Pushing for housing industry reforms

NST 19/02/2000 By Sheila Singam and Andrew Wong

Ong to set new standards, accountability

Three months into his term as Minister for Housing and Local Government, Datuk Ong Ka Ting has displayed a dynamism that could push developers out of their comfort zone by addressing some of their shortcomings.

Barely two months after assuming the helm, he initiated a close door dialogue among property players and non-Governmental organisations to ascertain the current needs and issues facing the industry.

Since then, his comments have been regularly quoted in the media, mostly centred on sub-standard construction quality, the need for property research before undertaking projects, and on developers who flout the law.

Quite obviously, he has stirred up the market; maybe even ruffled a few feathers. But the objective is quite clear - Ong wants to lay down the new standards for the industry and set it on a path of accountability, with the Government being the central monitoring agency.

Some NGOs, not to mention house buyers, have lauded Ong's move to take the bull by the horns; others have chosen to adopt a wait and see stance, preferring to see whether he is able to convert talk into action.

However, none can deny that Ong faces a Herculean task in cleaning up the Housing Ministry's act, which has often been blamed for the industry's woes.

There is also speculation that the role of the ministry might be enlarged to cover all types of property, not just housing in which case the ministry might be renamed Ministry of Property and Local Government.

"He seems to be the right person to undertake the job," said property analyst C.Y.Wong, adding that "his accomplishments as Deputy Home Minister have shown him to be diligent, enthusiastic and hands on in the way he tackles issues and he has wasted no time getting down to work."

President of the Malaysian Association for Shopping and Highrise Complex Management (PPK) Richard Chan said:

"The Minister is committed to addressing the issues facing the industry, and he has managed to capture the attention of the players so far. He appears to be taking the ministry into a new era where it will be more accountable and transparent it its role."

International Real Estate Federation's (Malaysian Chapter) Senator Tee Tiong Hock said: "The minister has been sensitive and responsive to the complaints leveled against the housing industry and seems set on upgrading the image and quality of the industry."

Ong has been strong in his criticism of both the industry and his ministry. This week alone, he hit out at the ineffective and outdated practices of the building industry and errant developers who failed to submit the requisite bi-annual progress reports on their projects.

He also did not spare the ministry, admitting that it had been weak in its enforcement of renegade developers. Ong gas pledged to do what is consumers have been clamouring for - stricter monitoring of housing projects and enforcement of regulations governing developers.

On the issue of submission of progress reports, the House Buyers Association (HBA) said it is a significant step towards curbing housing problems and ensuring that house buyers' interests will not be compromised.

Its pro-tem committee secretary-general Chang Kim Loong suggested that the reports should also be made public to enable purchasers to check on the status of developments, and that that the ministry make it compulsory for developers to post a list of their buyers for each project at their site offices.

This, he said, would encourage buyers to form "watch groups" to monitor the progress of their projects.

Master Builders Association Malaysia secretary-general Patrick Wong said the move to enforce progress report submission should improve professionalism in the building industry and in the long term result in better quality of housing.

However, he said it is important that the reports be assessed and evaluated by the ministry with feedback given to the developer while the project is going on.

Fiabci's Tee said regular progress reports by developers should not be seen as a burden, but as a step towards making development more efficient.

Ong also promised that from April 1, the ministry will approve licences and permits for developers within a month, provided applications are complete.

Tee said the issue of slow approvals for projects has been a bone of contention among developer, and the minister's assurance indicated a sensitivity to developers' needs.

Besides addressing development problems, Ong also announced that a comprehensive revamp of the Housing Developers Act would be undertaken to plug loopholes and to make it equitable for both developers and house buyers.

"While it cannot be denied that the revamp is timely, what happens after the amendments has been passed if more important. The law can only be effective if proper enforcement is carried regularly.

"Since industry players have taken the initiative towards regulations, it remains with the ministry to educate them," said C.Y. Wong.

HBA's pro-tem vice chairman Captain ® Mohd Shah Daud agreed, saying "a law is only as good as how it is enforced."