Slide 1

WHAT IS A DEVELOPMENT?

• Development, in terms of land, property or real estate, is a

complex process of coordinating various activities to
transform ideas and plans into physical reality.
• Development is a much wider process than
construction, which is principally the building of
something such as a house, tunnel, bridge, etc

designingbuildings.co.uk

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Slide 2

Defining development
• "development" means the carrying out of any building,
engineering, mining, industrial, or other similar operation in, on,
over, or under land, the making of any material change in the
use of any land or building or any part thereof, or the
subdivision or amalgamation of lands; and "develop" shall
be construed accordingly;

Town and Country Planning Act 1976

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Slide 3

Categories and scope

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Slide 4

What is a development?

• Housing development
• "housing development" means to develop or construct or cause to be
constructed in any manner whatsoever more than four units of housing
accommodation and includes the collection of moneys or the carrying on of
any building operations for the purpose of erecting housing accommodation
in, on, over or under any land; or the sale of more than four lots of land or
building lots with the view of constructing more than four units of housing
accommodation;

HOUSING DEVELOPMENT (CONTROL AND

LICENSING) ACT, 1966

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Slide 5

Terminology
• Development plans
• Development charges
• Development proposal reports

HOUSING DEVELOPMENT (CONTROL AND

LICENSING) ACT, 1966

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Slide 6

Important of development

• serve as a barometer Indicating the nation’s economy condition

• brisk construction activities point generally to the
• direction that the nation’s economy is booming and sluggish
construction activities will mean that the country’s economy condition
is depressing
• the wellbeing of a country is reflected in its people enjoying a certain
standard of living

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Slide 7

•provision of social services and amenities as well as

economic activities necessary for the attainment of
better quality of life, national integration and unity.

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Slide 8

Economy

• being a major potential for expanding the construction industry,

generating jobs and contributing to capital formation.
• the activities generated in the construction industry will in turn
generate or cause activities to generate in other industries thus
producing a chain of economic activities affecting the Malaysian
economy as a whole

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Slide 9

Who is a developer?
An entrepreneur who provides own organization and capital
required to complete the building and expects profit as a
return

Typically, developers purchase a tract of land, determine the

• Housing developers
convert on-paper
ideas into housing
products
(Anikeef & Sriram, 2008)
marketing of the property, develop the building program and
design, obtain the necessary public approval and financing,
build the structures, and rent out, manage, and ultimately sell
it (Frej et al., 2003)

• chief coordinators that construct

residential dwellings for sale and
• project initiators profit.
Jaafar et al. (2014)
(Maruani & Amit-Cohen, 2011).

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Slide 10

Developer = Client = Employer = The person or body who

commissions the project and is the eventual paymaster

Public Sector – provide facilities to the public Private Sector – generate highest profit

Federal Government (i.e., Kem.Kerja Developers (i.e., MK Land, Guthrie, Sime

Raya,Kem.Pelajaran); :State Government UEP)l; Owners (i.e., TNB, Petronas);
(i.e., PKNS); ‘Statutory Body’ (i.e., MARA , Investors (i.e., Banks, KWSP)
Felda)

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Slide 11

A property developer is a professional in the sector of property

development, also known as real estate development. The property
developer is developing an area or townships to create a positive legacy for
communities to live well and thrive. The responsibilities of a property developer
are numerous and may vary from one job to another. Some of the responsibilities
of a property developer include purchasing land for new buildings,
signing leases for existing properties, improving and renovating
existing buildings and selling properties.
Some of the property developer in Malaysia listed are Eco World Development
Group Berhad, Gamuda Land, IJM Land Berhad, IOI Properties Group Berhad,
Mah Sing Group Berhad, Naza TTDI Sdn Bhd, S P Setia Berhad, Sunway Berhad,
Tropicana Corporation Berhad, United Malayan Land Berhad (UMLand) and Sime
Darby group.

