Press Statement: Why is the Government Ramming Through the Property Management Bill

PRESS STATEMENT: WHY IS THE GOVERNMENT RAMMING THROUGH THE PROPERTY MANAGEMENT BILL

The government is trying to ram through the Valuers, Appraisers and Estate Agents (Amendment) Bill 2017. The Bill was first read on 1st August 2017 (Tuesday) and debated on 3rd August 2017 (Thursday). The debate is set to continue on 7th August 2017 (next Monday). The speed at which this Bill is debated is highly suspicious and meant to catch Members of Parliament (MPs) unprepared.

It is also a controversial bill because it intends to regulate two distinctly separate professions: valuers and property managers. Valuers deal with property valuation, therefore rightfully falls under the purview of Ministry of Finance (MOF). On the other hand, property management is to do with organisation, management and maintenance of buildings and is under purview of Ministry of Urban Wellbeing, Housing and Local Government (KKBPKT).

In addition, the issues related to strata property management are to a large extent already regulated under the Strata Management Act 2013. This Bill, which intends to combine two different practices into one Act and place everything under the purview of MOF, is thus illogical. The more logical solution is to pass a standalone legislation that deals with property management and put it under the control of KKBPKT.

My office estimates that the entire property management fees for all residential, commercial, and office buildings in Malaysia amounts to RM1.8 billion a year. As such this is not a small industry, and that being the case, any legislation affecting it must be carefully considered. I therefore call upon all MPs to be extra vigilant when the debate continues on 7th August 2017.

In order to facilitate better debates, I demand the Finance Minister to immediately explain why this Bill is being rammed through just two days after it was first introduced. The bill essentially leapfrogged seven other prior bills.

I also demand the Finance Minister to explain what expertise he has regarding property management and why this industry should fall under his Ministry’s purview.

Lastly, he must also provide the macroeconomic and cost benefit numbers of this Bill. If he is adamant to continue to ram this Bill through Parliament this coming Monday, he must give an undertaking that his bill will not result in any increase whatsoever to property management fees.

YB Wong Chen
Member of Parliament for Kelana Jaya
4th August 2017

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