Property management

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Design engineers at fault in landslide tragedy, act against negligent engineers

August 31, 2019 — rightways

Design engineers at fault in landslide tragedy | The Star Online

https://rightways.wordpress.com/wp-content/uploads/2017/10/8723e-penang2blandslide_tanjung2bbungah1.jpg

GEORGE TOWN: The State Commission of Inquiry (SCI) tasked with investigating the Tanjung Bungah landslide in October 2017 has found the design engineer of the slope primarily responsible for the incident that claimed 11 lives.

The SCI, in its 116-page report made public, has recommended that the engineer be investigated by the police under Section 304A of the Penal Code for gross negligence.

Besides the engineer, the commission found another design engineer responsible for being “contributorily negligent” for allowing excavation to be carried out without design, engineering calculations and supervision.

Chief Minister Chow Kon Yeow said the commission found that the slope failure was a man-made tragedy and entirely preventable if those in charge had taken necessary and proper steps to ensure the stability of the slope and the safety of the workers.

“The landslide did not develop overnight, it was a disaster waiting to happen over a period of time.

“There were ample warnings which were sadly unheeded or inadequately heeded,” Chow said of the report at a press conference at his office in Komtar here yesterday.

Chow said the report, dated July 22 this year, was a result of public hearings conducted over 26 days with testimonies from 28 witnesses.

“The commission also considered voluminous documents, reports, photographs and drawings, as well as the opinions of six expert witnesses.

“The report provides further analysis of the background facts, excerpts of testimonies recorded during the hearings and findings on liability against several parties,” he said.

The commission also found the Occupational Safety and Health Department negligent for failing to take adequate steps to ascertain the extent of the danger posed by the unsafe slope, by not promptly issuing a prohibition notice after its visit to the site on Aug 18, 2017, which was two months before the fatal incident.

Chow said copies of the report would be sent to the police, Attorney General’s Chambers, Board of Engineers Malaysia and other authorities involved.

“The report also contains nine recommendations that the commission hopes will serve as guidelines and prevent such incidents from recurring,” he added.

On Oct 21, 2017, a temporary slope in the construction site of a high-rise apartment block in Tanjung Bungah collapsed while workers were trying to stabilise it. Tonnes of earth crumbled, killing 11 workers.

The full SCI report can be bought at Level Three, Komtar, for RM50 per copy between Sept 3 and 30. For more details, call 04-650 5480.- Source link

Chow: Agencies have to act against negligent engineers

Penang chief minister Chow Kon Yeow

GEORGE TOWN: It is up to the relevant agencies to take action against the consultant engineers who were found negligent, resulting in the Tanjung Bungah landslide tragedy, says Chief Minister Chow Kon Yeow.

“It is up to the agencies and the police to take action as recommended by the State Commission of Inquiry (SCI).

“I have also directed the Town and Country Planning Department, Penang Island City Council, Seberang Prai Municipal Council and other related agencies to come up with recommendations to improve hill development.

“It was discussed at the State Planning Committee meeting and I have directed state housing, town and country planning and local government committee chairman Jagdeep Singh Deo to head the committee and come up with the recommendations within a month, ” said Chow at Komtar here yesterday.

It was reported that the SCI tasked with investigating the Tanjung Bungah landslide in October 2017 had found the design engineer of the slope primarily responsible for the incident that claimed 11 lives.

The SCI, in its 116-page report made public, had recommended that the engineer be investigated by the police under Section 304A of the Penal Code for gross negligence.

Penang Island City Council engineering director A. Rajendran, who was also present at the press conference, said the stop-work order on the project was lifted after the developer completed mitigation works.“However, different engineers have been overseeing the project since work resumed some time ago, ” said Rajendran.

On Oct 21,2017, a temporary slope at the construction site of a high-rise apartment block in Tanjung Bungah collapsed while workers were trying to stabilise it.

Tonnes of earth crumbled, killing 11 workers. – Source link

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Landslide tragedy caused by slope instability, was a Construction mishap, not landslide!

June 27, 2019 — rightways

Video:

https://www.thestar.com.my/news/nation/2019/06/27/pwd-tragedy-caused-by-slope-instability/?jwsource=cl

Earth patch: Workers covering the landslide area with canvas to prevent more soil erosion in Tanjung Bungah.

Construction mishap, not landslide’

GEORGETOWN: The incident that claimed four lives at a beach resort in Tanjung Bungah was a construction mishap, said Penang Island City Council (MBPP) mayor Yew Tung Seang (pic)

He said that the slope was unstable due to digging activities as the resort’s owner was building a retaining wall without informing the authorities.

“It’s not a landslide. The incident occurred after the retaining wall collapsed within the resort’s premises.

“We need to be informed of any construction activity and make sure that it is done under the supervision of engineers.

“We are monitoring the situation closely before making a decision on whether to stop the resort’s operations,” he said at a press conference after the launching of the Karpal Singh Digital Hub at SK Sungai Gelugor yesterday.

On Tuesday, four foreign workers were buried alive in a freak accident at the construction site in Tanjung Bungah.

It is learnt that the resort owner recently contracted a Myanmar worker to build a retaining wall after finding that the hill separating the resort and Jalan Batu Ferringhi showed signs of erosion.

The contractor hired three other Myanmar nationals to assist him.

Checks found that the retaining wall, which was supposed to be about 5m wide, had yet to be built but there were other retaining walls beside it.

