Selangor developers: OK to pay

As long as the Selangor govt takes care of slope maintenance, says Real Estate, Housing Developers' Association
Tuesday, December 15th, 2009 10:39:00

KUALA LUMPUR: Developers in Selangor have nothing against the State government's proposal to implement a "hill development charge fund" as long as the charges are reasonable.

Real Estate and Housing Developers' Association Malaysia (Rehda) president Datuk Ng Seing Liong views the proposal favourably, saying that developers are willing to fork out the amount in exchange for expertise in slope maintenance and stabilisation.

"We have no problems with the proposal, as long as the charges are not too high. If the government is going to take care of the maintenance of the slopes, we are more than happy to cooperate."

The proposal, aimed at addressing the high maintenance and monitoring cost for highland developments, was recently announced by Selangor State exco Ronnie Liu.

He commented on the lack of expertise possessed by land and property owners to maintain and stabilise hillslopes, resulting in mishaps in hillside developments.

With the fund, developers who undertake projects on hillslopes are required to contribute an additional amount which will be used for slope stabilisation and maintenance, as well as urgent rectification works.

According to Ng, the charges will not affect developers' operational costs adversely. "If the charges prove to be too costly, then we'll have a problem."

Asked whether prices of hillside properties would go up with the implementation of the fund, Ng said: "We do not know the exact amount we're required to pay yet, so let's just wait and see."

The issue of risks posed by hillside developments has been an ongoing debate over the years.

The Bukit Antarabangsa landslide last December saw the issue being highlighted again when the tragedy claimed five lives and resulted in extensive property damage.

The issue was raised recently when the Damansara 21 project, on which a stop work order had been imposed, was given the go-ahead to re-start, to the dismay of Medan Damansara residents. A memorandum has been submitted to the Kuala Lumpur mayor, calling for the project to be halted once and for all.

Hillslope charge a burden

Datuk N. Marimuthu, Federation of Malaysian Consumers Associations President

The Selangor government should grow up. In the end, it is the consumers or end-users who will have to bear the cost. This fund will only burden the people. Consumers should even not buy houses built on hillslopes.

It is dangerous. We should be aware of the risk involved and we have seen many disasters over the past few years due to this. I feel that such projects should not even be approved in the first place.

It may be true that this  could be another 'no supply without demand' case but I really hope consumers can understand the issue here and I believe they should know what is best for them.

Mohd Shaani Abdullah, National Consumer Complaints Centre Chief Executive Officer

The fund idea is good but it is not a solution.

Regulations should come first and this is where we need to beef up. It is not easy to manage but we need regulations that put the people's safety first.

It is the consumer who will have to bear the cost. By right, it is the developers who should be the one absorbing it. After all, it is they who want to build and they have to be responsible for it.

Noor Nirwandy Mat Noordin, Malaysian Islamic Consumer Association Project Manager

This is a good idea from the Selangor government but it has to ensure that hillslope projects will not harm the environment and the people living in the surrounding area. At the same time, the State government and developers will have to be responsible for each decision they make and they have to be ready to face any consequences.

The State government should form a special body to oversee the whole plan. This body should not only be transparent but also act as a watchdog to ensure the safety of the people. The State government should also pay close attention to the lower and middle income groups and not just cater to the needs of the rich who obviously are potential buyers for such projects.

Comments

It is a good idea to set up the funds, so that a professional body can be engaged to monitor and maintain these hill slope projects once completed and delivered. Besides, strict enforcement of the rules and regulations should be the norm in any housing projects to minimize unnecessary lost of lives and properties. Since we are in a market economy, ultimately the consumers are the one that will make the decision whether to buy the hill slope property at a designated price. Price should not be the main concern to the consumers because the developers are not that silly to price it too high that ended with no purchasers.

Submitted by Anonymous on Tuesday, December 15th, 2009.
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