(Ab. Sani et.al.,2017)

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Slide 12

Function of developer?
✓ Determining development ✓ Arranging finance
✓ Acquiring development approval
potential - Authorities requirement
Inception and feasibility study
✓ Ensuring project is built -
Construction, constructability

✓ Acquiringdevelopment
Land matters
(i.e., Land Acquisition, Land
Conversion, sub division,
amalgamation)
site -
✓ Arranging sale or rental of development
- Sales and marketing

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Slide 13

Housing developer
• Minimum number is 5 units.
• if a developer were to build a three-storey building where the ground floor is a
flatted factory, the first floor is a shop premise and the second (top) floor is an
office, the project will not be governed by the Act. Consequently, the purchaser
of such properties will not be protected
Definition Scales of development
small-scale 5–49 houses
medium-scale 50 –200 housing units
large-scale developers > 200 units

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Slide 14

A developer must..

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Slide 15

LICENSING OF HOUSING DEVELOPER

Section 5, Act 118 - A housing
developer needs to obtain a
developer’s license (DL) from
Ministry of Urban Wellbeing,
Housing and Local Government
(KPKT)

Section 6, Act 118 - The conditions or restrictions for the grant of a

license are:
1. Paid up capital of not less than RM 250,000.00
2. Deposit of not less than RM 200,000.00 with the controller
3. Applicant has not been convicted of an offence involving fraud
4. Applicant is not bankrupt
5. Applicant has not been convicted for an offence under the Act and fined
exceeding RM 10,000.00 or imprisonment
6. Applicant is not a director or licensed housing developer which has been
wound up by a court

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Slide 16

LICENSING OF HOUSING DEVELOPER

Act 118, Section 3: Housing Development (Control & Lisencing 1966)

Housing Developer Housing Development Housing Accommodation

• Any person, body of
persons, company, firm or
society (by whatever name
described), who or which
engages in or carries on or
undertakes or caused to be
undertaken a housing
development, and in a case
where the housing
developer is under
liquidation, includes a
person or body appointed
by a court of competent
jurisdiction to be the
provisional liquidator or
liquidator for the housing
developer
• To develop or construct or
cause to be constructed in
any manner whatsoever
more than four units of
housing accommodation
and includes the collection
of money or the carrying
out of any building
operations for the purpose
of erecting housing
accommodations in, on,
over or under any land; or
the sale of more than four
lots of land or building lots
with the view of
constructing more than
four units of housing
accommodations.
• Includes any building,
tenement or messuage
which is wholly or
principally constructed,
adapted or intended for
human habitation or partly
human habitation and
partly for business
premises and such other
type of accommodation as
may be prescribed by the
Minister from time to time
to be a housing
accommodation.

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Slide 17

DEVELOPER’S LICENSE
Section 5, Act 118 - A housing
developer needs to obtain a
developer’s license (DL) from
Ministry of Urban Wellbeing,
Housing and Local Government
(KPKT)

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Slide 18

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Slide 19

Developer License & Advertising Permit Developer License

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Slide 20

‘Construction Project life cycle’

Operations & Maintenance

Project Management Management
Client Project Manager Facilities/Maintenance/Operations Manager

Design Process Management

(Consultants/S.O.) Construction Contract Management
(Contractor) Defects Liability Period
(DLP)
DESIGN OR PRE-
CONTRACT STAGE CONSTRUCTION
Tender Award Handover OCCUPANCY
Feasibility study Decommissioning
Construction Management
Design Development (Construction Manager/Site Manager)
Documentation &
Tendering

(Construction Costing)

(Project Costing)

(Life Cycle Costing)

Sales &
Marketing

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Slide 21

Typical Project Management Activities (Traditional

Procurement System)
Initiation Planning & Execution Monitoring & Control Project Closing
Pre-Contract/Design Stage Construction
INCEPTION/CONCEPTUAL DESIGN DEVELOPMENT CONSTRUCTION PROJECT
TENDERING
STAGE STAGE STAGE CLOSE OUT
STAGE