State local government committee chairman Jagdeep Singh Deo said mitigation works along the 50m stretch of Jalan Batu Ferringhi would be completed in three to four weeks’ time.

“Although the incident happened on private land, it has affected the federal road where many heavy vehicles pass by every day.

“It is important to stabilise the road to ensure the safety of road users,” he said.

Meanwhile, Citizens Awareness Chant Group adviser Yan Lee called on the MBPP to reveal its standard operating procedures for investigating illegal earthworks done in the state.

“I hope that the council can share with us how many officers or workers are available to check on such earthworks,” he said.

Source link

GEORGE TOWN: Soil movement due to slope instability is said to be the cause of the freak landslide that claimed four lives at a beach resort in Batu Ferringhi, says Penang Public Works Department (PWD) director Shahabuddin Mohd Muhayidin.

He said preliminary investigations showed that the slope was unstable as a result of digging by a third party.

“The digging at the slope caused soil movement with a whole lot of earth coming loose.

“Right now, we are taking the necessary steps to stop further soil erosion at the slope.

“After this, we will install sheet piles to stabilise the slope,” he told reporters at a press conference in Komtar yesterday.

Following the landslide, Chief Minister Chow Kon Yeow had ordered PWD to conduct a thorough study of Jalan Batu Ferringhi to check on conditions of the road and slopes along the 15km stretch.

“If the study finds any of the slopes or roads unsafe, repair works will be carried out following recommendations from the study.

“For now, a 50m-stretch of the road leading to Teluk Bahang has been closed for mitigation work and to ensure the safety of road users.

“The mitigation work is expected to be complete within three to four weeks, and in the meantime, a flagman will be assigned at the road stretch to direct the one-way traffic,” said Chow at the press conference.

He said the state had no information on the status of the Myanmar workers who died in the incident.

“Relevant authorities will need to investigate the landowner and project owner so that appropriate action can be taken.

Chow said they have called on the police and government agencies like the Department of Occupational Safety and Health to investigate the and take action against those responsible.

“From monitoring at the site, we believe the works to build the retaining wall were carried out without professional help.

“It was just action taken by the landowner who wanted to fix a condition on the site. And, due to the way the work was carried out, it caused soil movement and eventually the soil collapsed.”

He said PWD and the Penang Island City Council (MBPP) would continue monitoring the issue.

“In this incident, the landowner should be responsible as he or she is responsible for monitoring the land.

“Although the landowner tried to take the initiative to build the wall, professional help should have been sought to ensure safer and more secure work.”

MBPP mayor Datuk Yew Tung Seang said the council would serve notices to the landowner and other parties concerned under Section 70A of the Street, Drainage and Building Act 1974.

“MBPP is investigating, and will take appropriate action against the parties involved.

“Although we have a team monitoring illegal construction, the construction work on this particular site was not visible to public view.”

Yew advised landowners to apply for permits before embarking on any construction work in future.

Source link

Experts: Human error could have led to landslide

GEORGE TOWN: A landslide which occurred even when there was no rain to trigger it might have been due to many reasons, including human error, says an expert.

Universiti Sains Malaysia geotechnical engineering professor Prof Dr Fauziah Ahmad said the workers may have dug at the toe of the slope while trying to build a retaining wall.

“During the digging process, pressure might have been released from the top of the wall, which could already have had cracks.

Prof Fauziah said traffic vibrations could also trigger pressure and cracks on the wall.

“Once there are cracks, water will seep through over a period of time, and when it reaches the instability between backfill and the wall, the slope will collapse,” she added.

Prof Fauziah was asked to comment on the incident on Tuesday where four foreign workers were buried alive in a landslide at a construction site in Batu Ferringhi.

Universiti Teknologi Malaysia Centre of Tropical Geoengineering director Prof Dr Edy Tonnizam Mohamad said the stability of a slope, among others, depends on its soil properties, slope geometry, volume, effect of gravity and also the pore water pressure.

“A slope could fail if one or a combination of factors passed its equilibrium and factor of safety.

“If the geometry of a slope is not properly designed according to geologic, engineering and climatic factors, a slope failure could occur.

“There have been several cases of landslides even when there was no rain,” he said.

Prof Edy added that to prevent such incidents, monitoring and inspection before and during construction is important.

“Professional supervision is also needed at the construction site.

“During construction, the standard operating procedure should be made clear.

“The construction site should be managed properly and safety procedures adhered to,” he said.

‘Owner built walls on his own’

Earth patch: Workers covering the landslide area with canvas to prevent more soil erosion in Tanjung Bungah. — MUSTAFA AHMAD & ANDY LO/The Star

GEORGE TOWN: The owner of a resort along Jalan Batu Ferringhi may have been building walls on his own to prevent soil erosion for some time before a landslide struck, killing four foreign workers.

Penang Works, Utilities and Flood Mitigation Committee chairman Zairil Khir Johari said there were signs of such efforts but the authorities had never been informed.

“It appears to me like he had been doing it on his own, without informing the authorities,” he said.

Attempts to contact the resort owner for comments were futile as of press time.

On Tuesday, four foreign workers were buried alive in a freak landslide at a construction site in Batu Ferringhi at 9.21pm.

George Town OCPD Asst Comm Che Zaimani Che Awang said all four bodies had been recovered.

He added that three of the victims were discovered in a standing position while holding the metal poles for the retention wall while the other was leaning over.

He said the victims did not have any identification papers.

