By Sharen Kaur - April 9, 2025
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
No comments:
Post a Comment