Shareda proposes 3 ways to ease Covid-19 impact
KOTA KINABALU: The Sabah Housing and Real Estate Developers Association (Shareda) has proposed three strategies to mitigate the impact of the novel coronavirus (Covid19) on property developers, including allowing its members to participate in privatized basic infrastructure and housing projects under the State Government.
In addition, Shareda also proposed to the Federal Government to extend the Home Ownership Campaign (HOC) and at the same time the association is planning to launch the Shareda Home Ownership Programme (SHOP).
Its president Datuk Chew Sang Hai said the property industry had been badly affected by the Covid-19 outbreak that erupted in China at the end of last year, which has now spread to Malaysia.
“The real estate market has been very quiet for the first three months of this year, whereby property transactions have dropped drastically.”
He, however, was unable to elaborate on the extent of impact while pending the release of the report.
“What I can say is that the property market is facing a challenging time due to Covid-19 and other factors.”
Chew said the real estate market was already slowing down when it was hit by the sudden outbreak of Covid-19.
“With the increasingly widespread transmission of the virus, property developers have adopted a wait and see attitude.”
Nevertheless, he said Shareda had devised three strategies that would help its members in overcoming these trying times.
He said the HOC programme initiated by the Federal Government had concluded.
“Shareda has decided to join the Malaysian Developers’ Council (MDC) in paying a courtesy call on the relevant federal minister when the outbreak is over to appeal for the extension of HOC in an effort to stimulate real estate demand.
“Meanwhile, Shareda will also initiate our SHOP programme for the same purpose, which we are going to start planning after the end of the Movement Control Order (MCO) on April 14.”
Chew also hoped that commercial banks could come up with innovative approach in loan application to stimulate the property industry.
Furthermore, he opined that the deferment of loan repayments as announced by the Prime Minister Tan Sri Muhyiddin Yassin in the economic stimulus package should be extended from six months to 12 months.
“The deferment should not only be limited to Small and Medium Enterprises (SMEs) and individuals. It should be extended to business and corporate banking loans as well.”
He also encouraged real estate investors to negotiate with their SMEs tenants on lowering the rental temporarily, and the government could help spark the conversation by providing partial interest waiver on loans to property owners.
Chew disclosed that Shareda had submitted its proposal to the State Government on privatizing basic infrastructure and housing projects for its members to participate in.
“Our members are happy to work with the State Government to implement basic infrastructure and housing projects.
“The government could pay property developers the construction costs in exchange for land.”
He believed that this measure could effectively reduce the government’s financial burden and stimulate economic activities in Sabah.
Chew said Shareda was awaiting the Federal and State governments’ response on the aforementioned proposals.