It is learnt that the resort owner had recently contracted a Myanmar worker called Ong to build a retaining wall after finding that the hill separating the resort and Jalan Batu Ferringhi showed signs of erosion.Ong then hired three other Myanmar nationals, to assist him.Checks found that the retaining wall, which was to be about five metres wide, had yet to be built but there were other retaining walls beside it.

The exposed slope has been covered with tarpaulin sheets to prevent further erosion.

Read more:

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Introduction to Slope Stability | Soil Mechanics

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Five challenges young Malaysians face with home ownership

March 31, 2019 — rightways

For many young Malaysians, the road to owning a home is riddled with speed bumps. — Pexels

PETALING JAYA, Feb 26 — Most would agree that you truly reach adulthood the moment you own your own property.

Just like any other major milestone in life, getting there comes with its own set of challenges that many young Malaysians have to overcome before they can successfully purchase a home.

Here are five hurdles Malaysian millennials might encounter on the path towards home ownership:

1. Worrying about making the wrong choice, when is the ‘right’ time to buy?

Purchasing a home can be a major decision that many Malaysian youths feel overwhelmed by. — Pexels pic

Making the decision to buy a piece of property is a huge step that young locals aren’t quite brave enough to take yet.

Social news website SAYS’ 2019 Malaysian Home Survey among 8,568 Malaysians reports that one in five respondents had “(worries) about making the wrong decision”, especially since home ownership requires a hefty financial investment.

2. Unsure about loan application and loan rejections.

Do you have enough saved up for a home in the future? — Pexels pic

A difficult loan approval process is a huge factor that dampens many Malaysians’ prospects of owning a home.

PropertyGuru’s Consumer Sentiment Survey in 2017 states that 33 per cent of Malaysians reported a tough approval process for bank loan applications which presents a major roadblock on the path to home ownership.

3. Starter salaries, not enough money saved for a downpayment.

The average Malaysian needs to plan carefully if they want to own a house with their current salary. — Reuters pic

The thought of dealing with a mortgage on the salary of a fresh graduate is making many millenials think twice about owning a house.

The Employee’s Provident Fund statement in 2016 had said that 89 per cent of the working population in Malaysia earn less than RM5,000 monthly, making home ownership especially challenging.

Most millenials wouldn’t believe that they could own a house with that salary.

4. Renting or owning?

It’s not easy maintaining a modern lifestyle when you’ve got a mortgage weighing on your shoulders. — Unsplash pic

The hefty financial commitment to owning a home means young Malaysians will have to make some lifestyle changes if they want to stay afloat while having a house to their name.

This might mean foregoing luxuries such as weekend brunches and holidays overseas which have become staples for the modern generation.

Hence, a monthly instalment replacing these pleasures is the reason 33% of Malaysians in SAYS’ survey are saying ‘no’ to home ownership.

5. Lack of awareness on housing deals and promotions.

Housing deals and offers don’t seem to be showing up on the radars of young Malaysians. — Unsplash pic

While initiatives are in place to help young potential homeowners, many do not even know about the resources available to them that can ease the burden of property ownership.

A shocking 65 per cent of Malaysians in SAYS’ survey said that they had no clue about current housing offers and promotions.

This means that many young adults are currently unequipped with knowledge about navigating the property market.

In light of this, property developers EcoWorld have launched HOPE (Home Ownership Programme with EcoWorld), a comprehensive solution that promises to aid young Malaysians in their journey towards owning their dream home.

HOPE aims to make the dream of home ownership a full-fledged reality for millennials with the STAY2OWN (S2O) and HELP2OWN (H2O) programmes.

S2O will allow those wanting to stay in an EcoWorld project to rent their ideal home first with the confidence that they can become homeowners in the future.

A low monthly payment similar to the market rental rate also makes it particularly attractive for first-time homebuyers.

The option to rent first before buying also gives customers ample time to get their finances in order before committing to a new mortgage.

To top it all off, the rental savings will be used to offset part of the purchase price of the home, making it even more affordable for young Malaysians.

The H2O had successfully helped approximately 1,800 young homeowners and upgraders own their choice EcoWorld home last year and you can be one of them too! For more information on owning your dream home, visit EcoWorld’s website https://ecoworld.my/hope/) or Facebook (https://www.facebook.com/EcoWorldGroup/).

By Tan Mei Zi The MalayMail

* This article is brought to you by EcoWorld. https://ecoworld.my/hope/

A NEW HOPE FOR YOUR DREAM HOME

Are you overpaying your property maintenance fee?

December 1, 2018 — rightways

A property, no matter how great-looking it is, is only as good as its management and maintenance. It will look clean and polished when it is new but the good news is, it can still look as good even as it ages.

According to the Strata Management Act 2013 (SMA 2013) which came into effect in June 2015, a strata owner or occupier needs to pay a monthly maintenance fee or service charge to the Joint Management Body (JMB) or Management Corporation (MC) which will be used to manage and maintain the common property of the development.

Other than the maintenance fee, strata owners are also required to contribute to the sinking fund which is normally at the rate of 10% of the total amount of charges.

“A sinking fund is a reserve fund collected from the strata owner for future expenditure which is typically less predictable and cost a lot more than the usual maintenance fee. The sinking fund is usually used for large scale repairs such as a painting job or refurbishment of the interiors of common facilities,” says Chur Associates managing director Chris Tan.

However, some owners may feel that the maintenance fee is too much. But how much is too much? How is the fee amount calculated or set? Is there a formula or a guideline?