Initiate the
(Construction
project Tender Site
Detail Documentation Management)
Project Design Specifications Testing &
Brief and Time Commissioning
Viability
Appoint
Consultant Cost

Quality Project
Authorities Tendering
Handover
Site
Approval/
Investigation Conceptual Detail Cost Health & Safety
Planning
Design Estimate
Permission

Environment
Project Defects Liability
Tender
Planning Period (DLP)
QSHE Evaluation
(Project Management
Objectives) Budget & Planning
Preliminary Processes
Cost Estimates Project
Monitoring

Time Cost
Tender Award
Value Contract Final Account
Quality H&S management/ Administration
Elemental Cost
Environment Analysis

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Slide 22

(1)*
• Progress
• Time
• Cost (2)*
Design Construction • Quality • Contract Sum
• Health & Safety • Claims & Payments
Quality Planning & Control • Environment • Variations
Process Detail • Extension of Time
• Determination
Design & Specifications
Environmental Planning & • Completion
Control Process Monitoring & Control • Etc.

Health And Safety Planning & Control Contract Administration (2)

Authorities Approval
Process

Administer Value Management Project Monitoring Project

Start Success or
Conceptual Design
Financial Control Failure
Preliminary Estimate Process
Tender
Award Testing &
Project Brief & Project Financial Commissioning
Viability Tender Hand Over
Project DLP • Developer /Owner
Initiate the Evaluation
Implementation PLan Tender Management • Valuer
project & Control Exercise Managing Operations And • Research Firm
Tender Documentation Maintenance Plan Processes •Financial Advisors
Procurement strategy
• Architect
• Engineers
Inception Tendering Close Out • QS
• Town Planner
• Other specialists

Activities at every phase of project

• Regulatory body
• Facilities manager
• Supplier
• Contractor

development

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Slide 23

Land matters

Liaison with consultants

Approvals

Construction

Strata title, Vacant Possession, MOT

Closing

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Slide 24

National Land Code (NLC) 1965,

Government Act 1976 (Act 171),

Uniform Building By-Law 1984 (UBBL),

Environmental Quality Act 1984,

Local Government Act 1976,

Act for Street, Drainage and Building Act 1974 (Act 133),

developer Town and Country Planning Act 1976 (Act 172),

Town Planning Act 1995,

Housing Developers (Control and Licensing) Act 1966,

Strata Titles Act 1985,

Fire Services Act 1988, and

Sewerage Services Act 1993,

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Slide 25

“to protect the

interest of
purchasers”.
Why do we
have law?
Giving aid and
comfort to
developer

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Slide 26

Knowledge area for developer

• Procedures in Acquiring Developer’s License and
Advertisement Permit:
Procedures for Land Acquisition:
• Application for a developer’s license.
• Type of land ownership.
• Application for a sale and advertisement permit.
• Guidelines for land acquisition.
• Facilities provided in portal MHLG.
• Identification of strategic land.
• Direct purchase vs. joint venture (JV).

Terms and Conditions for Property Development

Terms and Conditions for Property Development
Approval:
Approval:
• Application for planning approval.
• Application for planning approval.
• Application for land conversion and subdivision.
• Application for land conversion and subdivision.
• Building and infrastructure plan approval.
• Building and infrastructure plan approval.

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Slide 27

Knowledge area for developer

Housing Sale and Marketing Strategy:
• Recognizing the housing market through statistical
data. Cash Flow Analysis:
• Marketing mix— the 4Ps principle (product, price, • Factors that affect project viability.
promotion, and place). • Feasibility analysis.
• Convincing people to purchase. • Cash inflow and cash outflow.

Project Implementation and Control:

Bank Financial Loan Facilities: • Procedures and types of contract.
• Funding facilities provided by banks. • Progress and performance report.
• Preparation of a working paper. • Monitoring your project.
• Application and claim conditions and procedures.
• End financing for purchasers.
• Conditions of offer.

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Slide 28

THANK YOU
For Your Time

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