Malaysia Property News is a free resource website sharing Daily Property News & information about Property in Malaysia, which related to, Property Market, Property Investment, Commercial Property , Hot Properties Malaysia, Real Estate, Retail Shop, Business Park, Condominium Malaysia, Terraces & Apartment Malaysia, Houses, Residence, Resort and many more.

Monday, March 31, 2008

Rehda to work with new Selangor govt

PETALING JAYA: Property developers in Selangor have pledged their willingness to work with the state government helmed by the newly-appointed Menteri Besar Tan Sri Khalid Ibrahim, says the Real Estate and Housing Developers’ Association (Rehda) Selangor branch chairman Datuk F D Iskandar F D Mansor.

Iskandar, who believes business would go on as usual, also expects the new state government to encourage investments in the state.

“As Selangor is the most developed state, I believe the new Menteri Besar will continue to support investments and Rehda, as an NGO, will respect and work with the new state government,” he told theSun.

However, Iskandar highlighted a more pressing issue faced by developers in the state which is the shortage of construction materials, particularly cement and steel.

While welcoming the Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad’s recent call for the scrapping of price controls of essential items, Iskandar said if the move is extended to construction materials as well, it would certainly benefit the property and construction sector.

“Although steel prices are controlled at RM2,300 per tonne, an additional fee of up to RM900 still has to be paid out under the counter. Since there is a shortage of cement and steel, then we should do away with exports and allow for imports of these two materials. Let the market forces of supply and demand determine the prices,” said Iskandar. Rehda’s Selangor branch represents more than 300 developers in the state.

On the prices of properties, Iskandar noted that it has been increasing by as much as between 10% and 20% since the 2H2007. However, with the recent announcement by the Prime Minister that gas and fuel prices would be maintained, developers hope that the federal government would continue subsidising these items.

“With fuel prices rising, a hike in petrol prices locally will cause a domino effect that will be felt in all sectors. Consequently, prices are just going to go up. However, our purchasing power and disposable income are not rising in tandem with these increases,” said Iskandar. “On the developers’ end, we are facing the same issues as those faced at the national level, which is the rising cost of doing business,” he added.

Iskandar said that developers also hoped to see more improvements in the delivery system which would enhance competitiveness in bringing in foreign direct investments. Another concern which Selangor developers face since the 2H2007 is the levy imposed on them when the bumiputera quota for their development projects are not met.

“Although the national policy for bumiputera quota is 30%, some places in the state have higher quotas of easily 50% to 70%. There are certain areas that cannot meet such high quotas but can only sell 30%.

It is unfair that we are being penalised for the unresolved quota,” said Iskandar.

By theSun (by Loo Pik Kwan)

No comments: