Monday, September 11, 2006

PROPERTY DEVELOPMENT IN MALAYSIA

In Malaysia, when you want to buy a house, say RM200,000.00 (about USD50,000.00), you have to pay 10% of the purchase price i.e. RM20,000.00. After that, you will sign the sales & purchase agreement with the developer. The developer will bill you in stages depending on the progress of the construction of the houses and it normally takes about 2 years to complete.

LAWS AND REGULATIONS RELATING TO HOUSING DEVELOPMENT

Ministry of Housing and Local Government
· Housing Developers (Control and Licensing) Act 1966 (Revised 1973) (Act 118)
· Housing Developers (Control and Licensing) Regulations 1989
· Housing Developers (Housing Development Account) Regulations 1991

Local Government Department
· Control of Rent (Repeal) Act 1997 (Act 572)
· Control of Rent Act 1966 (Act 363) (Revised 1988)
· Federal Territory of Kuala Lumpur Land Rules 1995
· Local Government Act 1976 (Act 171)
· Malaysian Constitution, Schedule 9, Item 76(4) & 95(A)
· Road Transport Act 1987 (Act 333)
· Street, Drainage and Building Act 1974 (Act 133)
· Town and Country Planning Act 1976 (Act 172)
· Uniform Building By-Laws 1984

National Housing Department
· Street, Drainage and Building Act 1974 (Act 133)
· Uniform Building By-Laws 1984

Fire Services Department
· Fire Services Act 1988 (Act 341)
· Uniform Building By-Laws 1984

Department of Town and Country Planning, Peninsular Malaysia
· FMS Town Board Enactment (Cap 137) Chapter IX
· National Land Code Act 56 of 1965
· National Land Code ( Penang and Malacca Titles) Act 1963 (Act 518)
· Street, Drainage and Building Act 1974 (Act 133)
· Strata Titles Act 1985 (Act 318)
· Town and Country Planning Act 1976 (Act 172)
· Uniform Building By-Laws 1984

Sewerage Services Department
· Sewerage Services Act 1993 (Act 508)




Other Related Legislation
· Communications and Multimedia Act 1998 (Act 588)
· Continental Shelf Act 1966 (Act 83)
· Environmental Quality Act 1974 (Act 127)
· Electricity Supply Act 1990 (Act 447)
· Land Acquisition Act 1960 (Act 486) (Revised 1992)
· Land and Mining Plans and Documents (Photographic Copies) Act 1950 (Act 233) (Revised 1980)
· Land Conservation Act 1960 (Act 385) (Revised 1989)
· Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994 (Act 520) (Construction Industry Development Board / CIDB)
· Malaysian Communications and Multimedia Commission Act 1998 (Act 589)
· Mining Enactment (FMS Cap 137)
· Municipal Ordinance S.S. Cap 133
· National Land Rehabilitation and Consolidation Authority (Incorporation) Act 1966 (Act 398) (Revised 1989)
· Occupational Safety and Health Act 1994 (Act 514)
· Real Property Gains Tax Act 1976 (Act 169)
· Urban Development Authority Act (Act 46)
· Waters Act 1920 (Act 418) (Revised 1989)
· Waters Enactment FMS Cap 146

7 Comments:

At 7:37 PM, Blogger Say Lee said...

With all these regulatory hurdles to cross, developers would have to recoup these "expenses" from the house buyers, indirectly pushing up the prices.

Whatever happened to the one-stop agency or is it still governed by tuft mentality?

On the other hand, developers are averse to the idea of build first, sell later. Perhaps they are merely following the axiom why fix it when it's not broken as long as the sellers' market prevails.

 
At 7:37 PM, Blogger Say Lee said...

I mean turf mentality.

 
At 12:33 AM, Blogger GameGeek said...

Well, to my disappointment, a developer's reputation is the only governing rule.

What can one do if the developer fails to deliver the house?

 
At 4:37 AM, Blogger projectmanager said...

The one stop agency is the same eventually, except now you put the cart before the horse. Before the one stop agency, the developer will submit the application for CF together with the Form E, and now the developer submit the applicaton to individual government departments for the CF supporting letter. After obtaining the approval from not less than 10 departments, the developer will submit the Form E to the one stop agency for the application of CF. The Hokkien's saying:" LP & PL."

 
At 5:30 AM, Blogger Ir.Chong Chin Meow said...

The JPS (Formerly known as the Drainage & Irrigation Department) had recenly made it compulsory for the developer/consultant to submit the MASMA calculation.was there any law empowered them to do so?

 
At 9:07 PM, Blogger projectmanager said...

Under Malaysian Law, water is the subject of control and regulation by both Federal and State governments. In relation to water and water resources, the Federal List includes water supplies, rivers and canals except those that are wholly within one state or regulated by an agreement between the states concerned.
In the State List, the states have control over rivers, riverine fisheries and water (including water supplies, rivers and canals that are wholly within one state or regulated by an agreement among the states concerned) as well as control of silt and riparian rights.
Some of the existing legislations relevant to water and water resources management are:
- Water Act 1920 (Revised 1989)
- Irrigation Areas Act, 1953
- The Drainage Works Act, 1954
- Selangor Waters Management
- Authority Enactment, 1999

Under the act, the authorities are empowered to enact their own rules & regulations which also forms part of our legal system. I will do some research on the law that enpower JPS to enforce the MASMA calculation and revert to you as soon as I have the answer. I believe, my research would be good for academic purpose, no matter what is the outcome, we have to swallow the bitter pill.

 
At 3:59 AM, Blogger Say Lee said...

MASMA, the Malaysian Stormwater Management Manual, is a successor to the Urban Drainage Design Manual implemented in the mid-1970s. So this is nothing new as far as requiring a submitting consultant engineer to attach calculations.

A wider perspective is wheather DID is micro-managing by requiring a registered professional engineer who has earned his keep so to speak through the mandated registration route, to submit calculations.

A parallel could be whether a registered PE is required to submit structural calculations for building design to local councils.

Afterall, under the Registered of Engineers Act, a registered PE is professionally responsible/liable for his submissions and works.

Perhaps the legal precedent set up in the Highland Towers case could be of some help.

 

Post a Comment

<< Home