Relook Bumi quota, low-cost housing policies, Putrajaya told

Cho likened the blanket discount to the poor subsidising the rich. — File pic

PETALING JAYA, Feb 18 ― Housing developers want the government to review housing quotas and discounts allocated to Bumiputeras and the poor, after complaining today of their abuse.

This follows the build-up of unreleased Bumiputera units, which they said was as high as 56 per cent of unsold homes costing above RM500,000 in prime areas of Selangor, Kuala Lumpur, Johor and Penang.

“Our request to the administration is for an auto-release mechanism,” said Datuk Seri Micheal KC Yam, president of the Real Estate and Housing Developers’ Association (REHDA) here.

“The policy needs a review ... It doesn’t really matter which government wins (the general election).”

The association further suggested that lots reserved for Bumiputeras be made available to the general public if there is no demand after a period of time.

His view was echoed by REHDA deputy secretary-general Datuk Anthony Adam Cho, who said the Bumiputera discount favoured those buying more expensive properties, rather than those who are less affluent.

“The more expensive the unit, the more discount is given ... Why are the poor subsidising the rich?” Cho asked reporters.

Following the implementation of the New Economic Policy (NEP), Bumiputeras are automatically entitled to a seven per cent discount on houses or property, regardless of their financial standing.

Cho, who is a developer in Malacca, complained of the glut of low-cost housing in the state due to the quota imposed by authorities, which he said caused developers to move away to other profitable areas.

“We’re having a dialogue with the government; why don’t you convert the low-cost requirement to low-medium cost requirement?’ Cho suggested.

The developers also complained of the utility connection costs, saying they had to bear the cost of having their property supplied with water, electricity and telephone lines.

“Why are we still paying contributions to Tenaga Nasional Berhad (TNB) who is making much more profit than our public-listed companies?” asked Cho.

The Malaysian Insider understands that on top of that, developers are also now required to incur between RM4,000 and 6,000 per unit to install high speed broadband infrastructure in their projects, or risk their development application being rejected by the Malaysia Communications and Multimedia Commission (MCMC).

In the Property Industry Survey ran by REHDA for the second half of 2012, 47 per cent of respondents claimed that they have unreleased Bumiputera units, an increase from 39 per cent in the first half of 2012.

Thirty-two per cent of those have unreleased units with a market price between RM500,000 and RM1 million, while 24 per cent have units above RM1 million.

Another 87 per cent of those surveyed reported that their unsold units had some impact on their cash flow.