11/25/2008Bahasa :Bahasa Melayu
Berkaitan Isu/Majlis


Mr. Richard Chan,
Organising Chairman Of FIABCI Malaysia-PPK Malaysia Seminar 2008

Yang Bahagia Datuk Richard Fong,
President Of Fiabci Malaysia

Ms. Joyce Yap,
President Of Malaysian Association For Shopping & Highrise Complex Management

Tan Sri-Tan Sri, Dato Seri-Dato Seri, Dato-Dato

Honourable Guests

Our Very Important Speakers

Members Of The Media, All Delegates

Ladies And Gentlemen

A very good morning to everyone.

First of all, I wish to thank the organisor of this seminar for inviting me to join you in this special gathering that concerns the asset management of the property sector. It is certainly good to see so many of you here this morning comprising of Malaysian property industry practitioners especially the key property developers and managers from residential, office, commercial and mixed developments sectors. It is also a refection that despite the global downturn, there is keen interest in our property industry both from the development and operation perspectives.

Under the prevailing condition, the government has been monitoring the situation and plans remedial actions and facilitating measures to assist the current property players such as relieving materials price hike and improving the delivery system. It is in the interest of the government to ensure that the Malaysian property industry not only survives the global downward trends, but to continue to grow steadily, albeit more slowly and more cautiously. Although it is anticipated that the world’s economy especially those in the US and Europe may eventually have negative influence on our performance and growth rates, we are confident that if our industry practitioners work together in partnership with the government and take proactive measures, we will survive the current crisis together.

Ladies and Gentlemen,

The Building and Common Property (Maintenance & Management) Act 2007 (BCP) came into effect since April 2007, impacting all stratified properties, including commercial, office and residential buildings etc. The BCP Act requires all properties intended for subdivision to form their Joint Management Bodies (JMB) or Joint Management Committees (JMC). The Act is intended to streamline the management and maintenance functions of these properties via an accountable body, to weed out any confusion and impropriety with the ultimate goal of protecting the individual strata owners. It also allows the parcel purchasers to participate in the management of the common property during the transition period between the Vacant Possession and the formation of Management Corporation (MC) which in some cases can last for years.

With respect to the operation side, I am pleased that the Commissioners Of Building (COB) of peninsula Malaysia has been steadily receiving the notices of formation of JMB and JMC in their respective areas. However, there are still developers and parcel purchasers who are not sure of the procedural operation of the BCP Act. The Ministry of Housing and Local Government has been providing road shows and training sessions for the Local Authorities officers and the professional bodies. I hope the respective developers and parcel purchasers who are still unclear about the Act will seek the advice and assistance of the COBs in their respective areas. As the Act is relatively new, we expect some adjustment period for the regulators and stakeholders.

In this regard, this seminar organized by FIABCI and PPK is most timely as it will not only provide an opportunity for the property sector stakeholders to have better understanding of the Act but also allow the stakeholders to provide views and suggestions on some of the finer points of the operation issues. I must also thank the organisor for taking this initiative to complement government effort in disseminating the operation details of the Act. I hope to receive the summary of the new ideas and suggestions from this seminar with the view of seeking further improvement to the operation of the Act.

Ladies and Gentlemen,

The importance of maintenance culture needs no further elaboration. With the accumulation of the property asset in the built environment especially the building stock, there is a pressing need for good asset management to keep them in good operation order. As of first quarter of 2008, there are 4,079,320 units of residential units, 331,563 shops, 8,735,173 sq m of retail spaces for shopping complexes, 14,881,382 sq m of office spaces and 89,323 units of industrial units as recorded by NAPIC. Such mammoth stock of asset will attract professional skill in managing and maintaining them in a more efficient and cost effective manner. I hope all aligned professions in this field can synergies their effort in applying systemic asset management (SAM) to these properties as the cost of maintenance and management can have a big bearing on their profit line. Good asset management should be placed as a priority on their business plan.

Developers who construct houses and commercial buildings should not close their book after delivery of all houses or buildings. They should instead monitor these buildings on the quality and performance of the facilities during the operation period. Good developers should take pride of buildings that have least defects or complaints and the facilities such as M&E equipments, common property, landscaping working are working perfectly. For this to happen, the professionals involved in the projects should employ the good asset management approach right from the design stage through the construction stage and finally inspections stage. Every life cycle costing of the building component will have a bearing on the functionality and durability of the built environment. For that, I am pleased to know that some reputable developers have already embarked on this good concept. This will indirectly create a strong branding for the developers concerned and it will be in their interest for the long term sustainability in the property industry.

Ladies and Gentlemen,

The erratic fluctuation of building materials prices may have thrown in more cautionary move to the developers to the potential development areas. Government on her part has been attempting to relieve the pressure by liberalizing the import of building materials while at the same encourage the use of local materials. Under the era of globalization, I hope the local manufacturers of various building materials will continue to upgrade the standard and quality of their products in order to compete with the foreign import. The local manufacturers should look beyond the local market as I believe many of them have achieved the international standard judging by the number of ISO certification issued to them.

I hope the local manufacturers can invest on their R&D to go into new areas of growth as I understand that there are products that are not easily available in the local market such as building materials for Disabled Person built facilities. The rain harvesting system which is expected to be common feature in the near future requires few components that are still tailored made such as the first flush tank and rectangular water storage tank. Mass production in these products will not only lower the construction cost, it will be of better quality since it is manufactured in the factory controlled condition. On the nation’s perspective, it will mean earlier realization of government effort to improve the built environment.

On the same note, government is promoting Industrialized Building System (IBS). IBS can be accelerated if building components are easily available in Modular Coordination ( MC) dimension. Since Malaysia produces various building components such as timbers doors and frames, ceramic tiles, sanitary wares, roof trusses, water pipes, the manufacturers should start mass producing these products in MC components which can be universally used in most building sites. It will be matter of time when MC becomes the norm of the dimension of most building materials. As it is, many oversea market call for such dimension as basic requirement. On the construction side, it will also mean less reliance on foreign labour as more IBS system components are being used.

Ladies and Gentlemen,

On final note, I wish to congratulate FIABCI and PPK for their success in organizing this timely and important seminar. I hope you will benefit from the experiences of prominent speakers and the exchange of ideas in this seminar. With this message, I am pleased to officiate the seminar on “Appointing A Managing Agent”.

Thank you