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More Incentives Needed To Help Distressed Properties

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M. K.H. Sim, Chairman of Allstones Group Asia Sdn Bhd.

Allstones Group Asia has lauded the proposed amendments to the Housing Development Act, 1966 by the government and also urged the authorities to look into even more measures that would help existing property buyers who are already trapped in cases of abandoned projects.

“The proposed amendments to the Act are all well and good for future buyers, but what about people who have already invested their hard-earned money in properties that have been abandoned?,” asked M. K.H. Sim, Chairman of Allstones Group Asia Sdn Bhd.

Sim expressed hope that the government would consider incentives for ‘white knights’ that rescue distressed properties in the coming Budget. “To help alleviate the financial burden of existing buyers already affected by abandoned projects, the government should consider motivating ‘white knights’ to undertake revitalization of distressed projects. These could include mandatory quota of project financing by local banks and the Government taking the lead by setting up a special fund to provide project financing to ‘white knights’ at preferential rate with an element of mutual profit sharing,” he said.

“The government should also consider tax incentives for consultants and parties involved in rescuing abandoned projects, passing of an Act similar to the Danaharta Act for the Government to take over abandoned projects and appointing prequalified ‘white knights’ and consultants to revive these projects. In addition, a one stop agency should be created to resolve planning and building issues, speedy approvals and licences from the relevant authorities,” Sim added.

At the end of the day, the objective is to help those trapped in this unfortunate situation as fast as possible. Some have lost their life savings and have little hope of ever seeing their dream home,” he concluded.

Allstones Group Asia Sdn Bhd has long been involved in reviving distressed and abandoned projects. Over the years the company has gained much experience in this niche market within the property industry and has had successes in several special situation projects. The group has successfully revived and completed distressed projects, turning them into successful developments such as Taragon Puteri YKS, Taragon Puteri Cheras and Taragon Puteri Bintang.