Data bank of individuals in housing industry needed to identify culprits 

NST 08/07/1999 By Chok Suat Ling

Branding housing developers as "good" or "bad" according to the point system proposed by the Housing and Local Government Ministry can only be good for consumers.

Consumers can make an informed choice when purchasing houses as the reputation of developers can be readily discerned.

If implemented, the point system will render it unnecessary for consumers to rake through the developer's history or depend on the often unreliable word-of-mouth.

They will be extra guarded with developers possessing red licences as this will mean the company has a bad record.

They will be careful with those holding yellow licences as this signifies a slightly blemished reputation.

Those seeing a green licence can be certain of being treated well. New developers will be given a white licence.

This point system will also help keep developers on their toes and try to fulfil all that they have promised to house buyers.

No credible company will want their reputation on the line as it is inevitably bad for business.

Developers are naturally worried about the implications of such a move.

One, who declined to be named, was especially concerned about the white licence accorded to new developers.

Potential buyers may shy away from a developer with a white licence as the company is new, he said. "It is unfair to the company which may already have invested huge sums of money on a project.

"It might be a good company keen to establish a name for itself in the industry, but consumers may not give it the chance, all because of a white licence.

"They will choose a company with a proven track record instead of one which they feel has yet to prove itself."

Developers should learn to take all this in their stride. True, being graded, put into categories and judged is not something which sits easily with most people.

But it is also unfair to say that housebuyers will steer clear from a particular project just because the developer is new. Embarking on any business is a risk and so too in the case of those holding white licences.

The crux of the matter is that developers are afraid of being "penalised' by the point system, fearful that they will be undeservingly branded like cattle. And even worse if the label they get is not that which they want.

But then, shouldn't only the guilty have something to fear?

Even Housing and Local Government Minister Datuk Dr Ting Chew Peh was quick to give an assurance. "We are not victimising or disgracing these developers but the move is to act as a deterrent."

To be fair, the Ministry will be consulting relevant parties in the housing industry to seek their views first before implementing the proposal.

But implemented it will be, Ting promised, as it is high time the welfare of consumers is safeguarded against unscrupulous parties in the industry.

To say that consumers are pleased is an understatement. Complaints, ranging from shoddy workmanship to misleading advertisements, have surged of late.

It is worse when they find there are seemingly no avenues for redress.

The point system will allow housebuyers to know right from the beginning whether they are doing business with a company with a reputable track record.

They will be able to weigh the risks and decide whether to proceed. And if they do, at least they will know what they are getting themselves into.

Consumer associations are naturally pushing for the point system to be implemented as soon as possible.

Flooded with complaints from consumers, they are more than aware how easily eager housebuyers can be hoodwinked by those in the industry interested only in raking in the profits.

But to ensure total protection for consumers under the point system, improvements will have to be made.

"The Ministry should not only blacklist housing developers but also the individuals behind the company.

"What is to prevent an individual from a blacklisted company from establishing a new company and carrying on their unscrupulous ways?

"How would housebuyers know that that person's former company had a bad track record?" asks Malaysian Consumers Arbitration and Redress Centre legal adviser Jacob George.

He said it was important to have a data bank of the individuals involved in the housing industry.

"The data bank should be prepared based on their track record of delivering quality homes using value-for-money concept."