High rise buildings in Kuala Lumpur - filepic
CONTRADICTORY statements on the Government's directive to DBKL to freeze four types of high-end developments in Kuala Lumpur has left many people confused as to whether this a blanket ban or there were leeways for certain projects.
Following a Bank Negara report released in June, Second Finance Minister Datuk Seri Johari Abdul Ghani was reported in a property news portal on Nov 20 as saying that the Government had put in place a blanket ban on the four types of developments, namely shopping complexes, offices, service apartments and luxury high-rise apartments priced over RM1mil.
By midday, there appeared to be a U-turn on the decision as Works Minister Datuk Fadillah Yusof reportedly said the decision was not a blanket stop-order, and that approval on luxury projects would still be given on a case-by-case basis.
However, the next day several news portals said there was no back-tracking, quoting a statement by Johari at the Malaysian Institute of Economic Research’s (MIER) National Economic Outlook 2018 – 2019 press event on Nov 21.
Johari also said all projects that had already been approved could proceed.
“The public is confused with both the conflicting directives,” said National House Buyers Association (HBA) secretary-general Chang Kim Loong.
“Perhaps the Prime Minister or Deputy Prime Minister could respond to what ‘no uncertain terms’ in the Cabinet's decision means," he suggested.
Nonetheless, Chang hails the decision by the Cabinet to put a lid on approving on expensive projects.
“HBA has been saying for many years that there is a big mismatch between what the rakyat can afford, which is RM150,000 to RM300,000, and what Real Estate and Housing Developers’ Association Malaysia (Rehda) thinks they can, which is RM500K and above.
He added that it was time Rehda woke up, faced reality and started offering what people could afford before the situation got worse.
“The Cabinet has made a well-informed decision based on the accurate analysis from Bank Negara Malaysia’s report.
“The growing imbalance is getting wider and could pose severe risks to the wider economy.'
Chang suggested that a task force with the right-minded people be formed to look into solving the problems as a long-term objective.
“The Government must now set the benchmark right by classifying that the correct definition of ‘affordable’ category is not more than RM300,000.
“Anything more than that is not under the category.
“The 1Malaysia People's Housing Scheme (PR1MA), too, must revisit their aims and objectives for the purpose they were established, that is building affordable housing, and not deviate from their role,” he added.
Uncertainty caused by the supposed flip-flop in statements issued has also trickled down and made its way into Kuala Lumpur City Hall (DBKL).
“We received a directive from our minister that we have to stop processing applications for high-end condos worth RM1mil per unit and above, shopping malls and office buildings,” said Kuala Lumpur Mayor Tan Sri Mohd Amin Nordin Abd Aziz at the launch of DBKL’s new Rover Team initiative yesterday (Nov 21).
“But as a minister mentioned in the papers, on certain cases we have to bring it up in a special meeting.
“So it is not all blocked, most probably projects like the TRX will be considered, I think, but I will have to discuss with the minister.
When asked about the number of projects applications that have been frozen since the freeze came into effect on Nov 1, he replied that there were none as yet.
“Applications we received before the directive will be processed, but there is no mention of how long the freeze will be,” he said.
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