“Beware of Malaysian Property”.

This was the conspicuous headline that appeared in Sunday Times in Singapore on May 6th last year. It was sent via email to the National Housebuyers Association (HBA) by a staunch supporter from across the causeway out of his concern that the report may negate Malaysian developers’ efforts to market their products in Singapore.

We would like to give cognizance to the newspaper by reproducing what was reported.

“Where the Malaysian Property Exhibition goes, Mr. Jackson Chia, 63, follows with his own mobile exhibition – a collection of newspaper articles stuck onto his grey Toyota.

From 10am to noon yesterday, he stationed himself at the Suntec City Tower Three bus stop, 50m from the Malaysian Property Exhibition.

The show featured a group of developers selling property in Malaysia, and Mr. Chia was warning the public of the pitfalls of investing in Malaysian property. When people stopped to look at his newspaper cuttings, he encouraged them to read the articles and handed out fliers summarizing his experience at Anjung Seri Condominium in Johor Baru. 

Mr. Chia, a copywriter at a design firm, is one of 37 Singaporean buyers who paid between RM150,000 (S$66,800) and RM400,000 for units in the Anjung Seri Condominium. Problems soon followed. Two of the five blocks were left uncompleted because the developer ran into funding problems. Maintenance was poor and as time passed, residents started to move out.

In December 2005, the place was looted. Even fixtures like windows, grilles and doors were stolen. The group lodged police reports and wrote to the Malaysian authorities. In January this year, some of the owners went to the Malaysian High Commission here to seek redress. They have yet to hear from the authorities.

This is somewhat like the problem faced by the Singaporean owners of the Taman Permata residential estate, also in Johor Baru.  As reported in the Sunday Times last month, the estate’s developer went bankrupt and the homes might be taken away by the bank.

Mr. Chia said he hopes proper channels can be set up to safeguard future investors. He also wants to educate the public on the dangers of investing in Malaysian property.
As part of his efforts to educate the public, Mr. Chia will put together a book titled Malaysian Property: A Painful Experience.

The book will be ready by the end of this year.

“Now it’s not just a campaign for personal compensation, but a campaign to educate other Singaporeans,” said Mr. Chia.

Yet another plight

Somewhat similar to the plight of buyers of Taman Permata, there is another project – Taman Cahaya Kota Putri in Plentong, Johor where its developer, Arah Cipta Sdn Bhd, was wound up in April last year by the Johor Bahru High Court under a petition by an aggrieved purchaser.

A total of 1,090 buyers were affected by their purchase of either single-storey, double-storey, semi-detached or bungalow units, among them Singaporeans. They claimed they were victimised due to the lack of enforcement. A total of 400 police reports were lodged by the buyers.

Another abandoned housing project is located in the same district. Taman Mewah Jaya was a joint venture between the Titular Roman Catholic Bishop of Malacca & Johor (land proprietor) and developer Kong Sun Construction Sdn Bhd. The latter is in litigation with 145 purchasers, who also claim to have fallen victim to an abandoned project.

The agony

Buyers in abandoned projects are burdened with having to service their bank loans, including civil servants who are often forced to continue to have their monthly salaries deducted. In cases such as these, not only have house buyers’ plans to own their own homes derailed, in many cases their future appears seemingly bleak due to rising interest rates imposed by banks.

This is not only unfair but unacceptable. How do we expect those who are facing such situations to endure while unscrupulous developers get away scot-free? It should not be forgotten that for every buyer embroiled in a problematic housing project, there are at least three or more people (dependants or family members) who will invariably suffer the consequences too.

Caring attitude needed

The government of the day should be more sensitive to the sufferings of such victims. While the authorities have launched various initiatives to enhance Malaysia’s public delivery system, those suffering the agony of abandonment should not be left out of some respite.

A special task force to immediately look into each abandoned project should be formed to reflect the government’s seriousness to find workable solutions. Such buyers should not be left to fend for themselves, more so if they do not have the means.

Protection must be seen to be done

Quick solutions must be found taking into consideration that the Housing Development (Control & Licensing) Act has again been amended. Section 11 – entitled “Powers of the Minister to give directions for the purpose of safeguarding the interests of purchasers” – has been amended to provide the minister wider powers to safeguard affected buyers. Sub-clause (c), which previously required the involvement of the Minister of Finance, has been done away with.

The sub-clause reads “with the concurrence of the Minister of Finance direct a company to assume control and carry on the business of the housing developer upon such terms and conditions as the Minister may determine”.

We hope that with the fine tuning of the law, a mechanism will soon be made available for quick redress of similar problems. Delays and excuses should be issues of the past. The minister must have the courage and the resolve to invoke Section 11 whenever a situation warrants the need.

The recent amendment of Act 118 is also seen to revise the long title of the Act, which reads, “An Act to provide for the control and licensing of the business of housing development in Peninsular Malaysia, the protection of the interest of purchasers and for matters connected therewith.”

Indeed, protection must not only be done but must also be seen to be done. Otherwise, there will be no end to complaints by house buyers who will resort to using creative ways to get the attention on their frustrations

The National House Buyers Association (HBA) is a voluntary, non-governmental organization manned by unpaid volunteers. For more information, check out their website at http://www.hba.org.my