Formula to derive the share units

Under the SMA 2013 and Strata Titles Act 1985 (STA), a residential or commercial unit is technically known as a parcel and each parcel has a share value that is expressed in whole numbers under the STA.

“Upon the approval of computation and allocation of share units prepared by the licensed land surveyor, the director of Land and Mines will issue the Certificate of Share Unit. To derive the share units in a strata scheme, there is a standard formula under the Fourth Schedule of the Strata Titles Rules 2015,” explains Burgess Rawson Malaysia managing director Wong Kok Soo.

The standard formula for maintenance fee:

Refer to Table A for an example of how the share unit is derived for an apartment parcel.

What does the maintenance fee cover?

The MC chairman of Sri Penaga, one of Bangsar’s oldest condominiums, Khaw Chay Tee shares with EdgeProp.my that one of the biggest components in the operations expenditure of a residential condominium is security, followed by the property management staffing and cleaning.

“Normally these components make up 50% of your service charge. So at the end of the day, it really boils down to how well-managed that property is. If you are able to manage the property well, then you can keep the cost reasonable. There are some condominiums where the MC likes to carry out projects which incur costs, but that is a separate matter. As each condominium differs in its number of facilities and the density of the development, it is not so easy to compare and ask why this condominium in Bangsar is different from that condominium in Bangsar,” says Khaw.

Knight Frank senior executive director Kuruvilla Abraham concurs that the service charge will vary depending on the service level the JMB or MC requires.

“One can find cheaper options for the various services required which no doubt will result in lower service charges. However, don’t expect good service levels. The right thing to do is to get value-for-money services that commensurate with the expected service levels,” he says.

It also depends on the design of the development, he adds.

“The development with a reasonable number of facilities and a greater number of units will generally pay a lower proportion of service charge compared to one with similar facilities but with lower density.”

Furthermore, developments with more facilities such as fountains, gardens or swimming pools would naturally command a higher fee as more maintenance is needed.

When it comes to maintenance, the level of quality is subjective, reminds Chur Associates’ Tan. Hence, questions often arise on whether what they are paying is actually put to good use.

Kuruvilla points out that he has yet to come across a developer that has charged parcel owners more than what they are supposed to pay. (Photo by Knight Frank)

“What is the definition of “clean” to you? For some, clean means I don’t see any rubbish. For others, it means it has to be squeaky clean and sparkling. We cannot even come up with an industrial standard for door size and window size, how do we even budget the cleaning cost then? If I were the cleaning company, how would I charge you if your windows are bigger than others? Do I charge more? Or can I say the unit price is RM2 per window per cleaning [regardless of size]?” Tan questions.

He adds that the priorities of residents in different projects mean the maintenance fee charged for each development would be different.

“Some residents place a lot of emphasis on security, so they would rather [the JMB or MC] spend more money hiring guards from a prestigious company while there may be some who think that [the JMB or MC] should spend the money to clean the swimming pool daily because they use it often,” he explains.

Wong: To derive the share units in a strata scheme, there is a standard formula under the Fourth Schedule of the Strata Titles Rules 2015. (Photos by Low Yen Yeing/EdgeProp.my)

The problem with a low maintenance fee

The Malaysian Institute of Property and Facility Managers (MIPFM) president Sarkunan Subramaniam tells EdgeProp.my that problems often arise when the property developers set a lower-than-normal maintenance fee in the initial period to induce sales.

“During the first two years, the equipment is still under the defects and liability period, so if say, the swimming pool has an issue, you can just call the technician to come over for free. However, when the JMB or MC takes over when the warranty period has passed, cost will start to be incurred,” says Sarkunan.

Under the STA 2013, developers are not supposed to pass on any deficits or liabilities to the JMB and MC.

Chur Associate’s Tan says problems can also crop up later when a developer designs a very over-the-top facility or development but prices the property at a low selling price, hence attracting the wrong user/buyer profile to the project.

Sarkunan: Problems often arise when the property developers set a lower than normal maintenance fee in the initial period to induce sales.

“If I ask you what you want in your development, you will surely say you want everything. But nobody tells you that in order to have everything, moving forward, the monthly contribution will be higher. When the entry point is low, everybody wants to buy but nobody thinks about the maintenance fee in future.

“On many occasions, it is not about who gives the best facility but who is paying for it. Are you going to use it? How often do you go to your condo’s gym or would you rather go to a gym outside? Why? Maybe because you have your own personal trainer or you don’t want to be seen by your neighbour. So are we overdesigning and overproviding?” Tan questions.

In accordance with the Strata Management Act 2013 (Act 757) (SMA), developers shall hand over the maintenance and management of the strata development (common property) to the JMB not later than 12 months of vacant possession or the MC, should the strata titles be issued and transferred to the purchasers, whichever is earlier.

The items developers are required to hand over include the list of assets, fixtures and fittings, as-built plans, operation manuals as well as the audited accounts of the service charges, deposits and sinking fund as prescribed under the SMA via Form 4 (for JMB) and Form 13 (for MC).

The JMB and MC can then decide by votes or by appointing a registered property management company to suggest an amount for the maintenance fee.

“The owner has the right to request to see the accounts during the Annual General Meeting related to expenditure and raise the matter during the meeting,” says Knight Frank’s Kuruvilla.

However, he points out that he has yet to come across a developer that has charged the parcel owners more than what they are supposed to pay. In fact, the chances are higher that due to non-payment, the management account is likely to be in deficit resulting in there being insufficient funds to carry out proper maintenance and management of the development.

