Housing developers in Penang are urging the Urban Well-being, Housing and Local Government Ministry not to punish private developers by delaying the approval of their applications for developers and advertising licences.

The Real Estate and Housing Developers Association’s (Rehda) Penang branch chairperson  Jerry Chan said the delay may be due to the BN-led federal government not being happy with the DAP-led state government for not approving federal projects in Penang.

Chan was referring to Penang’s delay in  approving seven housing projects by the Penang Regional Development Authority (Perda) and and eight projects by JKP Sdn Bhd.

Last year, Urban Well-being, Housing and Local Government Minister Abdul Rahman Dahlan is reported to have said that his ministry could also play a  'political game'.

Rahman ( photo ) had said he could also ensure that all applications for housing, including licences for occupational and safety certificates for all buildings in Penang, go directly to him for approval.

“But why are private developers caught in this situation? This is a fight between two elephants. We have no quarrel with the ministry,” Chan said at a press conference in Komtar in George Town today.

“Why are we penalised? Are we in a position to approve the projects? We are not,” Chan lamented. “If the federal government has a problem with the state, take it up with them, not us,” he added.

Chan said Prime Minister Najib Abdul Razak was aware of the matter since April this year but still no action was forthcoming.

Legal action being considered

He described the situation as 'sad and serious' as it does not merely affect commercial interests. Building contractors, company staff and buyers who plan to buy a house are also affected by the situation, he added.

Chan said whenever he contacted the ministry over the delays, the response was always the same, that either the applications were 'KIV' (Kept In View)' or 'Under Process'.

The normal approval process period for an application is two weeks.

Chan ( photo ) said the developers were leaving it to the Rehda headquarters in Kuala Lumpur to consider legal action against the ministry for the delay.

The state executive councillor in charge of  housing, Jagdeep Singh Deo, said the ministry’s actions towards the developers in Penang were “cruel”.

Jagdeep said one of the developers whose licences were delayed was Zubicon, which was supposed to build affordable housing in Penang.

“The action deprives Penangites of affordable housing as well,” he said.

“We have written to the ministry several times on this matter, with the last time being on June 24, but there has been no reply at all,” Jagdeep said at the same press conference with Chan.

Minister's disservice to country

He said it was wrong for the ministry to penalise private developers for Penang’s non-approval of Perda and JKP projects in the state.

“We have yet to approve the projects because we cannot accept the pricing of some of the units proposed to be built, which are beyond the affordable price tag.

“Some of the units are built on acquired land and we need to know how the companies will deal with the land acquisition, including handling existing squatter problems,” Jagdeep ( photo ) added.

Chief Minister Lim Guan Eng said the affected projects, which have yet to obtain the developers and advertising licences, are worth billions of ringgit.

Lim, who was also present at the press conference, said Malaysia prides itself in being known as a country where it is “easy to do business”.

He added: “But it will no longer be competitive if word gets out that this is happening.

“With the current economic situation Malaysia is in, with the falling value of the ringgit, Rahman is doing a great disservice to Malaysia by withholding the approvals of the licences.”