Problems having one-stop centre for DP approval
KOTA KINABALU: The concept of having a one-stop centre for Development Plan (DP) approval has its practical problems, said Local Government and Housing Minister Datuk Seri Panglima Hajiji Mohd Noor.
He said the centre cannot and must not usurp the authorities of the departments and agencies required by law to scrutinize the development plans.
“Problems related to the property sector include those directly under our jurisdiction, and others which are entirely under the purview of other government ministries and agencies. Say for example, the long existing problem with the process of development plan approval.
“We empathize with the developers on the issue of capital contribution and we agree with your contention that lowering of capital contribution could bring about cheaper property prices.
“Our data shows that, on average, the capital contribution rate charged by Sabah Electricity Sdn Bhd in Sabah is about five times higher than counterpart, Tenaga Nasional Berhad, in Peninsular Malaysia. We have presented our case. But the ball is not in our court,” he said at the Sabah Housing and Real Estate Developers Association (Shareda) Property Exhibition (PropEX) 2016 at Likas Sabah Trade Centre here yesterday.
Hajiji affirmed, although its Gross Development Value (GDV) had declined from RM3.7 billion in 2014 to RM2.7 billion in 2015, the Sabah government and his ministry in particular took nothing for granted when it comes to matters related to the real estate and property development sector as it remains a major economic stimulator in Sabah.
However, he clarified many rules and regulations must be upheld to protect the multitude of stakeholders whose interest must be protected.
“I know Shareda in general and developers themselves in particular have a long ‘wish list’ from cheaper land to faster development plan approval, to quicker land use conversion to cheaper capital contribution,” said Hajiji earlier in his speech.
“Unfortunately, some of these items have been on the wish list for a long time, and, also unfortunately, to remove them is not as simple as they are sometimes made out to be.
“The fact that the government and the industry players continue to be in dialogue as partners; the fact that the industry remains vibrant and has not ground to a halt; the fact that the importance of the stakeholders - from government assets to home buyers to the environment - are not compromised - they show a functioning system; they show that the giant may be a little slow, but it is very steady,” he added.
According to Shareda president Datuk Francis Goh Fah Shun, property projects have declined by more than half, from RM7.562 billion in 2013 to RM3.747 billion in 2014 and RM2.669 billion in 2015.
“For this year up to September 2016, the total GDV for project launched is RM2.137 billion only, every year Shareda members are expecting to launch their project in order to coincide with PropEX and if there is no new projects launched within the next three months, the total GDV achieved for year 2016 would not be better than last year. The slowdown may affect many chain related industries and its impact is severe and beyond our control,” said Goh.
Nevertheless, Goh urged Shareda members to seize opportunities presented with Kota Kinabalu’s world recognition of being the only Asian city voted as one of the top six best cities to retire.
He said the honor is a limited time window to tap onto the foreign buyers market in the Sabah property developments.
“It is time to intensify such activities by leveraging on the Malaysia My Second Home Program (MM2H). In this connection, certain elements of MM2H may need to be reviewed such as lowering their housing purchase entitlement from the present RM1 million to RM650,000,” he said.
“The basis of this suggestion are surveys by developers and financial institutions that showed properties priced higher than RM650,000 are not in demand by Malaysians, except perhaps for a small minority. Making such products only marketable to foreigners and we should encourage wider interest to foreigners to come and stay in Sabah.
“The lowering of foreigners’ housing price entitlement will potentially also attract highincome foreigners to migrate to Sabah. I have mathematical basis for this suggestion. Say we target 10,000 foreigners a year, each with RM15,000 for monthly expenditures. That shall translate into an annual revenue of RM1.8 million to stimulate Sabah‘s economy,” he explained.
Furthermore, Goh elaborated a 10-year plan will attract 100,000 expatriates and generate a RM18 billion turnover, as well as an anticipated 50% expatriate home buyers that will generate a property market boosting RM3.25 billion annually.
Assistant Local Government and Housing Minister Datuk Dr Joachim Gunsalam, Kota Kinabalu City Mayor Datuk Yeo Boon Hai, Local Government and Housing Ministry housing controller and permanent secretary Datuk Ginun Yangus, Shareda deputy president Chew Sang Hai and council member cum PropEX 2016 organizing chairman Raymond Xavier Chan were among the dignitaries present during the ceremony.