Check with gov't before building properties, Johari tells developers

Developers should check with the government before deciding on their projects to prevent an oversupply of high-end properties in certain locations, Second Finance Minister Johari Abdul Ghani said today.

"It is good if developers can obtain more details on the locations where there is a glut of such properties, especially studio and service apartment units. 

"There is an overhang of 130,000 units of oversupply properties (as of the first quarter of 2017)," he told reporters at the launching of an e-procurement event in Putrajaya. 

Information on properties and their quantities are available with the Urban Wellbeing, Housing and Local Government Ministry, he added. 

In November, Putrajaya reportedly issued a moratorium on approvals for some types of luxury property developments in Kuala Lumpur.

The Kuala Lumpur City Hall (DBKL) was instructed to stop considering and approving the development of shopping complexes, offices, serviced apartments, and luxury condominiums priced over RM1 million in the city, effective Nov 1.

National House Buyers Association (HBA) had reportedly warned of more abandoned property developments if the government and developers do not take the freeze on luxury property development seriously.

Earlier today, the minister launched the new version of e-procurement website, which will kickstart on Jan 1, 2018, replacing the current one which has been in use since the year 2000.

Johari said the new version of the e-procurement website will be able to monitor and control government allocations in a more efficient manner.

"This can help the implementation of 2018 Budget in a better and comprehensive way, in line with the transparent principle in the management of allocation," he said.

"With the new system, we can make it compulsory for all the government's supplies and services procurement to be conducted online," he said, adding this is the first phase of the new version of e-procurement.

This involved an annual procurement totalling RM18 billion, he noted.

The next phase of the e-procurement, he said, will include the procurement under the development expenditure of the budget.

He hoped the new system will improve the level of transparency and integrity of the administration, which is needed in nation-building, as well as to garner the confidence of the rakyat and investors. -Mkini