Better protection for buyers

22/12/2003 Malay Mail

Penang: Purchasers of high-rise properties can expect better protection should the Government agree to the establishment of a special board to manage the buildings' sinking funds.

The establishment of such board is viewed as a pre-emptive effort to prevent the abuse of funds by irresponsible developers.

Citing the issue as an urgent matter, Land and Cooperative Development Deputy Minister Dr Tan Kee Kwong said the ministry, together with the Local Government Ministry, are working closely in setting up the board.

He said the Ministry had received numerous complaints about errant developers.

"They allege that some developers are imposing extra fees for the purpose of repairing lifts and other infrastructure around their premises although such costs are supposed to be borne by the developers," he said.

"We want to protect buyers from being cheated and at the same time, promote responsible and quality management among developers," he said.

He said at present, sinking funds are used for building maintenance such as painting and ensuring that the elevators are in good condition.

Tan added that the Ministry had discussed the issue two months ago.

"If the proposal gets the go-ahead from the Housing and Local Government Ministry and other authorities, the board is expected to be fully-operational by 2004," he said.

"We had suggested that the board comprise officers from both Ministries, developers and high-rise management corporations," he said, adding that the problem of sinking fund abuse is rampant nationwide.

For the time being, Tan urged residents living in high-rise premises to work together in protecting their rights.

Earlier, Tan presented his keynote address at a workshop on management corporation for residential associations and management corporation of high-rises in Jelutong at the City Bayview Hotel.

Also present was Jelutong Member of Parliament Lee Kah Choon