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Main Content Sell and Build

Main Content Sell and Build

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Published by ramu velusamy
The sell and build or build and sell method
The sell and build or build and sell method

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Published by: ramu velusamy on May 05, 2011
Copyright:Attribution Non-commercial


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Malaysian housing industry has a big role to play for the country and society withits direct impact can be seen thoroughly into the economic and social side if the housingindustry does not function properly. A lot of individuals see house as a major needs andconsider it as one of their biggest and most expensive investment of their lifetime. Thehousing industry in Malaysia is not as bad as some other countries in the other part of theworld. At the very least, Malaysia is not a country who believe the housing industry issomething which should be going by the market force like the American. If the Americanscenario will occur in Malaysia, it is for sure the housing industry in Malaysia woulddefinitely be facing numerous of problems especially in producing affordable andsufficient house to the people of Malaysia. Housing has been highlighted its importancein Malaysia when the government choose to intervene the market instead of letting themarket force alone control the housing production industry. Thus, it brings out the notionof public sector involvement in the housing industry.With the concern of the public in mind, this has shown that the Malaysiangovernment recognized the importance of housing as a basic human need. It is importantto notice that the government should play its role well in providing adequate, affordableand sufficient housing to the public. Policies have been formulated in order to ensure theabove statement can be fulfilled and achieved by the government. This is in line withIstanbul Declaration on Human Settlement and Habitat Agenda (1996) to ensure adequateshelter for all. (Shuid, 2004) However, the government is not the side solely responsibleas for housing where the public and private sector, both has their own roles to complywith. The public sector mostly deal with low cost housing and private sector will dealwith mostly medium cost and high cost houses development but with an agreement withthe government that the private sector must contribute 30 % of low cost housing as wellfor every housing development projects.(Ghani & Lee.LM; 1997) All this is toaccommodate the 28.25 million populations in Malaysia. (Department of StatisticMalaysia, 2010)Through the Malaysian Seven Plan (1996-2000) and Malaysia Eight Plan (2001-2005), the plan is to provide adequate houses to all of its population, with special interest
towards the low income group. (Shuid, 2004). This has been a national issue for severaldecades. There are several housing policies in Malaysia which was created in order toaddress the problem of housing and solving issues related to it. Policy are been created inorder to solve problem by created by certain sector and not causing for complication andissues to it. The cases with Malaysia are with certain policy imposed, the more issues itwould bring out. One of the most common policies related to housing in Malaysia is policy about housing ownership and the procedure of owning a house.The issue brought up by the Sell then Build policy has been on the surface for several decades. In Malaysia, owning a house is not an easy task as it would explainfurther in a later part of this essay. Hence, it can be very frustrating to the buyer and public whenever there are a lot of malpractices in the housing industry in Malaysia suchas defective houses, shoddy workmanship, delay and even abandonment of project due tothe practice of Sell then Build policy by the developers in Malaysia.(ISIS Study Team,1997)
2.Housing Policy and Housing Development in Malaysia
To be in general, as the Malaysian government is separated into the federal andstate, the federal is not the only one responsible for housing supplies in Malaysia, as thestate government and local authority has their parts to play as well. The Malaysian lawhas enacted a few laws to look after or to be a guideline for housing development inMalaysia such as National Land Code 1965, Malaysian Land Acquisition Act 1960,Town and Country Planning Act 1976, Environmental Impact Quality Act, Street,Drainage and Building Act 1974and Malaysian Building By-Law as well. This has shownthe Malaysian government is serious in their aspect of housing development and producing affordable and sufficient houses supply to the country. The housing need must be fulfill by the government. Housing needs in this context is defined as the Quantity of housing that is required to provide adequate housing to the population without taking intoconsideration individual household’s ability to pay (Chander,1976;Ratcliffe,1981; Noraini,1993;Golland&Gillen,2004 cited in Alias, Johar & Ho ;2008)The Malaysia Plan has incorporated housing policy in their plan from as early asthe 1
Malaysia Plan (N. Idrus & Ho ;2008). This clearly shown the government hasshown commitment towards addressing the issues of housing with the focus on demandand supply of affordable house for the population in mind as early as 1966(during the 1
Malaysia Plan). All this housing policy formulated in the Malaysian plan has its ownobjective to achieve such as in table 1.Under various Malaysia Plan as in table 1.0 , the clear things to be notice is thatthe housing in Malaysia is a government intervention type and not solely based on marketforce. All the initiatives in the various Malaysia Plan has enable sufficient affordablehouses been built in the country. However, various edition of plan has different target andobjective such as low cost housing for low income group, basic human settlementconcept, housing for low income group in urban area with various strategies such asinvolvement of private sector in providing low cost housing, set the ceiling price for lowcost houses and low medium cost houses, guidelines and new laws set to control privatedevelopers, and other strategies as well.

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