Engineers weigh in with objections to proposed changes

The Sun 19/10/2005 By Lim Ming Haw propertyplus@thesundaily.com

PETALING JAYA: Opponents to the proposed amendments to the Valuers, Appraisers and Real Estate Agents Act 1981 are hopeful that the changes will not be passed. Adding its voice to the group's opposition is the Institution of Engineers, Malaysia (IEM), which submitted a memorandum to the Ministry of Finance objecting to the proposed amendments.

The amendments, if approved, would exclude engineers and architects to be listed as "Property Managers under Class A of the Register", IEM says in a statement.

"The proposed amendments to the Valuers, Appraisers and Estate Agents Act 1981 do not reflect the true picture of practitioners in the property industry. Property managers are multi-disciplined and currently comprise various diverse professionals like architects, engineers, marketers, experienced practitioners, financiers and bankers, etc, apart from a small percentage of valuers. Therefore, property management cannot be restricted to or monopolised by only a select group of professionals, for example, valuers," IEM says.

"This would detract from the industry deriving the optimum benefit from multi-disciplined qualified and experienced personnel," it adds.

IEM also fully supports the government's objectives towards improving the professionalism of property managers as well as raising the quality of such services in the property industry to world-class standards. "However, the regulation of and restrictions to professional practice should be done to protect public interest and should not be taken as a means to monopolise business interests."

IEM vice-president Tan Yean Sheng says it recognises the need for regulation and registration where public interest needs to be protected but is against exclusionary or monopolistic manoeuvres.

"In the public dialogues on the matter, we have stated our objections and are hoping that the authorities will review the matter and not table the proposed amendments for approval. We hope that the public interest will be protected and the views of so many professional groups will be considered," adds Tan.

Meanwhile, the Board of Valuers, Appraisers and Estate Agents Malaysia (BVAEA) is waiting for the Ministry of Finance to approve the amendments for tabling. Board of Registrar R Mahaletchumi says there has been much "misreading" of the issue and hoped that the public and others would be able to get a clear picture of the debate.

The primary role of BVAEA, which comes under the purview of the Ministy of Finance, is to regulated valuers, appraisers and estate agents practising in the country. Groups opposing the amendment include the Malaysian Association for Shopping and Highrise Complex Management, Real Estate & Housing Developers' Association Malaysia and Associated Chinese Chamber of Commerce & Industry Malaysia.

Those for the amendments include BVAEA, Institution of Surveyors Malaysia and Association of Valuers and Property Consultants in Private Practice Malaysia. Mahaletchumi says there are an estimated 800 registered valuers in the country.

The amendments, its critic say, would result in unnecessary fees and lead to more regulation in the property management industry. The amendments are aimed at regulating the property management profession but a controversy has ensued over its implications.

IEM notes that the property management industry, comprising practitioners, has developed outside the mainstream of the valuation profession, and is now on par with the best in the world in terms of development and management, especially in commercial shopping centres and high-rise buildings. "We should be proud that even developed countries approach us to study our success in managing commercial properties and high-rises," says IEM's Tan.

"As the property and real estate industry grows in complexity and sophistication, we need to guard against the pitfalls of over-regulation or exploitation of new proposed regulation by some parties for their own personal interests," IEM adds. Instead, it calls for more training and development of personnel involved in the industry to raise standards, to enhance competitiveness, build an environment conducive to growth and to protect public interest.