NCCIM calls for extension of time for ongoing housing projects

KUALA LUMPUR (March 31): Voicing concerns on the impact of the Movement Control Order (MCO) on the property sector, the National Chamber of Commerce and Industry of Malaysia (NCCIM) has urged the government to consider allowing an extension of time especially for ongoing housing development schemes.

Alternatively, it suggested, it could allow for a waiver of Liquidated Ascertained Damages (LADs) arising from the delay of works at site caused by the MCO and other COVID-19 supply chain issues.

In a statement released today, it said the proposals were raised at a meeting with Finance Minister Senator Tengku Dato’ Sri Zafrul Tengku Abdul Aziz today on the plight of the business community, especially SMEs in coping with the impact of the COVID-19 global outbreak. The discussion was led by NCCIM President, Tan Sri Datuk Ter Leong Yap.

“NCCIM is deeply concerned that the property sector which is expected to stay sluggish for a longer period now given the sharp economic downturn.

“The stubborn overhang in the property sector will have a reverberating effect on the economy given that property is an important sub-sector of the construction sector.

“A protracted consolidation and over-adjustment in the property sector would drag down the overall construction sector. With the construction sector supporting the growth of around 140 other downstream industries, a sustained weak growth would have ripple effects on the economy,” it said.

It also called for the Real Property Gains Tax (RPGT) to be rated back to zero percent for the disposal of properties held for more than five years and a special waiver on RPGT (upon eventual sale by the buyer) for all properties bought in 2020 up to March 31, 2021.

It also proposed that foreigners be allowed to purchase any Malaysian property (excluding affordable housing schemes) while the Home Ownership Campaign (HOC) should be extended for another year until Dec 31, 2021 with stamp duty exemptions, to further encourage home ownership and help reduce the number of unsold houses.

NCCIM also called on utility companies such as Indah Water Konsortium Sdn Bhd (IWK), Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Telekom Malaysia Bhd (TM) and Tenaga Nasional Bhd (TNB) to reduce capital contribution charges by 50% since developers are already mandated to lay infrastructure at development projects.

“Moreover, the developers provide these utility companies with new customers whenever they have new developments. This also helps to reduce the cost of doing business, the savings can be passed on to house buyers in the form of more affordable houses,” it said.

Furthermore, it said the Ministry of Housing and Local Government (KPKT) should expedite the Approval of HDA Account (Regulation 9) Excess Money Release, (Pengeluaran Wang Lebihan, Peraturan 9) in less than one month instead of the two to four months presently while the LPPSA (the Government Loan Department) should release payment to developers in less than two weeks instead of three to five weeks presently. 

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