MIPFM: New law to tackle property management challenges may lead to redundancy

 By Sharen Kaur - April 9, 2025

The Ministry of Housing and Local Government’s proposal to introduce new legislation to address longstanding challenges in property and building management. -NSTP/ASWADI ALIAS

KUALA LUMPUR: The Ministry of Housing and Local Government's proposal to introduce new legislation to address longstanding challenges in property and building management should be carefully reviewed within the context of the current regulatory framework, says Ishak Ismail, president of the Malaysian Institute of Property and Facility Managers (MIPFM).

"Our organisation believes that the objectives sought by this proposal can be more effectively achieved through the reinforcement and enhancement of the current structure under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242), which established the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) in 1981," he said in a statement.

Ishak cautioned that establishing a separate regulatory board could lead to operational redundancies and create confusion in the oversight of property management professionals.

His comments follow recent statements from Housing and Local Government Minister Nga Kor Ming, who proposed the introduction of a new law specifically for property managers. According to Nga, the aim is to enhance the quality of property management services in Malaysia.

Nga highlighted that only 594 licensed property management firms are serving 2.91 million strata units nationwide, with each firm managing an average of nearly 4,900 units. This shortage, he said, has led to poor service delivery to joint management bodies and management committees, as well as the rise of unlicensed property managers.

Nga also pointed out that many property owners and tenants, particularly in strata developments, are facing declining property values due to poor management by "unqualified, inadequately trained, and dishonest property managers".

To address this issue, Nga revealed that the Ministry of Housing and Local Government (KPKT) has been in discussions with various associations and stakeholders to explore the possibility of introducing a new act specifically aimed at regulating property and building management.

The proposed legislation seeks to ensure that maintenance fees collected from property owners and tenants are properly allocated for essential services such as lift upkeep, park maintenance, facility refurbishments, waste collection, and sewage repairs.

However, Ishak argued that BOVAEP already has the statutory authority and infrastructure required to register and regulate property managers.

"Duplicating these functions within a new entity could lead to jurisdictional overlaps, inconsistencies in regulatory standards, and increased complexity for practitioners and the public alike."

He also pointed out the administrative and financial burden that would come with establishing a new board, suggesting instead that those resources be used to enhance BOVAEP's capabilities.

Ishak said a more effective approach would be to empower the existing board through enhanced resources, refined regulations, and targeted enforcement mechanisms.

He said this would build upon established expertise and streamline the regulatory landscape, ultimately fostering a more efficient and transparent property management sector.

"In conclusion, while we acknowledge the importance of robust oversight in property management, we advocate for a strategic strengthening of the existing framework under BOVAEP," he said.

Ishak said this would provide a more efficient, cost-effective, and cohesive pathway to raising industry standards and professionalism without the potential challenges of establishing a separate regulatory body.

Source: https://www.nst.com.my/property/2025/04/1199386/mipfm-new-law-tackle-property-management-challenges-may-lead-redundancy

KPKT blacklists 109 developers in Malaysia for regulatory breaches

 By Sharen Kaur - April 7, 2025

KPKT has blacklisted 109 property developers for failing to comply with regulatory requirements.

KUALA LUMPUR: The Housing and Local Government Ministry (KPKT) has blacklisted 109 property developers for failing to comply with regulatory requirements, reinforcing its commitment to protect the rights and investments of homebuyers.

Minister Nga Kor Ming said the National Housing Department issued 471 notices in 2024, resulting in total fines of RM9.03 million.

In the first two months of 2025 alone, 56 compounds were issued with fines amounting to RM1.25 million.

Most of the violations involved the failure to submit mandatory development status updates, audit reports, balance sheets, and profit and loss statements to authorities, Nga said.

Speaking at the 14th Annual Affordable Housing Projects Conference, Nga also revealed that directors of the blacklisted companies are barred from re-establishing themselves under new entities, ensuring accountability.

These developers will not be allowed to apply for new licences until their outstanding fines are fully settled, he said.

Nga added that for those with ongoing projects, these will be their final ones for now to ensure that homebuyers are not adversely affected.

He said that this enforcement action serves as a stern warning to all developers.

''The blacklisting sends a clear message that we will not tolerate illegal activities and non-compliance. We are taking strong actions to protect the hard-earned money of homebuyers and ensure they receive the homes they deserve.

"The welfare of homebuyers remains a top priority for the ministry. Developers must adhere to regulations to ensure timely and compliant project delivery," Nga said.

He reiterated that regulatory compliance is essential to ensure timely project completion and adherence to quality standards.

The list of blacklisted developers will be published on the ministry's website, allowing potential buyers to verify a developer's status before committing to a purchase.

Nga urged all homebuyers to check the official portal at https://teduh.kpkt.gov.my before making financial decisions.

"We are committed to upholding regulatory compliance to protect homebuyers' rights and ensure a fair and transparent housing market for all.

