Exempt high-end properties
New Straits Times 12/09/2005
WHEN policies' formulated and implemented many years ago become no longer
relevant in today's society, the Government should take steps to abolish or
adjust it to suit the current circumstances.
When the policy of mandatory requirement that developers should give a five
per cent to 10 per cent discount for Bumiputra house buyers was introduced
it was intended to increase house ownership by Bumiputeras.
This was especially directed at ownership of houses in the lower and medium
bracket.
However, today we see the policy extended to cover and include high-end,
sophisticated condominiums and bungalows.
If Bumiputeras can afford such expensive properties what then is the
rationale for giving them a discount?
Instead the Government should put a ceiling on house prices, which could
qualify for a discount.
For example all houses below RM100.000 should be given a five per cent or 10
per cent discount for Bumiputeras.
This way the benefit of lower priced houses would be given to those who are
in need of help and not those who are rich.
On many occasions local authorities have been delaying the release of unsold
Bumiputera units when it was quite apparent that Bumiputeras were not
interested. This has
undoubtedly caused hardship to developers.
This is especially true with City Hall Kuala Lumpur where developers after
having satisfied the condition of advertising in the papers for sale of
Bumiputera units were further told to hold road shows.
The whole exercise was really futile because most of the properties were
located in predominantly Chinese areas and no amount of publicity could
persuade Bumiputeras to buy the unsold units.
If the Government is insistent on selling those units to Bumiputeras then
perhaps the option is to set up an agency to purchase all units allocated
and sell them at a fair price. That way developer would not be saddled with
the holding costs.
