Pragmatic Measures To Boost Malaysia's Property And Economy
13/04/2007 Bernama

KUALA LUMPUR, April 13 (Bernama) -- The government's bold and pragmatic move to further improve the public delivery system for property will certainly enhance business efficiency and facilitate development of the property market in particular and the Malaysian economy in general.

Property players and observers largely believe that the government's latest initiatives to introduce four approaches to improve the public delivery system is not only a boon for the property market but will also improve further Malaysia's investment climate.

The Real Estate and Housing Developers Association (REHDA) commended Prime Minister Datuk Seri Abdullah Ahmad Badawi's efforts in introducing clear mechanisms and gazetting the necessary legislation to improve the delivery system for the property industry.

REDHA president Ng Seing Liong said with a strengthened legislative environment, developers and industry players should be able to conduct business with confidence which in turn will also benefit house buyers amid efficiency in the system.

"REHDA is confident that with these initiatives, professionalism in the industry will improve and thus enhance the competitiveness of the nation," he said.

Public Bank chairman Tan Sri Dr Teh Hong Piow said the four approaches announced by the government will further improve business and investor confidence in Malaysia as a preferred destination for trade and investment.

"The government certainly has raised the bar of excellence of the public service delivery system in Malaysia which will support the country's economic development," he added.

RAM Consultancy Services's managing director and chief economist Dr Yeah Kim Leng said: "Both foreign and domestic investors, spoilt for choice in terms of countries to invest in, are now looking more critically at the cost and ease of doing business.

"With these initiatives, especially if the one-stop centre can achieve a faster turnaround in processing applications and licences, we can expect Malaysia's investment climate to improve sharply in the coming years."

Property developer Mah Sing Group Bhd group managing director Datuk Leong Hoy Kum said the company is very upbeat about the far-reaching, positive effects that the smooth implementation of the fast-forward approval process will bring about.

"The faster approval processes will be a boon for developers as speedy approvals will lead to lower holding costs, translating into better efficiency in the use of capital.

"These savings can in turn be passed on the end-users, the house buyers, and thus be a win-win situation for all parties," he said.

The government today announced that it will set up a one-stop centre to cut the approval time for property development projects to between four and six month from the current 1-2 years.

Association of Finance Companies of Malaysia chairman Datuk Seri Tay Ah Lek said the one-stop centre to shorten the approval time for developers to construct buildings is commendable.

"With reduced processing time, there will be significant improvement in business efficiency and productivity. This will reduce the holding cost of developers which can be passed on to consumers," he added.

Metro Kajang Holdings group managing director Datuk Eddie Chen Lok Loi said with various initiatives in place, Malaysia has positioned itself to be as competitive as others.

"We will be able to compete on the same footing as places like Hong Kong where their property market in booming. This will put us on the radar screen of international investors and people looking for good properties and real estate investments," he added.

Sunway Group founder and chairman Tan Sri Jeffrey Cheah said the utmost importance now is to ensure the "follow-through" and implementation of the initiatives to achieve the desired results.

"I hope everybody will do their best and ensure the implementation is done properly," he added.

-- BERNAMA