Errant developers few in number
02/09/2004 NST By DATUK EDDY CHEN LOK LOI, Petaling Jaya

Sept 2:  I HAVE been actively involved in the property industry in Malaysia for over 20 years, wearing various hats, including that of a developer as well as immediate past president of the Real Estate and Housing Developers’ Association.

The industry has been through much and the Government has responded over the years with increasing efforts to protect house buyers. At the same time, the Government has to ensure that enough houses are built to accommodate our fast-growing population.

Buyers complain of inadequate regulations. On the other hand, developers complain of how over-regulation has made housing development prohibitive.

The current outcry over abandoned projects is an example of the pressures faced by the Government. Those were the cowboy days, when developers were gung-ho and demand was largely driven by euphoria, riding on a robust economy. When the bubble burst, abandoned housing was one of the consequences.

It was precisely to prevent abandoned projects in the future that amendments were made to the Housing Act and regulation.

Current criticism of the Ministry of Housing and Local Government for inadequate efforts to prevent abandoned projects is unwarranted.

Indeed any abandoned project causes much grief to all parties, especially the buyers, but steps have been taken to overcome earlier weaknesses and we must wait a while instead of prematurely condemning them.

Having said that, it is not possible to legislate against economic downturns or business risks, especially in a market-driven economy.

Buyers must do their research before making purchases and not merely follow the crowd. A more demanding public will compel developers to be even more transparent and weed out the errant ones.

The housing fraternity abhors errant developers who give the industry a bad name. These developers, though few in number, have caused laws to be changed and new ones enacted, resulting in increased cost of compliance. Hence, good developers, who make up the majority, end up shouldering the burden of their irresponsibility.

The public needs to recognise the progress made and join hands with the Government to advance further. Let us move on and not continue to be shackled by past mistakes.