Joint Communique Issued On 16 December 2011 at Kota Kinabalu
The Malaysian Developers’ Council (MDC) comprising the Real Estate and Housing Developers’ Association Malaysia (REHDA), the Sabah Real Estate and Housing Developers’ Association (SHAREDA), the Sarawak Real Estate and Housing Developers’ Association held its 15th meeting in Kota Kinabalu today hosted by SHAREDA.
The Council deliberated on common issues and challenges facing the housing and property industry in Malaysia and came up with recommendations on a number of issues concerning provision of low cost and affordable housing, the proposed implementation of the Build Then Sell System and the curbs imposed on the country’s housing financing system. MDC appeals to the Government to consider the following:
LOW COST AND AFFORDABLE HOUSING
The three associations, which represent some 1500 development companies in the country opine that the private sector has performed its duty and obligations to provide low cost housing to the lower income group for a very long time and it is timely that the role be reverted back to the government to be undertaken via its agencies and State SEDCs. This is particularly relevant as high cross subsidies on top of current spiraling development costs are no longer sustainable for the market to bear. The Council is of the view that the provision of low cost housing should be carried out through general taxation instead and housing developers should be allowed to focus on market driven products and affordable houses instead. The Council argues that by doing so, the Government will collect more federal taxes from developers which can then be subsequently channeled to social housing.
BUILD THEN SELL vs SELL THEN BUILD
The MDC also expresses concern on the proposal to implement mandatory Build Then Sell (BTS), by 2015 as the only system of housing delivery. We appeal to the Government to maintain the current delivery system as it has been proven to be an efficient, effective and economical method of delivery enabling the successful provision of subsidized low cost housing and housing to all. The single mandatory BTS system will lead to shrinkage of housing supply and will impact employment, value chain suppliers and various downstream industries ultimately leading to higher cost, hence adversely affecting affordability. We appeal to the Government to review the impact on the industry and the stakeholders and reconsider its implementation as the only single system of delivery as opposed to the current parallel delivery system.
There have been a number of articles in the media pertaining to household debt, loan to value ratio, mortgage based on net income and the like. We request for more clarity and greater engagement with all stakeholders particularly housing developers as such broad based announcements create uncertainty hence affecting the confidence of prospective buyers. We believed that property household debts on an appreciating asset should be encouraged versus liabilities carried by other depreciating consumer items. We seek further deliberation with Bank Negara and the Association of Banks to come up more transparent and clearer guidelines for the investing public.
Statement issued by:-
MALAYSIAN DEVELOPERS’ COUNCIL
DATUK SERI MICHAEL KC YAM
PRESIDENT, REHDA MALAYSIA
DATUK SUSAN WONG SIEW GUEN
HJ ZAIDI HJ AHMAD
For further information on MDC, please contact:-
REHDA : 03-7803 2978
SHEDA: 082-366 334