HBA applauds Pemudah’s efforts towards cutting down bureaucratic red tape

• The National House Buyers Association (HBA) acknowledges the challenges faced by Economy Minister Rafizi Ramli in implementing the NDFB, which will entail the Government’s commitment in resolving issues to improve the business environment by addressing structural and situational challenges especially when dealing with bureaucratic red tape, inefficient regulations and undue regulatory burden faced by investors and businesses in Malaysia

The Government, through the Special Task Force to Facilitate Business (Pemudah) platform, is drafting a document entitled “New Deal for Business” (NDFB) to boost business confidence, stimulate economic growth and drive national digital transformation, reported the Business Insider recently.

Economy Minister Rafizi Ramli (pictured) said the implementation of NDFB is in line with the Madani government’s aim “to put Malaysia amongst the 12 most competitive economies in the world as well as increase Malaysia’s Business Confidence Index this year and in the coming years”.

The document is expected to be presented to National Economic Action Council in March, followed by the implementation of a few pilot projects before its launching in June 2024, said the report.

The National House Buyers Association (HBA) acknowledges the challenges faced by Rafizi in implementing the NDFB, which will entail the Government’s commitment in resolving issues to improve the business environment by addressing structural and situational challenges especially when dealing with bureaucratic red tape, inefficient regulations and undue regulatory burden faced by investors and businesses in Malaysia.

Similarly, our rakyat too face many unnecessary bureaucratic obstacles and inordinate delays, but we are pleased to note that some of them have been overcome through Pemudah under the Malaysia Productivity Corporation (MPC) secretariat.

We list here its achievements relating to the property and housing sector, and HBA’s response on them:

1. Cessation of sale of pre-printed bank forms

The documentation fee for housing loan borrowings has been abolished by local banks following a “notice of cessation to all banks” from Bank Negara Malaysia (BNM). Consequently, banks and financial institution have directed their branches to “cease charging a fee relating to the provision of housing loan or home financing documentation for financial customers”. Previously, documentation fees of between RM100 and RM600 for housing loan borrowings had always been charged by banks before this directive was issued.

(Read: HBA applauds BNM’s order to abolish loan documentation fees)

2. MDI agents to charge only RM500 for the ‘last mile’ task

The Malaysian Department of Insolvency (MDI) has agreed with effect from Sept 26, 2022 to rein in the private liquidators, especially the agents appointed by MDI. Henceforth, fees shall be pegged at RM500 for functions that relate to undertaking the “last mile”. Private liquidators were previously exorbitantly charging owners an “administration or vetting fee” of between 1% and 3% of the original purchase price or the sale price in a sub-sale for performing the functions of a defunct developer. 

(Read: Govt halts exorbitant fees by MDI-appointed agents)

3. Vacant Possession (of property) with strata titles

There have been enough cases of distressful consequences experienced by property owners when their developers have deliberately failed, neglected or refused to apply for and transfer strata titles to purchasers, even when the latter have paid in full.

Finally, the Government has heeded our recommendations to close the floodgates and resolve the issue. It was serious enough for the Government to enact new statutory provisions, amend existing ambiguous laws (to plug the loopholes) and repeal redundant sections of the Acts to achieve this much-needed transformation.

(Read: New law: Strata titles should come with vacant possession and Time to make ‘strata titles with vacant possessions’ a reality)

4. Registration of individual and strata titles at land offices

Not so distant years ago, the registration of individual titles (reflecting change of ownership) at the land offices takes about three months whilst registration of strata titles could take about six months.

With the intervention of Pemudah, dealings and registrations to effect ownership now only takes a one-day process at the land offices. Even during the Covid-19 pandemic, our land offices were still able to transact the dealings without any fuss though there were delays of up to seven days, which was acceptable to us.

5. Valuation, adjudication and stamping of instrument of transfer (MOT: Form 14A)

The Valuation and Property Services Department (JPPH) and Stamping Offices were remarkable in coming up with the one-day rule. It means that all valuation and adjudication by the JPPH and issuance of stamping notices by LHDN strictly complied with the one-day work chart to ensure that there were no delays in the collection of revenue for the Government. These processes have facilitated the work schedules in property transactions and are a welcome move for the housing industry.

The above are some of the pertinent matters that have been resolved to a satisfactory conclusion. There are many more that are in the pipeline and have been highlighted to the technical committees of Pemudah.

We shall endeavour to hold to the Government’s commitment in resolving issues to improve the business environment through the Government Technology or GovTech Malaysia method. HBA will highlight the positive outcomes from time to time.

HBA will continue to work alongside in collaboration with Pemudah in facilitating business, whether local or foreign.

This article and press statement is written by Datuk Chang Kim Loong, the honorary secretary-general of the National House Buyers Association (HBA). HBA is a voluntary non-government and not-for-profit organisation manned wholly by volunteers.

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