"Malaysian developers have a high reputation... We will reward those who perform well but will not tolerate unscrupulous practices," Nga concluded.

A key market expert said that blacklisting is a vital tool in Malaysia's efforts to safeguard homebuyers from dishonest or unreliable developers.

"This measure is designed to increase transparency in the housing market, hold industry participants accountable, and guarantee that projects are completed on time and to the promised standards," he told Business Times.

The expert advises potential homebuyers to conduct thorough research before purchasing new property in Malaysia. Checking a developer's status with KPKT is a crucial step to ensure dealing with a reputable company.

He noted that developers can be blacklisted for several reasons, including failing to submit mandatory development status reports and audited financial statements like balance sheets and profit and loss reports. Other grounds for blacklisting include project delays or abandonment, breaching licensing conditions, and mismanaging buyer funds.

"As the minister said, blacklisted developers face significant consequences. They are barred from applying for new housing development licences until all issues are resolved and fines are paid.

"The names of blacklisted developers are publicly available on KPKT's official portal, which can severely damage their reputation and that of their key officials.

"Company directors can also be blacklisted, preventing them from creating new companies to circumvent the ban"."

The expert said that while blacklisted developers can complete ongoing projects, they cannot start new ones until they achieve full compliance.

However, he questions whether homebuyers would trust these developers again, even after they resolve their issues, suggesting that the damage to their reputation may be irreparable.

Source: https://www.nst.com.my/property/2025/04/1198262/kpkt-blacklists-109-developers-regulatory-breaches-safeguard-homebuyers#google_vignette

Gemas-JB electrified double track: A game changer in Malaysia's railway network

 By Sharen Kaur - April 8, 2025

The Gemas-Johor Bahru electrified double track project (Gemas–JB EDTP) is expected to do more than just cut travel time between major southern cities - it's poised to become a catalyst for regional economic development, said Transport Minister Anthony Loke Siew Fook. - NSTP/AIZUDDIN SAAD

KUALA LUMPUR: The Gemas-Johor Bahru electrified double track project (Gemas–JB EDTP) is expected to do more than just cut travel time between major southern cities - it's poised to become a catalyst for regional economic development, said Transport Minister Anthony Loke Siew Fook.

Loke, in a recent Instagram post, highlighted that the new electrified train service will not only enhance connectivity and mobility across key urban centres but also bolster the broader transportation network, stimulating economic growth in surrounding areas.

The EDTP, implemented in phases, is part of Keretapi Tanah Melayu Bhd's (KTMB) ongoing rail network modernisation programme.

It replaces ageing single-track, diesel-powered lines with electrified double tracks, forming a critical pillar of the government's strategy to improve public transport, freight logistics, and regional connectivity along Peninsular Malaysia's west coast.

Earlier phases of the EDTP include the Rawang-Ipoh stretch (completed in 2008), Seremban-Gemas (2013), and Ipoh-Padang Besar (2014). Each segment has played a key role in easing traffic congestion and driving local economic activity.

The final phase namely the 192km Gemas–Johor Bahru segment features 11 stations across the Johor districts of Segamat, Kluang, Kulai and Johor Bahru.

Once linked to the Padang Besar-Gemas line, the route will complete a fully electrified rail corridor stretching from the Thai border in Perlis to Malaysia's southern tip.

When operational, the Gemas–JB line will offer 22 daily services, each accommodating 300 to 500 passengers.

The service will mirror KTMB's Komuter networks, providing fast, frequent rail options to southern commuters.

Travel time between Kuala Lumpur and Johor Bahru will be slashed from seven hours on a diesel train to just 3.5 hours on the new electric trains, which are capable of speeds up to 140 km/h.

Despite facing challenges such as the Covid-19 pandemic, land acquisition hurdles, delayed deliveries of train sets from China, and stringent testing procedures, the project has made steady progress.

With a total project cost of RM9.5 billion, the line had reached 98.1 per cent completion as of November 2024 and is on track to be fully operational by August 2025.

The first ETS3 train set has already arrived, featuring 312 seats, WiFi, USB charging ports, and generous luggage space - all aimed at delivering a more comfortable and modern passenger experience.

Johor Menteri Besar Datuk Onn Hafiz Ghazi recently announced that ETS services from Segamat began in March, with Labis following in April, Kluang in May, and the final extension to Johor Bahru scheduled for September.

To commemorate the launch of ETS services to Segamat, main contractor SIPP-YTL JV participated in the "Yok ke Segamat" programme - a joint initiative by KTMB and the Railway Assets Corporation (RAC).

The event was officiated by Loke, who arrived in Segamat via ETS from KL Sentral on March 15.

During the visit, Loke flagged off the Segamat-Butterworth ETS service and inspected station upgrades, including newly-improved waiting areas, ticketing counters, digital information displays, and facilities for individuals with disabilities.

