MANGGATAL: The Sabah Housing and Real Estate Developers Association (SHAREDA) wants a speedy conversion of native title (NT) to country lease (CL) title to start their projects.
Its president, Chew Sang Hai said earlier conversion of NT title to CL title would facilitate the drawdown of bridging finance and enhance the liquidity and market their products.
“However, long delay of issuance of letter of offer by Lands and Surveys Department had hindered the progress of the land conversion,” pointed out Chew during a press conference at his office at Grand Merdeka Mall off Tuaran road yesterday.
Therefore, SHAREDA welcomed any changes in the legislation and administrative policy, said Chew when commenting on the announcement by Special Tasks Minister Datuk Teo Chee Kang that effective June 1, this year development plans (DP) will only be approved after the conversion of NT title to CL title is done.
Teo who chaired the steering committee for the review of subsidiary title & management stated circular will be issued to all local authorities and relevant government departments on the latest policy which was approved by the Cabinet last Wednesday.
Chew disclosed SHAREDA were consulted by the State government’s core working committee (CWC) and noted the proposed flow chart is no different from the present system except it has incorporated the requirements that NT titles ‘must’ be converted to CL before submission of DP.
He also insisted the CWC should meet at least once a year to study or review the effectiveness of the proposed system.
“This is differs with present system allowing developers to submit to Lands and Surveys Department for conversion of titles after the approval of DP.
“I recall this was agreed by SHAREDA at one of the meetings provided the premium be paid as a condition of the approval of the building plans (BP) not DP to tie in with the release of the bridging finance which normally requires DP approval as a pre-disbursement condition,” shares Chew.
According to him, the present system is a concurrent activity which is in-line with other activitiessuch as submission of BP which would not add working time to the flow chart.
The proposed conversion is an isolated and independent activity which would be more working time to the flow chart, he added. He said based on the World Bank’s ease of doing business index and dealing with construction permits by Malaysia Productivity Council, any unnecessary increment of working time in any flow chart would decrease our ranking in the world ranking to attract foreign direct and local investments.
And since the proposed flow chart also incorporated key performance indicator (KPI), he believed this would improve the government’s delivery system.
“But it would be fruitless if the KPI is not monitored and adhered by all government departments,” warned Chew.
“SHAREDA urges the State government to monitor and be transparent to enable the various departments to meet their KPI to achieve the objectives of the circular,” Chew stated.
He said SHAREDA has been advocating for the enhancement and improvement of real estate industry in Sabah as a transparent and shorter time for all submissions would lower holding cost for developers and faster delivery to all purchasers.
He asserted earlier issuance of subsidiary title and subdivided title as well as occupation certificate (OC) would allow the formation of management corporation and discard any misunderstanding between buyers and developers.
“It is not only relieve the developers’ burden but also reduce the cost of transaction in the secondary market,” he said.
Also present were its vice president Chai Meng Kong and assistant secretary general Chew Fei Sean.-MW/BNN