Record 5,196 development projects implemented in 2023, Unfair to make landlords liable for tenants’ misdeeds and more
28th December – 2nd January
Housing and Local Government (KPKT) Minister Nga Kor Ming said a record 5,196 development projects have been implemented by the ministry in 2023, with a total allocation of RM700 million.
Meanwhile, property owners groups said making landlords liable for the actions of their tenants violates fundamental liberties provided under the Federal Constitution.
1. Record 5,196 development projects implemented in 2023
Housing and Local Government (KPKT) Minister Nga Kor Ming said a record 5,196 development projects have been implemented by the ministry in 2023, with a total allocation of RM700 million.
The projects were categorised into four main components – socio-economic, public facilities, security and infrastructure, reported Bernama.
The focus was on enhancing public infrastructure, such as drains, pavement, street lighting and road as well as public facilities like multi-purpose halls and public toilets. Attention was also given to socio-economic projects by upgrading markets, bazaars, and business premises.
Nga shared that a RM191 million allocation was also approved, of which RM48.8 million is set aside for the establishment of MyKiosk units, RM47.6 million for drainage projects and RM94.6 million for flood retention pond projects.
Looking ahead, KPKT will consider new projects for 2024 based on return on investment, credibility reliability index, cost-benefit analysis and feasibility studies to prevent ‘white elephant projects’.
The ministry targets for 5,000 yearly projects, expressing optimism that the MADANI government would be able to implement 50,000 projects if given the opportunity to govern for 10 years.
2. Unfair to make landlords liable for tenants’ misdeeds
Property owners groups said making landlords liable for the actions of their tenants violates fundamental liberties provided under the Federal Constitution.
Although a tenancy agreement must clearly outline the tenancy purpose and termination rights, they wanted the proposed Residential Tenancy Act (RTA) to address all concerns affecting both the tenants and landlords, reported The Star.
Datuk Theng Book, Chairman of the Strata Owners Association Malaysia, stated that it is unfair to place full liability on the landlord, noting the challenge in identifying potential criminal tenants.
He underscores the need for tenancy agreement to define the purpose of tenancy as well as the rights to terminate due to breaches such as illegal activities.
He noted that while landlords can report the illegal actions to the police, it is not the landlords’ duty to replace enforcement officers.
Theng pointed out that the RTA should address issues of liberties being infringed during its drafting.
In welcoming the RTA, Senior lawyer Datuk Joy Appukuttan suggested the creation of a tribunal that would adjudicate disputes between tenants and landlords.
“Such tribunals will be able to act swiftly and efficiently. If the landlord and tenant can represent themselves at these tribunals, then the cost would be lower,” he said.
3. Properties priced RM500,001 to RM700,000 is Klang Valley’s second biggest category of overhang units
Properties priced from RM500,001 to RM700,000 accounted for the second biggest category, or 15% of the total overhang units in the Klang Valley, said CBRE | WTW Malaysia Group Managing Director Tan Ka Leong.
Properties priced at RM1 million and above made up the biggest number of overhang units at 28%, reported the New Straits Times.
“I think a lot of developers are looking at a price bracket of about RM500,000 to RM700,000 and thinking it’s a sellable product, but the statistics don’t really tell that story,” said Tan.
With this, he urged developers to conduct more in-depth study to understand what contributed to the overhang situation.
Tan noted a 5% compound annual growth rate (CAGR) in residential property supply in the Klang Valley from 2018 to Q3 2023, with non-landed properties surpassing landed homes with an 8% CAGR versus 2%.
Transaction volume for landed properties in the Klang Valley fell 3% year-on-year to 9,916 units, while transactions for non-landed properties rose 11% year-on-year to 6,957 units.
Both segments saw a hike in transaction values, at 2% for landed properties and 22% for non-landed properties.
Nonetheless, Tan pointed out that Malaysia’s overhang property count is dropping, with a 12% year-on-year decline registered in the Klang Valley.
4. Klang residents upset over project opposite their homes
Residents of Lorong Mempelam in Klang are unhappy over the construction of a rubbish disposal area, substation and water tanks in front of their homes.
The land, owned by a social and recreation society, runs along the whole stretch of Lorong Mempelam and includes ongoing construction of a multi-storey building, reported The Star.
Residents are concerned for their safety and health given that the structures are being built close to their homes, with some houses just 1.5m away.
“Foul smell, insects and rodents are commonly found near rubbish…We are also worried about having a substation close by,” said Caryn Wong.
Tan Chun King noted that the construction could also affect the value of their homes, potentially leading to financial losses.
Residents have taken their complaints to the Klang Municipal Council (MPK), with lawyer Dinesh Muthal, Founder of People’s Legal Team, questioning how the project was approved considering its proximity to the homes.
Pandamaran assemblyman Tony Leong Tuck Chee spoke to the residents and landowners, urging them to arrive at a win-win solution.
5. KPKT gathering info on flood-hit homes
The Ministry of Housing and Local Government (KPKT) will assess the damage to homes affected by floods before providing support.
KPKT Deputy Minister Datuk Aiman Athirah Sabu explained that the ministry has to follow certain procedures before extending any form of aid to the flood victims, reported Bernama.
She noted that the programme to repair flood-hit homes is still ongoing and that it has not been stopped.
“What we see is that the Madani government is very focused on such matters (assistance). Although Kelantan is not in the federal government, it is still given attention,” said Aiman Athirah following a visit to the Kelantan Fire and Rescue Department (JBPM).
She shared that JBPM’s 495 Red Team personnel are prepared to assist flood victims in Peninsular Malaysia.
“This team will always be ready to assist flood victims and they will be assisted by other officers and personnel from the fire department and other rescue agencies. They will be able to provide immediate assistance as they are equipped with the logistics, including lorries and boats,” added Aiman Athirah.
