Speech 07 October 2000

PROPERTY & INVESTMENT DEAL 2000
P.A.I.D. 2000
MR CHANG KIM LOONG [Secretary General of HOUSE BUYERS ASSOCIATION]
SPEECH TEXT AT SEMINAR
7th Oct 2000

A VERY GOOD AFTERNOON TO YANG BERBAHAGIA DATO HJ ZAINUDDIN, CHAIRMAN FOR THE HOUSE BUYERS ASSOCIATION AND ALL THE HONOURABLE GUEST, LADIES & GENTLEMEN.

FOREMOST, I WOULD LIKE TO THANK MR ELSON MOEY, THE CEO OF MESSE LINK (M) SDN. BHD. for inviting us to participate in PAID 2000 to launch our cause. I on behalf of our Chairman, Dato Zainuddin and the Committee of HBA would like to also thank Y.B. FU AH KIOW, the Parliament Secretary of International Trade & Industries Ministry for having extended us due recognition of our cause and the challenges ahead. This is the first public forum that we are conducting and in line with our series of events to upholding our MOTTO: “STRIVING FOR BUYERS RIGHTS & INTEREST”.

The House Buyers Association (“HBA”) is a non-governmental organisation, non-profit and non-political association of volunteers which consists of Lawyers, Accountants, Architect, Engineers, Contractors and Managers and all walks of life.

HBA has received its formal registration on 26 July 2000 having waited since October last year. The formation of the Association for Kuala Lumpur and Selangor as a forerunner for future branches in all States was promptly motivated by the innumerable complaints of dissatisfaction arising from the disgruntled house buyers who had found their Developer deviating from their part of the bargain.

This skilful connivance of errant developers had caused much anxiety and displeasure and to some extend untold miseries suffered by the house buyers who had to deal with such problems as:

non-adherence by Developers to the term in the SPA;
non-compliance to approved plans;
departure from plans approved by local authorities, with new amendments to the original plan without consulting or obtaining the consent of the house buyers;
shoddy workmanship and sub-standard finishing;
buildings not completed on schedule, some even after 5 years;
related problems became the bore of contentions between the feuding parties, such as Dev with house buyers;
conveniently and deliberately ignoring to apply for Certificate of Fitness;
deliberately not applying for permanent CF from temporary status;
blatantly delaying applicant for strata title which is the final documentary proof of ownership to condominium purchasers;
the worse of which “run-away developer leaving behind incomplete and abandoned projects”. Some of which results in “no house” because of foreclosed property by the Bridging Financier.
Developers charging hefty maintenance charges and ‘consent fees’ of 2%. Developers making use of the sinking fund and accumulated maintenance charges (paid by owners) to defer expenses/overhead incurred by subsidiary companies.

We are committed to help everyone who has a raw deal and short end of the stick from errant developers.

The formation of the HBA was prompted by the need for an appropriate and watertight legislation, governing the housing industries, whether its Housing Developer (Control & Licensing) Act, its related regulations Strata Title Act, National Land Code. For the lack of such improved/undated version of legislation and equally of great importance is its enforcement which some developers had taken advantage of the situation.

The objectives of the Association are as follows:

(a) to promote awareness of the legal rights and liberties of their members;
(b) to make representations and liaison to maintain close relation with the related ministries and local authorities;
(c) as ‘watchers’ of the building and housing industries;
(d) to look after the interest of house buyers as a group basis with common problem; we do not take up individual problems, it has to be a ‘Common Problem’;
(e) acting as a consultative body on matter affecting house buyers;
(f) to assist in updating legislation towards the new millennium;
(g) to obtain feedback and collect data/proposals for the betterment of the housing industry.

Since the appointment of the new Ministry of Housing & Local Government Yang Berhormat Dato’ Seri Ong Ka Ting early this year, we have to acknowledge and have seen some positive steps having been undertaken for instance:

(a) the minister has taken a commendable step to curb the housing problem by installing back on track and making it mandatory, the procedural requirement of developer to submit progress report to the Ministry every six (6) months. This biannual report would allow the Ministry to keep tab on the developers progress of their respective housing scheme.
(b) “Ensure that the house buyers interest will not be compromised” was significant remark made by the minister on 17/2/2000.
(c) The minister has also proposed “increased penalties against errant developers”. The penalties and punishment referred to in the article must be severe enough to instil shivers to the developer’s spine. It will deter developers from non-compliance. Again, a law is only as good as how it is being enforced.
(d) Proposal to amendment the laws governing the housing industries would be appropriate, we understand that the bill, Building and Common Property (Management and Maintenance) between vacant possession and issuance of strata title will be intended for the October Parliament sitting and anxiously await the proposed bills we will make our valuation/recommendation where appropriate.
The HBA never stop growing, we hold regular meetings with groups of house buyers helping to form Pro-tem groups, exchanging experience in handling housing problems, getting feed backs and proposal. We encourage buyers to adopt a pro-active attitude and contribute towards society for the betterment of the housing industries.
We are an association at an infant stage of growth and we offer to promote awareness to the laymen of their legal rights. We acknowledge the fact that we have a lot to learn from our peers on the industry and we acknowledge that we are willing to dissipate our knowledge.
To show this willingness to learn and be learnt from, I hereby open the floor for any views or proposal for the betterment of the housing industry.

THANK YOU.
“AN OUNCE OF PREVENTION IS BETTER THAN A POUND OF CURE”