The problem with strata living is, everybody wants to have a well-maintained place to live but not everyone is prepared to pay for it.

“This is why the government passed the Strata Management Act 2013 (and Acts before this) so that after one year post development, it will give the parcel purchasers/proprietors the opportunity to manage the property and thereby giving them an understanding by getting first-hand knowledge in what it takes to maintain and manage a development well. Until one is directly involved, one will not be able to appreciate why service charges have to be paid on time to ensure there is sufficient funds to pay for the maintenance and management of the development.”

This story first appeared in the EdgeProp.my pullout on Nov 30, 2018. You can access back issues here..
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Separate role for property managers

October 29, 2018 — rightways

KUALA LUMPUR: Malaysian Institute of Professional Property Managers and Facility Managers (MIPFM) is suggesting property and facility management to be treated independently from valuation.

President Sarkunan Subramaniam said the bias towards valuers had to stop if property management is to progress in today’s fast-changing digital and technology capabilities.

“I urge the Board of Valuers, Appraisers, Estate Agents and Property Managers to reconsider its decision and listen to the professional bodies.

“Giving a property management licence to one who has no or little experience in property management is dangerous,” he said.

Sarkunan was speaking at the MIPFM Conference 2018 on Bridging Property Management and Facility Management.

He said the current real estate degrees are skewed towards valuation subjects. Those who trained in predominantly valuation-based companies have little to no experience in managing properties.

Government valuers, having passed valuers test, are automatically handed the property management licence.

Sarkuanna, himself a valuer, is calling for objectivity. He said the diverse range of office buildings, mixed integrated projects and stratified residential projects must be matched with parallel top grade maintenance. Or their value may suffer.

“I will get a lot of opposition for my views but this is for the good of the real estate sector,” he said.

Sarkunan also highlighted the rife corruption in this field. “Corruption in procurement, kickbacks and side money is so prevalent that it has rusted performance, bringing many buildings to a grinding halt,” he said.

Sarkunan related the tale of two office blocks in Bangsar where seven out of its nine management committee (MC) members have resigned, the chairman among them.

Those who resigned were from Tower A, which the developer had earlier sold to private individual owners. Tower B belonged to the developer who had put the building under a real estate investment trust.

There was a cash surplus in the accounts. It seems that during the period when the developer was managing the property, the developer apportioned all surplus monies collected to the tower they retained. When the MC took over, it faced a defiant developer.

The Commissioner of Buildings has directed an extraordinary general meeting to be held.

In another case, a developer refused to pave the way for a joint management body (JMB) to be formed because it wanted to control the money collected, Sarkunan said. COB stepped in to resolve the issue.

Transparency International Malaysia president Datuk Seri Akhbar Satar said fraud and corruption is common due to the variety of goods and services involved.

Satar said that in 2010, Palm Court Condominium residents alleged that about RM144,000 was misappropriated. The committee agreed to take “appropriate measures” but refused an independent audit.

On Jan 31, 2017, members of a JMB were arrested by the Malaysian Anti-Corruption Commission for allegedly misappropriating RM1.5mil.

Satar said cases like these highlighted the need for a culture of integrity and transparency.

– The Star by Thean Lee Cheng

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Don’t let developers take control, councils told

October 3, 2018 — rightways

Do not let developers take control, deputy minister tells councils

KUALA LUMPUR: Property developers are behaving more and more like local councils, Deputy Housing and Local Government Minister Datuk Raja Kamarul Bahrin Shah said, noting that this has given rise to the current form of townships that are not centralised and are dominated and led by private developers.

There are developers who are acting like local councils as the latter have not been taking the lead, and this is a cause for concern, he said.

Raja Kamarul noted that traditionally, the local governments were the decision makers but this fact has changed of late.

“Long ago, it was the local government that determines what developers should build, creating markets, shopping malls, commercial, industrial, agricultural and entertainment areas, and of course, knowing how many homes need to be built because they know the population in the area,” he said in his keynote address at the opening of the one-day Housing and Property Development Colloquium on “Reimagining the Housing and Property Industry in the New Malaysia” here yesterday.

“But now, the role has shifted to the developers, giving rise to the current form of townships that are not centralised and are dominated and led by private developers,” he said.

“Most concerning is the recent trend that developers are behaving more and more like the local council themselves, in having their own private security for substantial portions of residential and commercial areas as an example, and other provisions of services and infrastructure.

“Although the local governments retain power and control where their approval is needed to build, they have often failed to take a more proactive role,” said Raja Kamarul.

He also highlighted that some local governments have failed in providing basic services to the people, causing developers to step in to fill the void.

“Local governments must find the will and desire to see their own town, cities and districts develop into comfortable townships and not allow developers to take entire pieces of land and create their own defacto privatised local government,” he said.

He also said this is why the government is looking to bring back local government elections, in order to bring back a sense of accountability by local governments.

“Once constituted, citizens can take leaders of the local government to task when services and facilities are not up to par. This should lead to more tangible and improved living conditions for the rakyat,” added Raja Kamarul.

Credit: Ahmad Naqib Idris The Edge Financial Daily

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Putting our house in order

July 15, 2018 — rightways

WITH the announcement of the new Housing and Local Government Minister, Zuraida Kamaruddin, there have been a lot of news and interviews on her proposals to put our housing industry in order.

Her new plans will help create a new housing environment in our country if well executed. I particularly like the minister’s assurance that there won’t be any political intervention in decision-making, especially in housing development matters.

