, where road
completion certification
(Road Cert) are issued
by local councils and
occupation permit (OP)
issued by local councils.
SHEDA President Zaidi Ahmad on left
The price of houses in
Sarawak is expected to
climb higher following the
passing of the Housing
Developers Bill 2013 by the
State Legislative Assembly.
This is because the new law
causes unnecessary costs
and this will be passed on to
house buyers, said Sarawak
Housing and Real Estate
Developers Association
(SHEDA) President Zaidi
Ahmad.
Using cars as an analogy, he
said the new ordinance is
akin to cars sold in Sarawak
having to be fitted with 30
airbags whereas cars in
the peninsula need to be
fitted with six airbags only.
The new ordinance will
replace the existing Housing
Developers (Control and
Licensing) Ordinance 1993.
Housing Minister Datuk
Amar Abang Johari
Tun Openg, said it was
necessary and appropriate
to review the existing
law in totality in order to
provide a more stringent
licensing, enforcement, and
compliance mechanism.
Among the new and
amended provisions are
power of the minister
to determine housing
accommodation, conditions
of restriction for the grant of
a licence, controller to forfeit
deposit, refund of deposit,
transfer or assignment of
licence, licensed housing
developer to open
and maintain housing
development account (HDA)
and freezing of the HDA.
It also covers investigation
and enforcement, specific
persons in respect of whom
powers of investigation may
be exercised, protection
of informers, controller
to report the conduct of
an architect or engineer,
powers of minister and
controller, jurisdiction of
housing tribunal, offences
relating to abandonment
of housing development
and release of money by a
stakeholder.
Zaidi said SHEDA had
actively discussed with
the ministry of housing
on the amendments, but
unfortunately most of
SHEDA’s views and feedback
were not taken into account,
such as those pertaining
to reducing compliance
cost, and reducing the
processing time to start
and complete development
projects. He said the HDA
had being implemented in
the peninsula for years and
yet it had not effectively
prevented abandonment
of projects nor fraud of
collecting proceeds from
innocent house buyers.
In addition, those who
committed this fraud are
usually not registered and
unlicensed developers.
“SHEDA is of the view
that HDA does not
necessarily prevent fraud
or abandonment of project
but will add additional
procedures, time and cost
to housing projects that will
be passed on to the house
buyers.
“With the various tiers of
controls by the relevant
authorities in Sarawak
already in place and
adequately regulating
developers, SHEDA is of
the view that HDA is not
necessary for Sarawak as
it will only increase the
compliance cost, resulting in
increase in house prices.”
Other factors that could
lead to house price
increase include increase
of consultant fees and the
longer Defect Liability Period
(DLP) due to amendments
in the Ordinance, as well
as increase of fuel price
and the increase of Real
Property Gain Tax in the
Budget 2014.
SHEDA is also not in favour
of the Housing Tribunal
being empowered to
hear complaints up to
RM150,000 because this is a
very sizeable amount that is
more than the construction
cost of a single storey
house, he added.
“That defeats the purpose
of the tribunal, where small
claims can be heard and
disposed of quickly. As in
any tribunal hearing there is
no legal representation nor
expert witness to assist the
court to give a fair and just
ruling to both complainant
and defendant.
PPR Project in Kepayan
Ridge to Proceed
Kepayan, Sabah
The State Government will not cancel the People’s
Housing Project (PPR) in Kepayan Ridge due to the
lower income group’s need to own homes. Local
Government and Housing Minister Datuk Seri Hj
Hajjii Hj Mohd Noor said the project, which was
launched by the Deputy Prime Minister Tan Sri
Muhyiddin Yassin a few months ago, will proceed
despite protests from surrounding residents.
“The government is very concerned and gives top
priority to the needs of the lower income group
to own homes. Actually we are aware that the
status of the PPR project site is for recreational
purposes but the government opined that it would
be best to convert the status for housing so as to
give opportunity for people to possess affordable
houses,” he sai