"The working visit to Segamat provided an opportunity to experience firsthand the new ETS service, which is a major step toward strengthening the public transportation network," Loke said.

"During the trip, I received a comprehensive briefing on the Gemas–JB service, which is on track for full completion this year."

SIPP-YTL JV expressed its appreciation to the Transport Ministry, KTMB, and RAC. "We remain fully committed to supporting the government's ambition to strengthen Malaysia's rail infrastructure for the benefit of all," the company said in a LinkedIn post.

Once completed, KTMB expects the EDTP to also enhance freight movement - particularly between Port Klang and the Port of Tanjung Pelepas - further solidifying its role as a strategic logistics corridor.

Source: https://www.nst.com.my/business/corporate/2025/04/1198743/game-changer-malaysias-railway-network

YTL, Genting, KLK among 500 global enterprises that collectively raked in US$8.8tri in revenue

 By Sharen Kaur - April 8, 2025 

Family-owned enterprises remain a cornerstone of the global economy, with the world’s 500 largest family businesses generating a combined revenue of US$8.8 trillion in 2024. NSTP/ASYRAF HAMZAH

KUALA LUMPUR: Family-owned enterprises remain a cornerstone of the global economy, with the world's 500 largest family businesses generating a combined revenue of US$8.8 trillion in 2024—a 10 per cent increase from the 2023 index—and providing employment to 25.1 million people across 44 countries.

This growth stands out against a backdrop of 3.3 per cent global gross domestic product (GDP) growth in 2023, underscoring the outsized impact of these businesses. On average, each company generated US$17.6 billion in annual revenue, with 80 per cent of them surpassing the US$5 billion mark.

Collectively, these enterprises would form the world's third-largest economy if measured by GDP, behind only the United States and China.

These insights are drawn from the 2025 EY and University of St. Gallen Global Family Business Index, a biennial report ranking the world's top 500 family businesses by revenue.

Europe continues to dominate the index, accounting for 47 per cent of the listed companies. North America follows with 29 per cent, while Asia contributes 18 per cent. By sector, retail leads with 20 per cent representation, followed by consumer (19 per cent), advanced manufacturing (15 per cent), and mobility (9 per cent).

The index also highlighted the growing strength of Southeast Asian family enterprises, with 17 companies making the list this year—up from previous years. These include Malaysia (3), Indonesia (2), the Philippines (5), Singapore (3), and Thailand (4).

Together, these Southeast Asian firms generated over US$146 billion in revenue and employed nearly 875,000 people, up from US$119 billion and 850,000 employees in 2023.

The three Malaysian family-owned enterprises on the list are YTL Corp Bhd, ranked at 306 (revenue: US$6.6 billion), followed by Genting Group at 343 (revenue: US$5.95 billion), and Kuala Lumpur Kepong (KLK) Bhd at 396 (revenue: US$5.06 billion).

The 2025 index reaffirms that family enterprises are not just surviving — they are evolving and leading the way in shaping a resilient and forward-looking global economy.

Bernad Yap, Malaysia Private Tax Leader, said, "Post-Covid, we have seen an increase in liquidity and private equity not only globally but also in Malaysia, particularly in investments related to the new era of digital services and connectivity, supply chains, electrical and electronics (E&E), and food security."

He added that Malaysia is witnessing the rise of its family enterprises and the introduction of the Family Office framework in Forest City is a step toward strengthening wealth management and attracting global capital.

"Establishing a formal family office structure in Malaysia will provide opportunities for global funds and regional family enterprises to manage their growing wealth from Malaysia and enhance the country's investment landscape," he said.

Low Bek Teng, EY Asean Family Enterprise Leader, emphasised that family enterprises have long been the foundation of Asean's economy due to their strong reinvestment strategies, which support long-term, sustainable growth.

"To continue their growth trajectory, it is important for family enterprises to be mindful of the global geopolitical risks on the horizon as well as the evolution of new technologies like artificial intelligence and leverage the opportunities that come with the disruptions."

Despite global economic uncertainties, mergers and acquisitions remain central to the strategic growth of family enterprises. Nearly 47 per cent of companies on the list engaged in at least one M&A deal in the past two years, with 34 per cent of disclosed transactions valued above US$250 million.

Long-term vision and adaptability continue to define these businesses. Over 85 per cent have operated for more than 50 years, and 34 per cent have surpassed the 100-year mark. Notably, a Japanese company on the index has been in operation for over 400 years, while two European firms have histories spanning more than three centuries.

Thomas Zellweger, a professor from the Centre for Family Business at the University of St.Gallen, noted, "Family-owned businesses have a remarkable ability to adapt and thrive in dynamic environments. The focus of family firms on their long-term survival, combined with high concern for efficiency and conservative financing practices, sets many of these firms up for continued success."

Source: https://www.nst.com.my/business/economy/2025/04/1198859/ytl-genting-klk-among-500-global-enterprises-collectively-raked