The key objective of the ministry is to synchronise all affordable housing schemes under one roof with the establishment of the National Affordable Housing Council, which is expected to be announced in August.

The streamlining will involve four agencies, Syarikat Perumahan Negara Bhd, 1Malaysia Civil Servants Housing Programme (PPA1M), Rumah Mampu Milik Wilayah Persekutuan (RumaWIP), and 1Malaysia People’s Housing Scheme (PR1MA).

With this prompt move, the housing ministry will have better control over the construction of affordable houses, and will attempt to resolve the mismatch between market supply and demand in certain housing segments.

Apart from the new supply, we should also look at our current housing supply. As at end-2017, we have 5.4 million houses, of which 21% or 1.15 million were low-cost houses and flats. This should be sufficient to accommodate the critical housing needs of our Rakyat if they were allocated to the right group of people.

In my last article, I mentioned that there were potential leakages in our previous distribution system that had caused the failure of qualified applicants to buy or rent a low-cost home.

In early June 2018, the new Housing Minister requested owners of People’s Housing Projects (PPR units) who were renting out their units to foreigners to evict their tenants within 90 days.

It is important for the authorities to carry out surveys on residents of low-cost housing after certain grace period to ensure the ownership and tenancy of government housing fall into the right hands.

By addressing the current leakages and with the identification of the right target audience, the issue can be quickly resolved.

Our new government plans to set up an online platform for application of affordable housing in the future. This would be an effective way to gather market demand based on the actual requirement and ensure greater transparency in the allocation process.

In addition, the government promises to build one million affordable homes within 10 years. It also suggests the housing price for the B40 group (with a median monthly household income of RM3,000) to be around RM60,000, and equipped with basic facilities such as a park and a community hall.

Based on the contributing factors of housing development which include land, the approval process and resources, only the government can build houses at the price of around RM60,000.

Only the government can gather land bank through compulsory land acquisition of agriculture land, then to convert the land for housing development, and increase housing projects with public funds.

As taxpayers, I believe we are more than happy to help elevate the living standards of the B40 group knowing very well that our money is well-spent in making a difference for the future of our nation.

I applaud the new government for taking the bold measures in putting things in order, and walking the talk by planning for more affordable housing.

Offering affordable housing and a comfortable living environment are essential criteria in building a sustainable future for our country. Whenever the government announces more constructive measures and makes things more transparent, the market environment becomes more optimistic. With this confidence, the Rakyat will be more than willing to do our part as taxpayers to achieve the common goals for the benefit of all.

Food for thought Alan Tong

Datuk Alan Tong has over 50 years of experience in in property development. He was the World President of FIABCI International for 2005/2006 and awarded the Property Man of the Year 2010 at FIABCI Malaysia Property Award. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com.

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Don’t allow another landslide tragedy to happen !

May 5, 2018 — rightways

STATE exco member Jagdeep Singh Deo should stop talking only of the 76m altitude restriction and also talk of 25-degree slope gradient restriction on hillside development.

According to The Star on Labour Day, state exco member Jagdeep Singh Deo wrote in his Facebook page: “I want everyone to get their facts right during this election campaign…”, and he went on to state that the Penang government did not approve projects on land more than 76m (250 ft) above sea level.

The Penang Structure Plan clearly states that sensitive hill land is defined not only as land over 76m above sea level but also slopes of more than 25 degrees; the development of such land is restricted to “special projects” only.

Any construction on slopes of more than 25 degree contravenes the second condition. Hillside development cannot be discussed only with reference to the altitude.

For slope stability, the higher the slope face and the steeper the angle, the higher the risk of slope failure.

While the previous Barisan Nasional government here approved many such hillside developments, the record of the present state government shows that more development on sensitive hillsides have been approved.

State exco member Chow Kon Yeow, in his reply to an enquiry in the State Assembly on November 2015, revealed that 56 high-rise towers have been approved on sensitive hill land between 2008 and end-2015.

In the case of the Tanjung Bungah landslide tragedy, DAP leaders claimed that the project was on flat land when it was evident that it was built on land that was once a slope and had been cut flat.

During the earthworks stage of that project, a 20m high, 60-degree angle slope was then formed at the boundary.

It was this slope that failed and buried 11 workers alive.

Under the Hillside Development Guidelines 2012, such a slope is classified as Class Three. Submission requirements include a geo-technical report by a geo-technical engineer and a geo-technical review report by an independent checker.

At present, another proposed project above the Miami Green Resort Condominium is on Class Four land (with slopes greater than 35 degrees) which is classified as “Environmentally Sensitive Areas with Disaster Risk”.

Under the draft Penang Structure Plan 2020, no form of development is allowed on such land.

A technical review of the site by Zeezy Global, a consulting firm, found that the proposed development is on a hill, on Lot 62, with height ranges from 40m to 140m above sea level.

Almost 50% of the slopes have a gradient of more than 25 degrees, and in some areas as steep as 40 to 50 degrees. Some parts of the area designated for construction are higher than 76m.

The project consists of two 34-storey towers of serviced apartments, each with 336 units, and a 20-storey “affordable housing” tower with 197 units.

Two retention ponds larger than an Olympic-sized pool with total capacity of 5.2 millon litres on the hill are planned to cater to expected high surface run-offs during and after construction.

The existence of such a huge mass of water poses potential risks to residents if the slopes de-stabilise during or after construction, particularly if monitoring, maintenance and enforcement are weak.

