12 TELLING IT AS IT IS theSun | WEDNESDAY OCTOBER 28 2009

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Say ‘Tak Nak’ to

such clichés.
Are we giving promoters the impres-

Sell houses ready

‘tennis segera’
IN THIS column some years
ago, I made an observation: If
you dug a hole in front of your
house and threw in some
guppies, you could get a VIP
to officially launch it and it
would be declared a “tourist
attraction”. What I did not add
was that you could even get
million-ringgit grants from
the government. From watch
exhibitions to sports events,
the phrase “tourist attraction” CitizenNades is coming to town.
has been used to squeeze the by R. Nadeswaran
arms of our tourism “czars”
for money.
It was not surprising that a retired
police officer with “strong connections”
walked into Tourism Malaysia’s office
demanding RM10 million so that he
could open a booth at last year’s Beijing
Olympics. When he was politely shown
the door, one of the bosses remarked:
“Even my father does not like you.”
If you thought that the nonsense of
“investing” in sports activities ended
with the Champions Youth Cup (CYC)
where a “bidding” fee of RM17 million
was paid to the promoter which led
to the National Sports Council almost
breaking the bank, the queues are getting
longer at the Tourism Ministry. The key
weapons in the new operators’ armoury
are “project paper” and “surat sokong”.
Armed with these, all and sundry have
joined the bandwagon – spin doctors,
journalists and even sports officials – to
become sports impresarios. For a good
measure, the traditional name-dropping
game is used.
Last month, we had the Malaysian
Open ATP tournament and no one
knows how much the Tourism Ministry
doled out. Yet we talk about Key Per-
formance Index and Return on Invest-
ment. Of course, the reasoning that is
often given is that “the tournament will
put Malaysia on the world map.” Really?
Does anyone measure the returns on
million-ringgit investments? Except for
the VIPs who get the syiok sendiri feel-
ing of rubbing shoulders with the stars,
there’s nothing to show.
If you are talking about
attracting tourists, then the
promotions for the event
must have started a year
ago. But no, we can “create”
instant tourists. And after the
never-heard of CYC tourna-
ment which came to our
shores three years ago and
in which we lost more than
RM25 million, another circus
It’s called the Showdown
of Champions – Asia versus
Russia Grand Slam 2009.
Ever heard of it? No one had heard of
it previously. I Googled this tournament
and as of noon yesterday, there were just
two entries – both from the website of
the Lawn Tennis Association of Malay-
sia (LTAM). There were no such tourna-
ments previously and someone coined
the name of the tournament and for good
measure appointed a failed but good-
looking tennis star as “ambassador”.
Does she have to present credentials to
anyone? Probably not, since she has not
won a major singles title. Judging by the
posting on the website, even the LTAM
does not deem it important enough to
deserve better play. The posting dated
Sunday reads: Tennis fans will be in for a
treat as the Tourism Minister is scheduled
to launch the Showdown of Champions
2009 at the Pavillion Shopping Center
in Bukit Bintang at 10am tomorrow.
Also, a Russian female star will grace the
event and meet our junior players at the
National Tennis Center in the evening.
Four women will travel to Kuala
Lumpur with an entourage of coaches,
tukang urut and the lot (on first-class of
course) and we the taxpayers are sup-
posed to pay for their holiday. And we
are told that some tukang urut have also
jumped on the bandwagon.
Government departments and agen-
cies are not sports promoters. And for
one moment, do not use the phrase “it
will help promote tennis among the
youth”. We have had an overdose of
sion that Malaysians are a gullible lot?
Like trying to export snow to the Eski-
mos, many are looking East for vulner-
able people who are willing to part with
their money so as to enrich themselves
with all kinds of events. And we seem for occupation
to be suckers for punishment. No one
will have any qualms if promoters take
their money out of their own pockets
and take business risks. But when tax-
payers are asked to guarantee that such
events are not financial disasters, then
it takes a different dimension. If previ-
WE refer to the move to use
RM200 million of public funds
to revive abandoned housing
projects.
Such projects are essen-
tially failed businesses where
ously, government-linked-companies the business proprietors
were directed to do “national service” (developers) are no longer
by underwriting costs, they have now able to continue with their
turned to the government coffers, in this business (ie, to complete the
case, taxpayers’ money. houses that they had set out
At a time when the Tourism Ministry to build). Thus it is a situation
can’t even put its house in order with the of, “Profits privatised whilst
million-ringgit losses in “investments” losses are nationalised!” By
by its wholly-owned companies under the way, the RM200 million
the Pempena umbrella, why is it getting represents only a small
involved in areas which are alien to it? proportion of the total sum
The Tourism Malaysia and the required. In Selangor alone,
Tourism Ministry must come clean on it was reported that RM4-5
the sports events that they are funding. billion is required if the aban-
Taxpayers are entitled to know how doned projects in the state
much is being spent on and what kind were to be revived.
of returns can be expected. The reply But why does the govern-
can be envisaged: “Malaysia will be ment have to intervene and
mentioned four thousand nine hundred incur vast amounts of public
and two times during the telecast and we funds to revive abandoned
see this as valuable returns” but are we as projects? It is because the
gullible as they are? house buyers are suffering
Heads of government departments the effects of paying a lot of
