/// East Malaysia Property News
Sarawak Assembly Passes Resolution Calling for 20
Percent Oil Royalty to Boosting Local Economy
EAST MALAYSIA
PROPERTY NEWS
Keep track of the latest property and real estate news
plus reviews in the property market in Sabah and
Sarawak
The Sarawak Legislative
Assembly has unanimously
voted in favour of a
resolution to request the
Federal Government for an
increase in oil royalty from
5% to 20%.
SHAREDA Made Calls to Minister of Special Task
A motion on the increase
was originally tabled by
Chong Chieng Jen (DAP-Kota
Sentosa) but an amended
motion, which included
seeking more development
grants from the Federal
Government aside from the
royalty, was subsequently
tabled by Abdullah Saidol
(BN-Semop) and approved.
Abdullah said his motion was
in line with Chief Minister Tan
Sri Adenan Satem’s recent
statement in support of an
increased royalty.
The Sabah Housing and Real Estate
Development Association (SHAREDA)
council members recently visited the
Minister of Special Task, Datuk Teo Chee
Kang at his office. During the visit headed
by SHAREDA president Francis Goh, the
minister was briefed about the 2013
Property Development Annual Report
which was recently released by SHAREDA.
Goh discussed major topics that are
14
www.PropertyHunter.com.my
covered in the report including the
importance of the property development
industry to Sabah’s economy. The report
aims to be a relevant source of reference
for related government departments,
professional bodies, real estate players,
SHAREDA members and counterparts
such as REHDA and SHEDA.
“We plan to invite the Federal
Government to revisit the
royalty arrangement, which
includes reviewing the
relevant legislation. The Chief
Minister’s statement was
not mere political rhetoric
but a representation of the
genuine sentiment of all
Sarawakians.
“This motion is about our
desire to review the royalty
rate to a quantum more
favourable to us. It can be
also construed as a request
for more development
funds which we can channel
to rural areas where basic
needs like electricity, clean
water and roads are still
needed,” he told the House.
Abdullah added that the
state wished to mutually
negotiate a revision of
the royalty with the aim
of achieving a better deal
in order to accelerate
development.
“We don’t want the
Federal government to
accommodate our request
on humanitarian grounds
but must be able to impress
upon them that we have the
right to be treated equally
as a partner when we jointly
formed Malaysia,” he said.
However, he said the pursuit
of a higher royalty rate must
not affect the close working
relationship, mutual respect
and cordiality between
the state and Federal
governments.
Meanwhile, Chong said he
did not mind that his motion
had been amended by a
Barisan backbencher.
“Once a motion is passed, it
is the House motion. It does
not matter who originates
the motion. This day we will
make a unanimous decision
and give our full support
even if the motion comes
from Barisan.
“What is important is that our
state gets this money,” he
said.
This motion is about our desire
to review the royalty rate to a
quantum more favourable to us. It
can be also construed as a request
for more development funds which
we can channel to rural areas
where basic needs like electricity,
clean water and roads are still
needed,” he told the House.
Families Struggling to Buy
Homes Due to Bank Negara’s
Rules
Local lenders should
provide more accessible
financing to ordinary
Malaysians in order to
help the government
build 1 million low-cost
houses, according to
Francis Goh Fah Sun,
President of the Sabah
Housing and Real Estate
Developers Association
(SHAREDA).
“We have concluded
during the meeting
that we should have a
discussion with Datuk Seri
Najib Razak, who is also
the Finance Minister, [to
forward] our suggestion”
because it is vital to
provide more accessible
financing facilities to
home buyers, particularly
low income groups so
that they can actually
afford these units.
He said this during
the 19th Malaysian
Developers’ Council
(MDC), which was also
participated by the
Sarawak Housing and
Real Estate Developers
Association (SHEDA) and
Malaysia’s Real Estate
and Housing Developers
Association (REHDA).
Due to Bank Negara
Malaysia’s (BNM) tough
lending guidelines,
low income families
are having difficulties
in buying a home
despite the many
assistance provided by
the government, Goh
explained.
To address this, the
loan criteria for housing
schemes such as
MyHome should be more
flexible, he suggested.
Local lenders are also
urged to adopt a quota
system as part of
their social corporate
responsibility (SCR)
programme.
“There are over 2,000
branches of local banks
across the country. If
each of them adopts a
quota of 500 affordable
home applicants, we will
meet the 1 million target
in no time. Perhaps,
Bank Negara can impose
this as some kind of
requirement for the
banks,” added Goh.
Another proposal is
that the government
should slash the upfront
cost paid by home
buyers, which include
utility charges levied on
developers but were
transferred to the total
unit price, according to
REHDA President Datuk
Seri Michael Yam.
“Inste