property

NCT is confident govt will breathe new life into ailing projects

KUALA LUMPUR: NCT Alliance Bhd executive chairman Datuk Seri Yap Ngan Choy is confident that the government will breathe new life into ailing projects, transforming them into dynamic and purposeful spaces.

Yap said this in response to Prime Minister Datuk Seri Anwar Ibrahim's announcement of a RM1 billion special financing guarantee through the 2024 Budget to address the pressing challenges posed by abandoned property projects in the country.

Housing developments that have not been completed by developers within the timeframe specified in the Sale and Purchase Agreement (SPA) and left idle are considered abandoned.

Local Housing and Development Ministry's special task force dealing with abandoned or "sick" housing projects in the country had identified 141 delayed property projects, 481 sick projects, and 112 abandoned projects as of April 30.

The results were higher than in March, when there were 110 delayed property projects and 435 sick projects. The overall number of projects abandoned remained steady at 112.

In a statement, Yap said that NCT, which has a strong track record and established reputation as a 'White Knight' in rejuvenating abandoned projects, echoed the government's commitment to ensuring the completion and delivery of the homes to the homeowners.

Yap, who emerged as a substantial shareholder of NCT around 2019 when he purchased a 53.32 per cent stake through his private vehicle, YBG Yap Consolidated Sdn Bhd, has been gradually transforming the company into a property developer.

  Known for his ability to give a new lease of life to abandoned property projects, Yap intended to make NCT, his first publicly listed vehicle, a rescue vehicle for distressed property projects.

  Meanwhile, Master Builders Association Malaysia (MBAM) president Oliver HC Wee thanked the government for the list of construction projects announced. 

  However, he said that they are still insufficient for the industry as a whole. 

  Wee said that in order to jump-start the revival of Malaysia's construction industry, MBAM is requesting that the government provide more assistance to the construction industry in order to revive and sustain the construction sector.

  He said the association was pleased to see that the government intends to build the Penang-Seberang Perai LRT for RM10 billion using the public-private partnership (PPP) method.

  The announcement to relax requirements for the Malaysia My Second Home (MM2H) programme was welcomed by Datuk NK Tong, president of REHDA Malaysia.

  "We look forward to receiving more information about these requirements, and as one of the stakeholders, REHDA hopes to be included in engagements and discussions pertaining to MM2H," he said.

  However, he said the association is concerned about plans to implement a four per cent flat rate for stamp duty on memorandums of transfer on purchases by foreign individuals and companies.  

  Although the number of foreign ownerships in Malaysia is negligible, he believes it may discourage future migrants from pursuing homeownership and MM2H.

  Tong also expressed concern about the decision to raise the service tax on selected industries and sectors to eight per cent from six per cent.

  "As a player in an industry that is still finding its post-COVID footing and struggling with increased development costs, we fear that this will directly or indirectly impact the livelihood and income of so many stakeholders across so many industries," he said.

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