Commercial development act on the cards, KPKT says

However, this would not be immediate as the ministry may need about 2 years to study the act

By FARA AISYAH / Pic By ISMAIL CHE RUS

The Housing and Local Government Ministry (KPKT) is currently looking into drafting a commercial development act for commercial properties to be standardised.

KPKT National Housing Department DG Jayaselan Navaratnam (picture) said this move would be able to provide a guideline for purchasers, developers and those involved in the commercial segment.

“We are currently studying on a commercial development act. We see a need for a guideline because we have to manage commercial developments well.

“We also need to standardise the sale and purchase agreement for commercial properties. In case of claims and defects, they do not have a specific place like a tribunal to go and they have to go the courts,” Jayaselan told reporters at the Affordable Housing Conference 2018 inKuala Lumpur yesterday. “So, we see the need to standardise the rules in the market to provide security for purchasers and comfort for all related parties.”

However, he said the implementation would not be immediate as the ministry may need about two years to study the act.Meanwhile, he added that the ministry targets to introduce a new data entry system for developers by next year.

The new online form system is a collaboration between KPKT and the National Property Information Centre (Napic) under the purview of the Finance Ministry’s Valuation and Property Services Department that aims to collect and compile the data under a single authority.

“The plan to streamline data between KPKT and Napic is still at an initial stage, we have yet to come to an agreement. We are currently adjusting the beginning and end points of our data collections. For example, KPKT collects data from the moment developers apply for the development licence, while Napic collects data from the moment developers received the development orders, so there is a difference between the two parties.

“We hope to sort it out by end of this year, and roll it out by Jan 1, 2019, for the first run,” he said.