and agencies are custodians of people’s money to the developers and
money. They have to be prudent and not getting their houses. They
the principle of “value for money” must have used up their savings
always be in their minds when spend- and continue to service the
ing it. While some will be labelled as loans. They also continue to
“kedekut” and refuse to part with taxpay- live in rented houses. Their
ers’ money without examining its impli- dream houses have turned
cations, there are many who are willing into nightmares. But how
to spend RM42,000 for a laptop. And the does this situation come
people at Tourism Malaysia have seen about?
similar transactions in the past; the time The main culprit is the
has come for them to be accountable for “sell-then-build” system of
their actions. payment when buyers buy
Now that the dozens of “aides” of the houses. The system compels
minister have found themselves in dif- buyers to make “progressive
ferent locations and no longer poke their payments” while the houses
heads into finance and administration, are being built. For those
it is time for Tourism Malaysia to stand who take housing loans, the
up and say: “We’ll not be a party to your banks would automatically
money-making schemes.” release the progressive pay-
ments until the full sum has
been paid. Such payments
While there are returns from events like are made according to
the F1, R. Nadeswaran feels that “instant” progressive claims made by
kucing-kurap tournaments should not be the developers, as certified
touched with a 10-foot pole. He is editor by their architects. The loan
(special and investigative reporting) at agreements even remove the
theSun and can be reached at: citizen- right of the borrowers to stop
nades@thesundaily.com. any payment even if they feel
that the construction stage
is not as claimed. There had
been cases of excessive
disbursements made when
Raub turns developers made claims in
excess of the construction
festive stage.
The National House Buy-
ers Association (HBA) has
I WOULD like to share my over the past few years been
experience of celebrating appealing to the government
Deepavali at my hometown to do away with the progres-
in Raub, Pahang, recently.
sive payment system and to
I was taken aback to see
adopt the 10-90 build-then-
so many banners displayed sell (BTS) system. Opponents
all over the town wishing of this proposal often cite,”the
Hindus Happy Deepavali. bigger picture”, arguing that
This included the political the 10-90 BTS will shrink the
parties, the district officer, industry because the smaller
the Public Works Depart- developers will go out of
ment and many other business while the big ones
government agencies. will downsize their projects;
Even the small shops that there will be shortages
which hardly take note of and house prices will go up
the festival had joined the by up to 50%.
bandwagon to have their HBA had adequately
banners displayed. rebutted all arguments. It is
Never in all my child- recorded in the Hansard that
hood days in Raub, has when Housing Minister Tan
the Deepavali celebration Sri Khaw Kai Boh was tabling
drawn such an attention. the first reading of the Hous-
After 52 years of Inde- ing Developers’ Act in Parlia-
pendence, Deepavali is ment in 1966, he faced similar
finally seeing the light in arguments. On that occasion,
this beautiful town of mine. the Opposition Leader, Tan Sri
It was a history lesson for Dr Tan Chee Khoon, in all his
me. wisdom, actually supported
the minister. The Act was
Sivachandralingam subsequently passed. The
Raub
various disaster scenarios
predicted proved nonsensical
and the housing industry has
grown by leaps and bounds.
I would like to further stress
that it is precisely for the
consideration of the “bigger
picture” that the system
must change. Only a flawed
system can bring about such
havoc to so many innocent
victims. If we do not phase
out the progressive payment
system, house buyers will
continue to face problems
in buying houses and the
tax-paying public will forever
have to shoulder the burden
of paying for the revival of
failed housing projects.
In the eyes of foreign
property investors, Malaysia
will continue to carry the
stigma where one can pay
for a property and not get it.
What more with the various
development corridors in the
pipeline. It is time we put our
house in order. Research by
Universiti Sains Malaysia in-
dicates that countries like the
UK, Australia, New Zealand,
Singapore and even Thailand
operate under various ver-
sions of the 10-90 BTS.
Contrary to popular
belief, the 10-90 BTS not
only benefits house buyers
but all parties in the housing
industry. Briefly, the benefits
are as follows:
» Bridging financiers’ collat-
erals will not be progressively
fragmented. Revival is less
complicated and speedier.
» Developers need not have
to rely so critically on their
sales to meet their cash-
flows.
» Joint-venture land owners’
interests are better protected
and there will be more land
owners who will be willing to
go into join venture partner-
ship with developers.
» House buyers are insulated
from the effects of project
abandonment. There will be
better quality houses and
less substandard materials
used because come payment
time, the buyers will conduct
a prior delivery inspection
with their developer.
» End-financing banks’ risks
are much lower as they now
finance completed houses
that are readily cashable in
the event of defaults.
» The government need not
have to get involved with
and spend vast amounts of
money to bail out what are
essentially failed businesses.
» The industry will be more
self-regulating with less
governmental policing and
enforcement.
The sell-then-build (STB)
progressive payment system
has outlived its usefulness
and is creating havoc in the
industry. The switch to the
10-90 BTS is long overdue.
Those who are in a position
but are reluctant to effect
this switch, are guilty of
dereliction of duty.
Chang Kim Loong
Secretary-General
National House Buyers
Association