Putrajaya’s credibility has again dipped with housebuyers, especially since its Minister of Urban Wellbeing, Housing and Local Government, Abdul Rahman Dahlan made a reversal of the government’s promise to implement the “build-then-sell” (BTS) system of housing delivery in 2015.

It is not surprising, since Prime Minister Najib Abdul Razak himself has already set the precedence by withdrawing his promise, made before last general election, that he would repeal the Sedition Act 1946.

At the same time, the country has also seen how Najib had roped in Hindraf leader P Uthayakumar’s younger brother, P Waythamoorthy, with all sorts of promises just before the last general election. It took a while before Waythamoorthy woke up to the unfulfilled promises.

Now, the recent decision of Rahman ( left ), which critics see as going against the government's promise to implement the BTS system, will certainly not go down well with housebuyers, who often feel that they are at the mercy of the unscrupulous developers.

His decision to listen to developers, rather than to housebuyers, appears to strike a chord with a fellow cabinet member’s speech that said the government has helped developers to make money. One wonders, “Is this at the expense of the purchasers?”

'Keep your promise'

As for Rahman’s U-turn on the BTS system, a lawmaker and an activist have both said that they want the BTS concept to be implemented this year, as promised by the government, as it will protect housebuyers from irresponsible developers.

I believe other lawmakers will soon jump into the bandwagon, since this is one topic close to everyone’s heart. There is no doubt that it will become a strong point in Pakatan’s next general election manifesto.

According to the Hansard, Rahman’s predecessor, Chor Chee Heung ( right ), had said in February 2012 that amendments would be made to the Housing Development (Control and Licensing) Act 1966 to prepare for the mandatory implementation of the BTS system in 2015.

The first month of 2015 is drawing to an end, and when the question about the implementation of BTS was raised again, the minister’s response was non-committal. Judging from the reports, Rahman has even denied that the government had made the decision to implement the

BTS concept by 2015.

Within the past three years, the good developers have prepared themselves to embrace the BTS concept. Purchasers also welcomed the news as announced by Chor in 2012.

 

Now that the decision has been reversed by a new minister, it raises the credibility issue of both former and present housing ministers.

Does it mean that a cabinet minister can anyhow make a promise on behalf of the government, just to appease the people temporarily, for example, in the lead up to the general election? After a decision is made, can it simply be reversed, without taking into consideration the sentiments of the people?

According to Selayang MP William Leong, the present system of “sell-then-build” allows irresponsible developers, or those with inadequate financing, to gamble at the expense of the house purchasers.

The concept, he stressed, would protect buyers from bearing the brunt of the losses, should the developer's gamble turn sour.

The Hansard does not lie. “The Hansard shows the government has agreed to the BTS concept and the present decision not to implement it amounts to a reversal of the decision,” Leong said.

Meanwhile, National Housebuyers’ Association secretary-general Chang Kim Loong ( left ) said he is personally disappointed with Rahman’s decision. Where Chang is concerned, there is no such thing as a “minister’s point of view”, especially when he is a representative of the cabinet and the ruling government.

“Chor spoke in Parliament and this decision made by the government is clearly recorded in the Hansard,” Chang stressed. “Whatever the Minister of Housing speaks in Parliament is in an official capacity on behalf of the cabinet.

“This binds all ministers under the ‘Doctrine of Collective Ministerial Responsibility’. We are sure the current minister, Abdul Rahman Dahlan, is aware of this fundamental ministerial principle.”

Or, is Rahman not aware of this? In wanting to protect the developers, the minister risks being further ostracised for not looking after the interests of purchasers.

The benefits to purchasers

Chang argued that the BTS concept is a safer system and that banks may even consider lowering interests as risks of project abandonment would be largely diminished.

“Currently, the large number of abandoned projects in the country is tying up a large amount of dormant funds,” he said. “When this is reduced, financing costs can also reduce and the industry will benefit.”

Chang said that once the BTS 10:90 system is implemented, the developers will have to source their own project financing. “With this new arrangement, gone are the days when developers can get away with sub-standard houses, delays and project abandonment. The bullying attitude will cease. These are some of the reasons why developers are opposing the BTS concept,” he added.  

The BTS 10:90 system in HBA’s definition means paying a 10 percent deposit on a house purchase upfront, with the other 90 percent paid only upon completion of the house, along with all the certifications obtained.

Currently, it is possible for the developers to hand the keys to the purchasers, without even applying for strata titles. The problem of non-issuance of strata titles has long plaqued the local housing industry, and the ministry under Rahman has a complete list of developers that have already been blacklisted.

The question is, why would a cabinet minister elected by the people listen to some developers instead of the people? His decision will determine whether Malaysians will get to enjoy better houses built by developers - or we will continue to take vacant possession of houses, with anything from minor to major defects.

Part 1: Strata title still an issue for many apartments

   

Part 2: KL developing into a modern ‘slum’ city

   

Part 3: Revamp to councils can only begin at the PSD level

STEPHEN NG is an ordinary citizen with an avid interest in following political developments in the country since 2008.