1. Today (16/6/2009) the committee members of PHUKB (www.phukb.wordpress.com) met up with the Senior Officers of Jabatan Perumahan Negara in one of our many efforts to help 1800 purchasers to get their homes in Ulu Kelang. The Ukay Bistari project was launched in 2003 and after 6 years signs of getting our house is far from over. There are too many battles that we are facing and one thing that I can say is that the number of people that really cares about the fate of affected house buyers in the housing related industry is actually countable.
2. Ukay Bistari is a project under a company named Damai Bistari. Damai Bistari is owned 100% by Intelbest and Intelbest is legally own by 2 proxies. The actual owners are Tan Sri Chan Ah Chye and his wife. Unfortunately legally there are no relationships between Tan Sri and Intelbest or Damai Bistari but he is calling the shots in the company.
3. It is rather fortunate that DB purchasers are united under one association i.e. PHUKB. Over the last one year we have travelled to many offices. We have been negotiating, discussing and doing many other things in trying to get this project moving again. In Dec 08, we talked to the State Government and we got the state to assist in getting this project moving again.
4. Unfortunately, the system and the laws of the country do not really protect the purchasers. It appears the right of the developer is far supreme than the purchasers. The laws of the day protect developers more than house buyers. Those with power are sceptical about using them to help the purchasers. The individual purchasers stand on their own to fight for their rights. In most cases it is a fight akin to David Vs Goliath and in this case “David loss”
5. We went to JPN after we realized that under section 11 and 12 of the Housing Development Act, the minister has powers to protect the buyers. So far from my own research, the Minister has never invoked this particular section of the Act. We went to see JPN and trying to see on how the JPN can help us in solving our problems within the ambit of the Housing Development Act.
6. I came out from the meeting with a clear message to the officers of JPN. I am willing to go the extra mile in helping these house buyers. They have suffered enough. If I have to go to see the KSU or the Minister, I would do so. For now, I will give JPN a few days to sort things out.
7. While the National House Buyers Association has been pushing for built then sell (BTS) concept, this concept does not appear too attractive to the Developers. Almost everyone does not want to do it as it does not make financial sense to them. The HBA has been pushing this agenda for nearly 8 years but nothing has happened. Instead developers continued to misguide the purchasers with 5/95 or 10/90 financing schemes.
8. I did a bit of survey today and found out that majority of the abandon projects actually lies in Selangor. The Federal Government has reclassified the so called 500 projects that was previously categorize as abandon and problematic into four new classes. This new classes have made the number of projects that is affected is less than what it is suppose to be. Now, there are even talks of postponing the BTS scheme on the basis of economic downturn.
9. A quick survey will show that there are more than 300 projects that was abandon or delayed in Selangor. The financial implications to the purchasers are in billions of Ringgit. I believe it is high time that Selangor Government look at the interest of the house buyers seriously. It has to lead the way and to show that it really cares about the people. It has within its mean to push developers to do BTS. The State government as land development authority can enforce a condition where the developers must adopt BTS before they are given the necessary approval to built houses. They should not approve any development projects that are not under the BTS scheme.
10. As for the fate of nearly 500 abandon and problematic development in Malaysia it looks like the people has no where to go and they will continue to suffer in silence. In reality politicians only showed the sorry face and gave empty promises with minimal concrete remedial action. No one can help the purchasers unless the purchasers help themselves.
11. The time has come for the Selangor State Government looks at the issue of resolving the abandon housing projects in totality. It has to look from the aspect of introducing new laws, forming special purpose vehicle (SPV) under the state government with the necessary powers to get involved into existing projects which has delayed or abandoned. At the same time it must act to protect the consumer interest by ensuring that moving forward only BTS are allowed in Selangor.
12. On behalf of thousand of purchasers, I say enough is enough. It is time to act. Hear our cries and help accordingly.
Related Reading:
(1) National House buyer Association
(2) BTS Deferred – Ong Ka Chuan
(3) Housing Development Act (Act 118)
Please help us by signing the following online petition.
IMPLEMENT THE BUILT THEN SELL HOUSING SCHEME
All your money gone to build the previous MBs castle !
Tan Ah Chye again. Isn’t there an end to this man’s infamy? Name any badly developed project and he is behind it. Talam, Larut, Europlus and perhaps a dozen more. They are all known for big promises and a bigger let-down. Yet again and again he is approved state land, projects and housing developments in Selangor. He used to sit on the KDEB board; on what qualification only God knows; perhaps close connections with the previous MBs.
Ada orang kata pembeli yg salah kerana tiada buat survey sebelum beli (hehehehe mungkin itu olang manyak kaya )
Ada pula pembeli kata \”apa boleh buat sudah terbeli , silap kita juga tak buat survey ..haizzz\”
Tapi saya kata \”%@$ ^%#& *@&*^@&@#%@^@&#&&*@&*!@@&^@8 \”
300 projek rumah itu jikalau dikumpulkan pembelinya dan anjurkan tunjuk perasaan mungkin MEREKA yg BERKUASA nie baru nak dengar suara ORG SUSAH ini.
Agreed , purchasers suffer if projects are suspended beyond the delivery period and worst still when abandoned.
The current 5/95 and 10/90 financing schemes currently practised by few developers do not really protect purchasers when project become abadoned. The purchasers will still have to repay end financiers the principal on the loan taken . It is only the construction interest that is borne by developers.
In a true BTS , developers should take risk when projects become abadoned. Repayment of end financing loans should become the responsibility of developers whereby ownership of the abandoned properties revert to them. No purchasers want to own “not fit for purpose” properties.
This will limit developers to only the fittest financially and technically. No more ” fly by night ” developers who are linked to “powers of the day” whose interest is to make quick bucks at the expense of others.
Doc , your idea of State Government to impose BTS and help resolve abandoned projects, though highly recommended , is not possible under current statutes. The State deals only with land matters , DO , planning and building approvals.
JPN & KPKT at Federal level is the authority over HDA. There are clauses in the HDA to protect purchasers but never invoked by the Minister. There is no will on the part of the government officers to recommend deterrent actions against developers to protect interest of purchasers.
Purchasers are small flies and developers are big fish. Let the fish swallow the flies seems to be the attitude of the powers that be. Sigh !!!
Doc, if i remember correctly, Tan Sri Chan Ah Chye was the owner of Talam, the infamous developer who probably got the M’sian Guinness Record for the # of complains on their workmanship!