Housing Industry In Malaysia Construction Essay

lodgment industriousness In Malaysia Construction EssayHouse is a basic essential for human. This need mustiness be fulfilling in order to make an individual live in profound health and safety. Therefore, one of the mixer objectives in country cultivation is to return household facilities to people non just to fulfil their basic need but as well for economic growth of the country.To meet the increasing lodging need, ministry of caparison and topical anaesthetic administration always make a review of house policy to draft much compressive study caparison policy. The matters that establishment take into consideration in order to undertake the lodging chore is as followsNeed, implore and supply country for housingFinanceHuman resourcesTechnology, design of materials, standardsLawInfrastructure, utilities and social functionSocio-culture, socio-politic and socio-economicResearch and widenmentMaintenance of learn and floorData centers and information of housing These policies implemented base on the Eighth Malaysia Plan (2001-2005) and continued during the Ninth Malaysia Plan (2006-2010). In the Ninth Malaysia Plan, the development of housing sectors continues to be focused in order to provide adequate house to people.Population growth rapidly especi either toldy in urban aras due to demographic f spotors, rapidity of diligence sector, extend of investment, financial formation and technology encourage housing policy to be continued in Ninth Malaysia Plan. By 2020, the universe of discourse of Malaysia is expected to increase to 32 million people or 65% of the resident in urban areas. Due to population growth, the need and demand for house is also expected to increase. lodgment is the important strategical sector in economic, so is expected the housing investment give be concentrated in urban areas. In 1994, housing persistence produces 7.3 billion out put downs and contributes 12% to national income (Ali Azhar, 2000).2.2 trapp ing labor IN MALAYSIAIn providing housing, disposal and the hole-and-corner(a) sector has an important social responsibility. This responsibility includes the provision of social infrastructure and a healthy environment for residents. This responsibility is important in order to overcome the worrys such as poverty and solidarity among the people. living accommodations application in Malaysia involve overt (Government) and hush-hush sector and also sum venture between the two sectors to meet the need of all comm unit of measurementy in Malaysia. Therefore, housing development in Malaysia is implemented by the public and private sector ( subject area house Department). caparison provision for all community in Malaysia is carried out by public and private sector as follows2.2.1 general sphere (Government sector)Integrated public housing weapons platformProject Perumahan Rakyat Bersepadu (PPR) house Loan SchemeSkim Pinjaman Perumahan (SPP) living accommodations under the Lan d and Regional festering Agencies.Perumahan Di Bawah Pembangunan Tanah dan WilayahHousings economic training AgencyPerumahan Kemajuan EkonomiGovernment quarterPerumahan Kakitangan KerajaanPPR and SPP program in public sector is provide e peculiar(a)ly for lower income group to achieve the government aims which is to improve the quality of life and combat the poverty problem. This program was undertaken by the Ministry of Housing and local Government.For the Housing under the shoot and regional development agency such as FELDA, FELCRA, KEJORA, KETENGAH and so on is be for the purpose to provide a home or house for people involved in land and regional innovationning and also include the local resident who moved due to the opening of upstart agricultural areas, while state economic development cooperation (PKEN) and urban development cooperation (UDA) are involved in the development of commercial, industrial and construction. For the government quarters, the aim is to provide the housing facilities to the government employees especially for low-income employees.2.2.2 Private orbitLicensed Private Housing DevelopersPerumahan Pemaju Swasta BerlesenCooperative HousingPerumahan KoperasiSpecial let loose Cost HousingPerumahan Khas Perumahan coss Rendah (PKPKR)Individual and Group HousingPerumahan Individu dan KumpulanThe housing that develops by private sector is like detached house, terrace, flat, apartments, shops and townsfolk house that consist of low, modest and high cost.Special low cost housing is a special program implemented during the period 1986 to 1989. This program is a partnership between public and private sector. national government and state government wreaks a lineament in providing incentives as well as the facilitator for the developer who embark in the program, while the private sector involved in construction activities.Individual and group housing include both formal and informal housing. Formal housing is housing that less than 4 units, and was develop with flattery from local authorities, while not formal housing include the construction of residential houses without obtaining approval from relevant authorities such as traditional house, village house, squatters, labor camps and floating house (Elinawati, 2003).2.3 LEGISLATIN IN THE MALAYSIA HOUSING INDUSTRYCurrently