Developers hope for more Government measures

Developers hope for more Government measures

By CHAN CHING THUT

PETALING JAYA: The property sector welcomes the Government's move to abolish the real property gains tax (RPGT), but the players hope to see more measures to further spur the industry.

Could Datuk Seri Abdullah Ahmad Badawi's widely anticipated announcement on improving public service delivery in relation to local Government authorities on Friday offer more good news for the property sector?

At an event last week, Deputy Prime Minister Datuk Seri Najib Razak said the Prime Minister would announce major changes in the new delivery system affecting the construction and property sector.

Property developers contacted by StarBiz raised various issues that they hoped the Government would improve on, but none more pressing than shortening the approval time for development plans and having the various parties work together.

Sunway City Bhd senior managing director Datuk Wong Choon Kee hoped the Federal and State Governments could work together by having a shorter and more efficient process for property planning approvals in the country.

“Depending on the steps and processes adopted by a state, planning applications for property development can take between six months and two years.

“If this issue is addressed quickly, it will have a positive effect on the way we do business, leading to greater efficiency and transparency in the property development and the construction industries,” he said.

MulphaLand Bhd chief executive officer Lai Meng shared Wong's view.

“We strongly believe that approvals of development plans and requests from property developers should take less time.

“Currently, many developers find it rather discouraging when such approvals take too much time and there is too much uncertainty. The Government, especially at the state level, has to understand that in this business, time means money,” he said.

On improving the delivery service, Wong said it had been bandied about for a long time.

“On issues relating to land, we hope the Government can expedite the conversion and approval of land titles, say from agricultural use to residential or other purposes. As for registration of titles by property buyers, we like to see State Governments expedite the process so as not to burden buyers when they apply for bank mortgage loans,” he said.

To further boost the sector, Lai expected the workings and incentives for the Malaysia, My Second Home programme to be reviewed, simplified and properly communicated.

“There is a healthy interest in Malaysian properties from foreigners but the application process needs to be less cumbersome,” he added.

Mah Sing Group Bhd managing director Datuk Leong Hoy Kum said in continuing the Government's stance of proactively creating a conducive environment to spur economic activities and growth, the Prime Minister might outline changes to the streamlining of approval processes for the property industry.

“For example, the Selangor Government has announced that to speed up approval processes, developers can now submit layout and building plans at the same time, with a targeted three to four months' timeline for approval.

“Other states may also adopt this investor and developer friendly move as speedy approvals would lead to a lower holding cost for developers, translating to better efficiency of capital. These savings could be passed on to the house buyers, which is a win-win for all,” he said.

Lai said Abdullah had announced some interesting incentives for the Iskandar Development Region.

”We hope to see increased incentives that spur the take-up of properties in the area. Any changes to taxes and stamp duty should be clear, concise and easy to implement,'' he said. “The measures should look at benefiting both developers and buyers to spur the rate of development.”