THE Real Estate and Housing Developers’ Association Malaysia (Rehda) has called on the government to standardise the Bumiputera housing quota to 30% with a uniform discount rate nationwide.

Rehda president Soam Heng Choon also called for an open and transparent release mechanism. 

“Properties above RM1 million should not have any preferential discount,” he said during Rehda’s annual dinner in Kuala Lumpur last night.

Present was Housing and Local Government Minister Zuraida Kamaruddin and some 800 members.

Developers have long claimed that many unsold properties involved Bumiputera units because of a lack of an auto-release mechanism.

Different states also imposed different quotas for such units at between 30% and 70%.

The release mechanism for Bumiputera units also varies by state, with developers having to apply for the release.

Soam also called on the government to reduce the cost of doing business by getting various stakeholders, such as state governments, to reduce premium and development charges.

The government was urged to compel utility companies to pay for their own capital expenditure and to ensure planning guidelines provide adequate nett sellable area for viability of projects. 

Soam also called for the reduction of other compliance costs, which he said “have been creeping up very fast.”

In addition, he called on the government to take over the role of building all social housing and have no role in competing with other developers in open market products. 

“On this end, we hope agencies like PR1MA and the others, which have now been put under the preview of KPKT (Housing and Local Government Ministry) should concentrate on the social agenda of the government. Otherwise future bailouts may become painful to taxpayers.”

Soam said Rehda hoped the govenrment will amend the Housing Control Act 118, the Strata Title Act and Strate Management Act, which he said was the result of the previous government “pushing through policies without listening to stakeholders comments, including Rehda.” 

“As we are all aware, the housing industry is facing strong headwinds,” Soam added. “While property overhang remains high, the cost of doing business has been increasing, thus, affecting the balance sheet of most developers.”

Soam said the new government has been made aware of pressing issues after representatives were summoned to meet the Council of Eminent Persons on May 14 this year.  

Meanwhile, Zuraida said the government will undertake a national home ownership campaign, where a stamp duty exemption on transfer instruments will be allowed for first home purchases, for units priced between RM300,001 and RM1 million within a period of six months beginning January 1, 2019. 

She said the government also announced a RM1 billion fund to be set up by Bank Negara to help those earning RM2,300 or less monthly to own their first home, with a low financing rate of 3.5%. – November 23, 2018.