REHDA Comments on the 10th Malaysia Plan

Petaling Jaya, 14 June 2010

REHDA congratulates the Prime Minister of Malaysia, YAB Datuk Seri Najib Razak, for laying down the fourth pillar of the Government administration—the 10th Malaysia Plan, which is the final leg out of three others, namely the 1 Malaysia ideal, the Government Transformation Programme and the Economic Transformation Programme. The 10th Malaysia plan is premised on the main goals of high-income, inclusivity and sustainability for the next five years.

National Key Economic Area

The Association expresses its disappointment that the property and construction sector has not been included as one of the priority sectors in the national key economic areas (NKEA).

This omission indicates that due recognition is not being accorded to the industry which has played a pivotal role in contributing to the national GDP since its formation. Not only so, but the sector has also indirect influence on the economy via its close linkages to up to 140 sectors and sub-sectors.

Affordable Housing

REHDA lauds the move to streamline the affordable housing delivery system under a single federal agency to provide 78,000 units of housing for the next five years. The Association is confident that with this move, the housing needs of the lower income group will be sufficiently provided for by the public sector.

REHDA hopes that with federally-funded housing, the requirement for developers to provide low-cost housing will no longer be necessary. Meanwhile, developers will continue to contribute towards the country’s social agenda by building low-medium cost housing for the rakyat.

Foreign Workers

The Association supports the Government’s plans for a foreign labour policy reform to decrease reliance on foreign unskilled “cheap” workers. However, we appeal to the Government to continue giving due recognition to such foreign workers in the building sector until IBS is sufficiently incentivised and fully adopted.

The new levy system to regulate the entry of unskilled labour should not be punitive to the industry, and we suggest that the levy for the building sector be put on hold until IBS is under full swing.

En-bloc sale mechanism

The Association thanks the Government for putting in place an en-bloc sale mechanism to facilitate the sale of collective-owned developments to allow urban rejuvenation. This is encouraging for private developers who wish to participate in redevelopment of ageing urban areas.

Build-then-Sell

REHDA is also heartened that the Government will be encouraging developers to adopt Build-the-Sell approach through incentives rather than making it mandatory.

Green Rating System

The Association recognises the importance of “green” buildings to the sustainable future of the nation. However, REHDA is of the view that green incentives should be applicable to all accredited rating systems, and not to a specific index.

Issued by:

Datuk Ng Seing Liong, PJN, JP
拿督黃騰亮 太平局紳
President
Real Estate and Housing Developers’ Association Malaysia