Heed 'build-and-sell' call of prime minister
27/05/2004 The Sun

YOUR "Ipoh Watch" column highlighted the need for "build-and-sell" over a year ago.

The recent call by the prime minister for the "build-and-sell" policy in the housing industry is long overdue. However, the housing and local government minister seems less than convinced.

He cited problems in making this paradigm shift. His negative attitude is disappointing.

Build-and-sell means developers must deliver on quality. Hence, the consumer will gain both in quality and price.

This is contrary to conventional thinking that just because developers have to look beyond the consumers to finance their own schemes, house prices will go up.

Experience from many countries, including Thailand where "build and sell" is the norm, has shown that house prices do not rise just because of "build-and-sell".

If anything, under the present system, houses in Malaysia are some of the most expensive in the world. Build-and-sell also reduces the problems that have plagued the industry for decades.

Consumers get burnt when developers go belly-up. Then, there is the problem of overbuilding by developers, adding to the surplus stock of houses in the country. And, of course, the problems of poor quality and late delivery.

However, other than just call for a change, the government must do its part. Applications must be processed more efficiently.

The quota and discount for bumiputras must be re-examined.

The government should also bear some of the responsibility for low- cost housing. Let the various SEDCs take over this sector. These are some of the hidden costs developers have to bear.

Whatever the problems, the advantages of "build-and-sell" far outweigh the pain of change developers have to endure.

Housing developers must be dragged by the scuff of their necks to meet this change. And the minister for housing along with them, if need be.

Yin Ee Kiong, Ipoh