there are about 700 national acts in force in numerous fields and certain frame. In Housing Development (Control and Licensing) procedure 1996 is the key in compulsory the activities of developers in order to protect the interest of home buyers. But there are other legislations that put to work an important role either directly or indirectly in the activities of housing industry. Therefore, all the failing and imperfections of such laws will affect the housing industry. The following is a list of legislation that plays a role in the housing industryHousing Development (Control and Licensing) stage 1996 (act 118)Town and Country Plann ing scrap 1976 (act 172)Roads, drains and building Act 1974 (act 133)Town Planning Act 1995 (act 538)Fire Service Act 1988 ( act 341) verify and Financial Institutions Act 1989 (act 372)Contract Act 1950 (act 136) Government Contract Act 1949 (act 120)Environmental Quality Act 1974 (act 127) Regulations and OrdersLand Acquisition Act 1960 (act 486) and the Rules Ordinances Acquisition of Land (compensation)(special provision)1948 P.T.M.Ord.21/1948)Strata Titles Act 1948 (act 318)Licensed Land Surveyor Act 1958 (act 458) quantity Surveyor Act 1967 ( act 487)National Land Code 1965 (act 56/1965)Additionally, by-law enacted according to Road, drains and building act is as followsUniform Building By Law 1984Earth act upons By Law 1985While the by-law under the Housing Development (Control and Licensing) 1966 areHousing Development (Control and Licensing) Regulations 1989Housing Developers ( Housing Development Account) Regulations 19912.4 PARTIES INVOLVED IN THE MALAYSIA HOUSING IND USTRYIn the housing industry, there are several organizations that play an important role as the Ministry of Housing and Local Government (KPKT) or local authorities, developers, contractors, professionals and home buyer (Leong Seng, 2001)2.4.1 Ministry of Housing and Local GovernmentMinistry of Housing and Local Government was establishing on May 24, 1964 under the name of the Local Government and Housing. On July 18, 1978 the ministry has changed the organizations and plump up under the name of Ministry of Housing and Local government. This establishment is the result of a combination of the ministry of housing and rural development with the local government which previously located under the Ministry of Local Government and Federal Territories (www.kpkt.gov.my).Ministry of Housing and Local Government has a spell of divisions and department that are closely related to the housing industry as belowNational Landscape DepartmentSolid Waste Management Corporation and Public Cleans ingTown and Country DepartmentFire and Rescue DepartmentLocal GovernmentNational Housing DepartmentSolid Waste Management DepartmentTraining Institute of the Ministry of Housing and Local Government.The main role of KPKT is to get wind the development of housing industry is in clean and maintained to ensure the interest of house buyers. The licensing and advisory services in KPKT are entrusted to manage issuance of licenses, announce permits and gross revenue to developers. Developer who built a house more than 4 units to sell is unavoidable to obtain licenses, advertising permits and gross revenue from KPKT. Only private developers are required to obtain the licenses, advertising permits and sales, cooperative and state cooperation are exempted from the licenses, advertising permits and sales. However, private developer also can be exemption from the licenses, advertising permits and sales, but in certain arrest that was stated belowBuild less than 4 unit house.Construct more t han 4 unit house, but not making any sales.Construct the houses but sold after a documentation of fitness (CFO) is full.To ensure the guaranteed of buyers interest, all housing developer is compulsory to open an account in bank or financial institution specifically for each housing depict. The account is to ensure that the housing developers use the housing buyers bullion in appropriate manner. Under the Housing Developers (Housing Development Account) Regulations 1991 all the money collected from purchasers and all loan obtain by the developer from bank or financial institution must be put into this account. every last(predicate) withdrawals from this account must be comply with the objectives set out in regulation 7 in Housing Developer (Housing Development Account) Regulations 1991 and controlled by the bank or financial institution and a credential from registered architect or engineer who is responsible for that housing project.The monitoring and Enforcement department of KPKT will monitor the project and enforce the law. Enforcement officer will visit the construction office to ensure that the progressing of the project follows the schedule. Because of too many housing projects and the small number of enforcement officer, surveillance is done at random and selectively.2.4.2 National Housing Development (JPN)National housing development also plays a role in the housing industry in develop a progressive and integrated community. JPN has high commitment in assisting the state government to provide the affordable and comfortable house through the planning, provision, and implementation of low-cost public housing such as integrated public housing program (PPR). The functions of JPN areProviding the basis of planning and policy related to the development of housing construction to help KPKT draft the policy, strategies and housing development plans for the country.Carry out research on building technology, construction and design with local universities as well as undertaking socio-economic studies and the effectiveness of the housing projects of public and private sectors.Help government and private developer in planning and coordination of their housing projects and the building.Provide skilful consultancy service such as land surveying, architectural, civil and structural engineering, mechanical engineering, contract management, management in the public housing project.Providing loans to those who are not able to get loans to build or buy a house.2.4.3 Housing DeveloperPublic developer is consisting of government agency or the corporations that control by the state or federal government. Their responsibility is to implement policies, guideline and national housing policy to protect the welfare of the poor people. All of the activities that undertaken by the government agency or corporations are not subject to the Housing Developer (control and licensing) Act 1996 and its regulations as bound by their respective government. To a chieve the national housing policy, government has planned a number of housing programs like the following below in order to meet the demand of low-income group.Integrated public housing programHousing Lon SchemeHousing under Land and Regional Development AgenciesEconomic Housing Development AgencyGovernment QuartersFor private developers companies, if they want to develop a housing project they should get the housing licenses from KPKT as stated in section 5 of the Housing Developers (Control and Licensing) act 1996. Private sector involvement is important in order to achieve the policy objective because without the private sector, government is not able to provide housing to meet community needs. In the private sector, the program implemented are diverse and in demand from time to time. The housing development by private sector involved various categories and type of housing especially a medium and high price. Housing program can be categorized as followsPrivate Licensed Housing D evelopersSpecial Low cost Housing Program (PKPKR)Individual and Group Housing2.4.4 The ContractorIn a housing scheme, the contractor is the second most important after a housing developer because they would involve themselves directly in the construction process and implementation of the project. If contractor strike problem, so indirectly it also bring the problem to the developer and thus affect the housing industry. This is because the Housing Developers (Control and Licensing) act 1996 and regulations stipulated that the licensed developer need to complete the construction project within 2 grades and if cannot be completed, developer must apply to extend the period of the development by giving the specific reasons.When developers get an approval for planning permission, they will appoint certain contractors to begin work on construction target. Normally the developer will appoint a main contractor who has a good record and demonstrated their ability to implement the project. After that, the main contractor will appoint contractors to mob out minor works in accordance with their respective areas of quickise. For the certain big developer company they not need to appoint a contractor to perform the construction work because they have their own contractors and expert team.The contractors involved in the construction industry need to get a license from the Construction persistence Development Board Malaysia or CIBD according to certain procedures. They will be given specific training in their respective field so that the quality of the construction industry can be compound from time to time. Contractors who wish to commence operations need to be registered in the Construction Service summation (PKK), according to the ability of the Ministry of Entrepreneur Development and their respective classes.2.4.5 ProfessionalsIn housing scheme, developers is the first one who plan and identify the location that housing project want to be carried out. From the beg inning of the implementation process until complete, developer need a expertise from various of field such as Real Estate Valuer, house decorator, Engineers, Quantity Surveyors, Land Surveyor, financial institution and lawyer to provide all the conditions required by the government department.Developer needs the prop Valuers expertise to ensure that the proposed site is suitable to be developed. The pass judgmentrs will examine factors such as the value of surrounding real estate market around, the distance from the city center to the site, the facilities in the surrounding, the ability and sample the local population, the types and the prices of house that suitable to develop in that site, so report can be fain to the developer. If the Feasibility study report show that the site is potentially to be developed, the developer will get the site either by the way of purchasing the land or through Land Acquisition Act 1960 (Act 486).When the developer gets the land, he will appoint consultant to undertake the