Ucapan Y. Bhg. Dato Haji Zainuddin Hj. Bachik, Pengerusi,
Persatuan Kebangsaan Pembeli Rumah, Malaysia pada hari pelancaran
02 November, 2002
ceremony of the National House Buyers Association which you will soon witness
this afternoon opens another chapter with a new dimension in the history
of the progress and development of the Association. Consequent to the upgrading
of its status, liaison committees will be set up in the States to deal with
house buyers’ complaints.
Although the Association will have wider areas to cover, it will certainly
never cease in its pursuit with continued vigour in search of improvement
for the protection of house buyers’ rights under the laws and regulations
governing the housing industry in this country.
In countries like Malaysia where the housing industry is susceptible to
deceits and dishonesty displayed by some developers, tough laws and rigid
enforcement must run parallel to each other to curb the cancerous growth
of the contemptible practice.
A deterrent legislation to nab offenders may loose its luster and become
ineffective if it is not strictly and impartially applied.
An Act should be made to serve its ultimate purpose with the minimum of
delay once it has been passed by Parliament. On the contrary its original
good intention to forestall infringement will be at jeopardy thereby creating
more public frustration and eroding their confidence.
It was regrettable that our local housing developers did not aspire to imitate
the moral values set by their counterparts in the developed countries where
they competed to excel each other in producing quality workmanship lest
their reputation would be at stake.
Every individual player closely linked with the building industries in those
countries observe the code of work ethics and their professionalism and
as a result no stringent laws were required to monitor and control their
Our present system of sales and purchase houses merely by looking at the
building plans spells disaster and breeds distress to house buyers because
of the crookedness of the developers taking advantage to cheat innocent
and unsuspecting house buyers.
To justify the costs of public money involved in maintaining an enforcement
service, developers who had committed offences should be prosecuted and
appropriately charged in accordance with the severity of the case if the
present system of selling house i.e. sale off plans that had been aggressively
abused were allowed to continue.
Small developers with limited cash flows and financial back up should only
be permitted to take on small projects to match their capabilities or merge
with others to form a consortium of builders to undertake projects requiring
huge capital outlay.
The ‘build then sell’ concept has proven to be the most ideal and is practiced
in most developed countries and one that can circumvent problems that may
arise to house buyers under our present system of sales and purchase of
houses. Even the People Republic of China practices the same concept. Our
recent visit by our Secretary General to Hangchow city reveals abundance
of completed apartments and condominiums; where all developers toe the line
to have a paid up capital of RMB 2 million equivalent to Ringgit Malaysia
1.0 million. The government don’t have problems with developers because
they adhere to the concept.
Under this concept, a house buyer need only to pay the initial booking fee
of 10% of the purchase price of the house and the balance of 90% will be
collected when the house has been completed and ready for occupation either
from the house buyer’s own fund or a loan from a bank. No other payments
are required during the period of construction, thus saved house buyers
from paying interests.
Preference for this concept to be implemented in this country was based
on a few local developers utilizing the concept who had successfully sold
their units upon completion of the projects leaving no units unsold or properties
overhang as predicted and feared by developers and the financial institutions
that provided the bridging finance.
Here, house buyers do not have to share the risk of the developers business
which apparently seemed to be.
The overall merits of the concept far outweighed its shortcomings as buyers
would have the opportunity to view and make an appraisal of the newly completed
house before making their final decision to purchase. It would then be a
straight forward procedure between willing buyers and willing sellers without
incurring animosity or hassle between them subsequently.
HBA had always been advocating for the ‘build then sell’ concept and would
urge the authorities to seriously look into and consider its positive aspects
by promoting and providing incentives to housing developers to adopt the
system. Potential house buyers too could play their role to depress the
housing market by preferring to buy only readily built houses or condominiums.
HBA would like to express its great appreciation to YB Dr Tan Kee Kwong,
the Deputy Minister of Land and Cooperative Development for his valuable
donation and consent to officiate at the launching of the National House
Buyers Association and for his deep interests in its activities to ensure
protection for house buyers’ rights.
President of National House Buyers Association,
Datuk Zainuddin Bachik