Existing gunite slopes in Miami Green are not designed for additional loading.

With the new project, exertion of loads at the upper slopes could endanger the residents.

The disturbance from the construction could affect the integrity of the existing slope. No assurance has been made regarding risks of landslides or slope failures during and after construction.

In light of the Tanjung Bungah tragedy, lessons must be learned. If the local and state authorities do not have the technical capacity to implement, monitor and enforce the present hillside guidelines, a moratorium on hillside development should be imposed until such time that this problem is resolved.

The public should not be put at risk anymore. Eleven lives were lost and hopefully not in vain.

By Dr Lim Mah Hui Former Penang Island City councillor

Dr Lim says hillside development cannot be discussed only with reference to the altitude

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Absorb New ways to prevent floods

January 29, 2018 — rightways

Sponge City: Solutions for China’s Thirsty & Flooded cities

China’s ‘sponge city’ projects may be worthwhile examples for Malaysia.

“Only about 20~30% of rainwater infiltrates the ground in urban areas, so it breaks the naturual water circulation.– Wen Mei Dubbelaar”

Last week, it was the turn of Petaling Jaya, Gombak and Sungai Buloh to be the latest major urban areas in Malaysia to suffer flash floods (Flash floods wreak havoc in PJ – Nation). Scenes of cars and buildings submerged in muddy water are now almost an everyday thing. The focus should now shift from the bad situations to the solutions.

It was also last week that I attended a briefing organised by civil society groups for Penang and Seberang Perai municipal officials and members. The briefing was on the recent floods.

Later, I came across several articles on how China is turning 30 of its flood-prone areas into “sponge cities” to prevent floods and retain rainwater.

The Chinese plan big and fast. It launched the sponge city project only in 2015, but it aims to retain 70% of rain in 80% of urban areas by 2020. The sponge concept is set to spread rapidly as part of global efforts to reduce the impact of increased rainfall and floods, and climate change.

The concept figured prominently at the briefing chaired by Penang state exco member Chow Kon Yeow. Scientist Dr Kam Suan Pheng introduced it when explaining the floods.

She contrasted the present situation when rain falls with what used to happen. In the past, 50% of the rain seeped through the natural ground cover (trees, grass, etc) and into the ground. There was 10% water runoff (to rivers and drains) and 40% evapotranspiration (water going back to the atmosphere).

The trees and green spaces act as a sponge to absorb the rainwater that infiltrates the soil, preventing the water from building up into flash floods.

Due to urbanisation, the green spaces have been paved over with cement and concrete. Now, only 15% of the rain infiltrates the soil, while the runoff has increased to 55% and evapotranspiration is 30%. The sponge now absorbs 15% of the rainwater compared to the previous 50%.

Dr Kam quoted former Penang Water Authority general manager Kam U-Tee as saying that the October 2008 Penang floods were caused by conversion of the valleys into “concrete aprons that do not retain water”. As a result, the water immediately flowed into streams, causing flash floods, even with moderate rainfall.

Given this analysis, a key part of tackling the floods is to reverse the loss of the sponge. In recent decades, Malaysia has seen the conversion of a lot of farms, parks, trees and grass areas into concrete jungles of roads, houses, commercial buildings and car parks.

There now has to be high sensitivity to the valuable environmental and economic roles of trees, gardens, fields and grasslands, and parks. The aim of garden cities is not just to be pleasing to the eye but to be a very important part of development as well.

Now comes the role of sponge cities. The world is applauding the Chinese initiative to counter floods and improve water security by building up the natural cover (or sponge) in its cities.

In 2010, landslides during flooding killed 700 in three quarters of China’s provinces. Last year, rains flooded southern China, destroying homes and killing around 60 people.

In 2015, China launched the Sponge City initiative, which now covers 30 cities, including Shanghai, Xiamen and Wuhan. The target: by 2020, 80% of its urban areas will absorb and re-use 70% of rainwater.

The many types of projects include:

> Constructing permeable roads that enable water to infiltrate the ground;
> Replacing pavements on roads and parks to make them permeable;
> Building wetlands to absorb and store rainwater;
> Constructing rooftop gardens (for example, 4.3 million square feet in Shanghai);
> Plant trees on streets and public squares;
> Build community gardens and parks to expand green spaces; and
> Build manmade lakes and preserve agricultural land to hold water.

“In the natural environment, most precipitation infiltrates the ground or is received by surface water, but this is disrupted when there are large-scale hard pavements,” said Wen Mei Dubbelaar, water management director at China Arcadis, in words similar to Dr Kam’s.

“Now only about 20-30% of rainwater infiltrates the ground in urban areas, so it breaks the natural water circulation and causes water logging and surface water pollution,” said Wen in an interview with The Guardian.

In Shanghai’s Lingang district, the streets are built with permeable pavements. There are rain gardens filled with soil and plants, buildings feature green rooftops and water tanks, and a manmade lake controls water flows, reports The Guardian.

Prof Hui Li at Tongji University said the first thing is to preserve or restore natural waterways as that is the natural way to reduce flooding risk.

The problem in Wuhan is that a lot of small rivers were filled in during building. But Lingang still has agriculture land and a lake to hold more water during heavy rain.

What about the cost factor? So far the cities have received over US$12bil (RM47.4bil) for sponge projects. The central government funds 15-20% of costs, and the rest is from local governments and private developers.

But compare this to the US$100bil (RM395bil) of direct economic losses due to floods in China between 2011 and 2014, plus the human lives lost.

