Answer for Oral Question PL144

QUESTION

Yang Berhormat Pehin Orang Kaya Johan Pahlawan Dato Seri Setia Awang Haji Adanan bin Begawan Pehin Siraja Khatib Dato Seri Setia Haji Md. Yusof

YANG BERHORMAT PEHIN ORANG KAYA JOHAN PAHLAWAN DATO SERI SETIA AWANG HAJI ADANAN BIN BEGAWAN PEHIN SIRAJA KHATIB DATO SERI SETIA HAJI MD. YUSOF asked MENTERI PEMBANGUNAN to state the effectiveness of the enforcement of the Housing Development Act 2012 in protecting buyers and landowners from the risk of abandoned projects or poor construction quality. What measures are being taken to ensure that developers comply with the stipulated timeframe in order to safeguard consumer rights against any losses?

ANSWER

Yang Berhormat Menteri Pembangunan

The Housing Developers (Control and Licensing) Act, Chapter 259, or Housing Developers (Control and Licensing) Act, Chapter 259, aims to regulate and license housing developers as a measure to ensure that developers are qualified and responsible, manage project accounts properly and comply with the directives under this Housing Developers Act.

It is an offence for anyone to undertake housing development without a licence, and such persons may be prosecuted and punished with a fine, imprisonment or both. This Act also provides for the establishment of the Housing Developers Board, chaired by the Permanent Secretary of the Ministry of Development, with members comprising representatives from the Government and private sector who have an interest in regulating housing developers, so that housing developments are constructed properly, with quality and safely, in accordance with the terms and conditions agreed upon by both parties.

With this Act regulating housing developers, homeowners or house buyers can be protected from irresponsible developers who cause losses to house buyers.

It should also be conveyed that although the Housing Developers (Control and Licensing) Act, Chapter 259, has been gazetted, it cannot yet be enforced as its regulations are still being prepared to support the comprehensive implementation of the Act. Insha Allah, when this Act is enforced, the setting of licensing fees will also need to be examined holistically in line with the objectives of this Act.

Pending the enforcement of the Act, the Housing Developers Board (BHD) acts administratively to encourage qualified developers to register with the Board, thereby enhancing the credibility of the developers’ businesses and giving the public confidence to deal with them. The list of registered developers, currently numbering 32, is published on the Ministry of Development’s website under the ‘Registered Companies and Professionals’ and ‘Housing Developers’ tabs.

To date, there have been 27 complaints against 12 unregistered housing development companies involving:

i. Housing developments that were not completed within the construction period stipulated in the agreement;
ii. Unsatisfactory house quality; and
iii. The absence of promised infrastructure facilities.

In addressing complaints of this nature, the Board will usually conduct separate interview sessions with the Complainant and the Developer to seek a resolution to the dispute faced. The Board also holds consultations with relevant stakeholders such as the Qualified Person (QP) and the authorities to address technical issues. Where appropriate, the Developer will be advised to fulfil their responsibilities in accordance with the terms and conditions of the agreement, or the complaint will be referred to the relevant Authorities, such as ABCi, the Land Department, DES, DWS and DOR, for enforcement action under their respective jurisdictions.

The Housing Developers Board wishes to remind the public that most of the complaints reported stem from non-compliance with the terms and conditions of the Agreement that has been signed. Therefore, the appropriate action to be taken by dissatisfied parties is to seek legal advice from a private lawyer in order to initiate court proceedings.

To avoid any confusion in land or house purchase/sale transactions, the public is advised to deal with registered Valuers / Real Estate Agents registered under the Board of Valuers and Estate Agents (BoVEA), Ministry of Development.