project. For a large development company, they usually have their own consultant and set it up as subsidiary. At this stage, consultant should prepare a site plan, layout plan, and drainage to the local authority for approval.If the land is developed to be bound by any condition or restriction of interest and need to apply for subdivision, partition, or amalgamation so the land surveyor will play a role in these process until the approval from the State Authority (PBN).Architect and Engineers play a role in providing design plans and building involved in the project implementation stage. Architect need to design the type of housing that will be developed based on the render of buyers and accordance with current developments. According to Razali Agus, designing a house is important factor to attract house purchasers.Before the construction process begins, engineers need to require the quantity surveyor to identify the materials needed and the cost requir ed in providing these materials. Engineer is responsible to ensuring that all construction work is follows the Building plan prepared by the architect and follow the development schedule.While for the lawyer, they involved in Sale and Purchase Agreement (SPA) of the Housing Developers (Control and Licensing) Act 1966 requires the attorney to provide the letter of the agreement. He lawyer also responsible for ensuring that all capacity is understood by the buyer before signing the SPA.The role of financial institutions is financing the activities of housing development. The developer must obtain loan from financial institutions to finance the cost of housing project undertaken. Money that borrowed from financial institutions to the developer and the money paid by the purchaser should be put in housing development account and controlled by the institution.2.4.6 House PurchaserHouse purchaser is the most important group in housing industry because the success of failure the industry wi ll determine by them, whether in term of financial capability, taste, and zest to own a house. The main factor influencing the decision of the house buyers is the ability to buy a house.2.5 presidency HOUSING LOAN2.5.1 Basic Condition for Government Housing LoanThe basic condition for government housing loan isGovernment employees with fixed positionMalaysianApplication form submitted 6 calendar month before retirement or termination of serviceHave served at least 1 yearThe position have been confirmNot a bankrupt person or a debitor person or not capable or being disciplinary action2.5.2 Qualification pose of Housing LoanQualification rate of the loan is applied for the judges, the civil officer and members of general forces in Malaysia. The eligible amount of loan is as follow table 2.1NUMMONTHLY WAGELOAN ELIGIBLITY1.RM 3500 and in a higher placeRM 300,0002.RM 3000 to RM 3499RM 250,0003.RM 2500 to RM 2999RM 220,0004.RM 2000 to RM 2499RM 200,0005.RM 1500 to RM 1999RM 160,0006. RM 1200 to RM 1499RM 130,0007.RM 1000 to RM 1199RM 100,0008.RM 800 to RM 999RM 80,0009.RM 600 to RM 799RM 60,00010.RM 599 and belowRM 40,000Table 2.1 Wages and Eligibility Amount of Loan(Sources http//www.treasury.gov.my)2.6 FACTORS OF SURPLUS SUPPLY IN HOUSING INDUSTRYThe factors that affect overabundance of housing is2.6.1 The Weak of Purchasers Income GrowthAccording to the Malaysia Sixth and Eighth Plan, the weakened of the purchaser income growth is the major factor lead to oversupply in housing sector.2.6.2 Difficulty in Getting a LoanMalaysia sixth Plan also stated that difficulty in acquire the government loan is also the factor of housing oversupply. The special loan scheme that introduced by chamfer Negara Malaysia in 1982 and new condition imposed by the housing loan scheme reduced the demand for house.2.6.3 Higher Interest RateHigher interest rate is also a factor wherefore the surplus in housing supplies.2.6.4 Higher House PriceHigher house prices are also among on e of the factors that cause oversupply. Housing prices offered by the developer has reduced the high demand for housing units since most of them are not able to buy the house.2.6.5 LocationLocation is also a factor in the oversupply of housing. If a house is locate far from the city center, from work place and from the public facilities is the factor why the purchaser not interested in that house.2.6.6 DesignUsually the design of the house that offers by the developer is dewy-eyed and the spaces are limited.2.7 CONCLUSIONFrom the discussion of chapter 2, we can understand in general about the housing industry in Malaysia. In Malaysia, housing industry not just only run by the government but, also run by private parties. The government is also responsible to outlining and reviewing housing policies for the formulation of more comprehensive national housing policy. This policy is necessary to meet a proposed project to be implemented in the Malaysia Eighth Plan.Many people are involv ed in order to stabilize the housing industry in Malaysia. They play a vital role in helping the government to increase the housing industry. With the cooperation of all sectors or parties, the Malaysia housing industry sectors is expected to be more advanced and competitive in providing housing to meet requirement of the government and people, especially in Kelantan.