Sponge cities are the way to go for the future. Our own governments – federal, state and municipal – should study this option seriously, as the public braces itself for more floods ahead.

– Global Trends by Martin Khor

Martin Khor is executive director of the South Centre. The views expressed here are entirely his own.
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STRATA Property insights – Serious on strata

January 20, 2018 — rightways

Important issues and frequently asked questions

STRATA-type property is and has been all the rage. It is also expected to be “the living model” if not already.

Whether in cosmopolitan cities or suburban fringes, and as space becomes “in want” and prices hike, we feature our final article on strata-related property highlighting pertinent questions frequently asked to which Chris Tan (CT) gives input on.

Q: What should one look out for in the S&P before deciding on buying a particular strata-titled residential property?

CT: Buying a strata title property is not just buying a property but buying into a community living regulated by law. As a buyer, you are not only responsible for your very own unit but also the common property within the development too.

There is an ongoing obligation to pay the monthly service charges and sinking fund until the day you sell the same to another owner.

Besides the S&P Agreement, you are normally expected to sign the Deed of Mutual Covenants too, that regulates the relationship of the many owners within the same development with house rules vis-a-vis the prescribed by-laws under the Strata Management Act. In addition to the compliance with these rules, you are also expected to participate in the management of the common property at the Annual General Meeting as well as the Extraordinary General Meeting.

In the completion of the S&P Agreement, do ensure that the seller has no more outstanding charges and sinking funds owing the management and that the deposits paid are to be adjusted accordingly.

Q: Can you please explain further on ‘share units’ of strata-titled property? How does this affect a residential strata-titled property owner or what is the relation between the owner and the share units?

CT: Share unit has always been there in strata living as it will be stated in the strata title upon its issuance. It is now capturing the limelight, given that it is now the basis to be contributed into the maintenance charges and not the usual rate psf of the size of your main parcel.

There are different ‘weightages’ for the main parcel, the accessory parcel and the type of usage to make up the various elements of the share unit.

Suffice to say that two units of apartments of the exact same size might have different share unit allocation, if one has more accessory parcels than the other, or one is of commercial usage while the other is residential.

Q: What are some current and common issues faced by owners of strata-titled residential property and how would these be best settled?

CT: Issue 1: Contribution to service charges and sinking funds from the owners have always been done on the total size (in sf.) of the main parcel. Under the new regime since June 2015, it should now be based on per share unit instead.

Share unit is a concept that takes into account the size and the usage (of different allocated weight) of both the main parcel as well as the accessory parcel. It’s stated clearly in the strata title when it is issued. It is also the basis of voting by poll if so requested in any General Meeting. Share unit is therefore now the basis of both contribution and control as opposed to just control in the past.

In theory, it should be a fair method for all. The issues are:

(i) Some strata owners find themselves paying more than before while some strata owners now pay less; and

(ii) The Share unit allocation under the previous legal regime was a result of consultation and discretion and not as transparently guided under the new law. It is a difficult process and to adjust again, particularly when the strata titles have been issued, will be tedious.

Issue No. 2: In Phased Development there is now a requirement to file the Schedule of Parcels (SOP) stating clearly the total share units to be offered under the entire development before one can proceed to sell. It therefore includes the later phases of a development that will only be developed in the future.

The issue is that this SOP can only be adjusted if we can get 100% of the owners to agree or it is a direction from the authority.

There will be no flexibility accorded to the developer who might want to change the SOP for the feasibility or sustainability of the development, taking into account the new circumstances of the future, in the best interest of the entire development.

Another related issue would be on the contribution of the allocated share units by the developer for yet to be developed phase in the maintenance of the common property already built and delivered.

Q: Any other ‘surprises’ or areas of concern that many strata-titled residential property owners are unaware of until after purchase of such residents?

CT: Don’t be surprised if the property does not come with an allotted car park, although it is a norm to expect a car park to come with the unit. It is not always the case.

Q: Like many busy owners of a strata-titled property who do not have the time to sit in at resident’s meetings with the management body – many have simply ‘gone with the flow’ of things as ‘questions/disputes’ require time for discussion.

What would you recommend for busy individuals who have ‘no time’ to attend such meetings but can only look at the annual/bi-annual strata/building management statements/financial reports? What should one keep an eye out for in these financial statements?

Why is it important to attend these meetings; what would owners be losing out on by not attending and being an ‘active owner’?

CT: It is a regulated community living and participation is expected of every owner.

Although many have chosen to be passive, you need to participate or run the risk of letting major decisions lay in the hands of the active few.

You should keep an eye to ensure that the charges collected are well spent, that collection should always be monitored and the performance of the appointed property manager.

Also, understand your rights and obligations as a strata owner is important, and ensure that you and your neighbors are equally aware of the same too.

Q: As a tenant, and not the owner of the ‘parcel’ – are they bound to all the By-laws?

CT: The by-laws, additional by-laws and amendment of such additional by-laws made by the Management Body shall not only bind the owners but also the tenants, chargess, lessees and occupiers.

Q: Any other important issues that you would like to highlight to readers of theSun?

CT: Moving forward, strata living will be the preferred way of community living. Take a keen interest to learn and understand this living model in order to get the most out of it.

There are many more frequently asked questions, especially on management bodies, by-laws and leakage and defects. Answers to these can be found in Chris Tan’s Owner’s Manual & Guidebook.

Follow our property column next Friday for more insights on the market in the local scene.

Source: Thesundaily

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