The Selangor government imposes a "social contribution fee" on housing developers.
Real Estate and Developers Association of Malaysia president Ng Seing Liong described the RM50,000 fee per 0.4ha for projects in town areas as unfair.
"It is such a hefty sum. On top of that, developers are already required to pay a 15 per cent conversion fee," said Ng.
He said the victims of the move would be small- and medium-sized developers as they were the ones who normally undertook projects less than four hectares.
"Instead, big projects developed by the major developers are exempted. The ones who can afford it don’t pay while the ones who can’t have to."
Ng claimed some projects had been delayed as developers refused to pay the fee.
"We expect Datuk Seri Abdullah Ahmad Badawi to bring more good news to the property and construction industry," said Ng. However, Ng's hope will have to wait for the next 35 years and the government is adament about the imposition of the fees.
Khir Toyo's sidekick, Selangor Housing and Squatters Committee chairman Datuk Mokhtar Dahalan said the decision to impose the fee had been thoroughly studied.
"The money collected will be used to build parks and other public facilities."
Mokhtar said the ruling would not be withdrawn despite protests from developers.
Mokhtar Dahalan claimed the money would be used to build parks, schools and other public facilities for which funds were already allocated by the Federal government. Despite so, the State feels it is better to have more, because more is better than less.
October 9, 2004, NST reports:
Unnecessary double-measures a heavy burden to property developers.
New regulations and requirements slapped by Selangor’s authorities are costly, duplicative and bureaucratic, as builders already face enough Federal legislation, the Real Estate and Housing Developers’ Association (REHDA) said.
“Malaysia’s housing industry is already one of the most regulated in the world,” said Datuk Jeffrey Ng Tiong Lip.
Recently, the Selangor Government imposed new requirement to all developers requiring them to register with Lembaga Perumahan dan Hartanah Selangor (LPHS) and pay a registration fee of 0.1% of their gross development value. Developers are already registered with the Ministry of Housing and Local Govt and an additional layer is unnecessary. The new requirements also include regulations on Bumiputra lots to be predetermine by LPHS on the developer’s layout and building plans while another ruling requires the developers to deposit 40% of the overall development cost of a project in a bank before approval is given for land conversion.
Predetermining bumiputra lots is contradictory to the Federal Govt’s policy to widen the market and make housing products more marketable.
Is that all? No....no time to post all.