DBKL high-handed policy

by “Angry Housing Developer”

What I am going to relate did happened and if you are doubtful you may check with other developers from the Klang valley who were called to attend a meeting at DBKL on 31st July 2007.

The meeting was for the purpose of releasing the overdue bumiputra quotas of houses which had remained unsold after having complied more than once the stipulated conditions of DBKL.

All the developers who attended the meeting had already complied with the conditions of publishing in the major newspapers for sale of bumiputra units and in addition we were told to book a space in Mid Valley or a designated place for further campaign to sell the bumi units.

The above exercise does not come cheap. Advertising space in the major papers and rental of space at Mid Valley cost us close to RM20,000. Can you imagine our frustration when we were told to repeat the whole exercise when we could not sell the bumi units.

In exasperation I told the DBKL officials that even if we were to give 20% discount to the Malays they would not buy our houses because it was located in Salak South, Sg Besi, an exclusive middle class enclave of the urban Chinese. Nearby there is a market selling pork and a Chinese school. Also in the vicinity is a food court selling non halal food. So would any Malays want to buy them? No said the official, “You have to advertise in the papers again and do the campaign at Mid Valley again” without any compromise.

We are a small housing developer and the total units built was 40 and the bumi allocation was 12. At RM420,000 per unit an amount close to RM5 million was tied down to the project. No wonder alot of small companies were forced to abandon their projects. We had complied with all the stipulated conditions and now after more than a year of waiting DBKL still did not want to release the units to be sold to non bumis.

Instead we were called to attend a meeting on 31st July 2007. At the meeting DBKL dropped a bombshell. Since we could not sell the bumi’s quota we have to now pay the bumi discount direct to DBKL. In our case since we gave a 7% discount each unit would have to be paid RM29,400. For the 12 unsold bumi unit we have to pay RM352,800 to DBKL.

All the developers who attended the meeting protested vehemently at the atrocious policy and refused to pay and the meeting ended without any resolution. Meanwhile, the approval to release the bumi units remain suspended since no decision was made.

Instead of abolishing altogether the bumi discount of houses DBKL has deemed it fit to demand that the bumi discount instead be paid to them. We would like to ask DBKL what rationale is there to give a discount to bumis who could afford to buy a RM420,000 house? This is clearly an abuse of the NEP.

Further, if DBKL is so adamant that the units be sold to Bumis why dont DBKL buy the units from the developers and sell it at their own leisure to Malay buyers. Why should developers bear the cost of implementing their bumiputra ownership policy. It is thoroughly unfair to expect developers to even bear the cost of advertisement and conducting roadshow in order to comply with DBKL social engineering schemes.

Finally, we as businessmen are entitled to an explanation from DBKL whether this is government policy or is it merely DBKL acting on its own whims and fancy. As businessmen we have to factor this in our costing and any spontaneous and arbitrary change in policy is certainly detrimental to investors expectation.

  1. #1 by Ah Hong on Friday, 3 August 2007 - 8:50 am

    it just wasting the time and money. everything according to rules & regulation yet not allow the developers to sell off the reserve units.

  2. #2 by K S Ong on Friday, 3 August 2007 - 8:58 am

    More than 10 years ago, a project in Segambut applied for release of Bumi units, having complied with the necessary advertisements required over a period of a year. DBKL replied that the developer should rent the units out instead! Luckily the titles were freehold and the units were sold to Bumi friends and resold almost immediately.

    Civil servants are not businessmen and therefore unable to understand that time is money.

    One project in Setapak had 60% Bumi units because it was alienated from state land. We were advised to mix the Bumi with Non-Bumi units which we did ie. 2 units Bumi and 1 Non-Bumi. The feedback we received from Bumi purchasers: We prefer all Bumi units in a row!

    This is another example of unnecessary interference with supply and demand without achieving the intended purpose.

  3. #3 by Godfather on Friday, 3 August 2007 - 9:09 am

    Welcome to the Never Ending Policy.

  4. #4 by Godfather on Friday, 3 August 2007 - 9:12 am

    These obstacles are put up so that they can exact a toll to take them down. Most Chinese developers have learnt how to work around the system. If you adhere strictly to the rules, there is no solution.

  5. #5 by Toyol on Friday, 3 August 2007 - 9:14 am

    No wonder there are so many rich ex-DBKL officers in TTDI. ACA should investigate such claims. It is preposperous for developers to pay the discount to DBKL. Where is it stated in the Housing Ministry guidelines? Will the Housing Developers Association please comment.

  6. #6 by tidaknama on Friday, 3 August 2007 - 9:33 am

    If you can afford a RM420,000 house, why do you need a discount? Shouldn’t the money be used to benefit the poor and needy, irrespective of what race or religion they are?

  7. #7 by palmdoc on Friday, 3 August 2007 - 9:35 am

    I also cannot comprehend the logic of giving a discount to someone who can otherwise afford a RM420,000 house, simply on the basis of ethnic group.

  8. #8 by tidaknama on Friday, 3 August 2007 - 9:37 am

    Good morning Palmdoc, maybe you should give discounts to your haematology patients too!

  9. #9 by accountability on Friday, 3 August 2007 - 10:15 am

    dear all, please remind your truly patriotic friends to vote for a change – vote out BN for their blatant abuse of the never-ending policy!

  10. #10 by justiciary on Friday, 3 August 2007 - 10:16 am

    The stupid NEP policy should be scrapped otherwise anger and frustration as faced by ‘angry developer’ will continue.Just imagine a rich bumi is allowed 7% discount and a poor nonbumi rubber tapper or carpenter has to pay the full price.Isn’t it obnoxious and disgusting to retain the NEP for so long?Clearly the ruling body deliberately uses it to divide and rule and also get votes easily from the pitiful and ignorant bumis.

  11. #11 by Billy on Friday, 3 August 2007 - 10:31 am

    Okay, so the developers have fulfilled the requirements as stipulated by DBKL. Now what DBKL should do is to force the bumis to take up the lots allocated to them instead of forcing the developers to continue marketing the products and eventually run at a loss. This is what happens when you have morons running the country. So what happens if Phase II of the promotion doesn’t work, will DBKL force the developers to do roadshows in the Malay hinterland to sell the properties? Goblok and stupid personified!!!!

  12. #12 by RealWorld on Friday, 3 August 2007 - 10:33 am

    “dear all, please remind your truly patriotic friends to vote for a change – vote out BN for their blatant abuse of the never-ending policy!” – accountability

    Never gonna happen because this is Malaysia. Come GE day, the rakyat will return BN with another thumping win.

    The Opposition has only a marriage of convenience, how can they govern and administer the country when they are not even united?

  13. #13 by witoutprejudice on Friday, 3 August 2007 - 10:57 am

    We can see clearly that the bumi allocation in all housing development is a waste of resources and money. Like tidaknama said, if they can buy a RM 420k worth of house, what is the 5-7% discount? The discount is for those poor bumi to own a house at a lower rate. RM420k a house? those bumi who buy these house are orang kaya bumi. what discount? abolished NEP policy on this area.

  14. #14 by witoutprejudice on Friday, 3 August 2007 - 10:59 am

    saudara lim,

    i believe that total removal of NEP policy is impossible. The best way is to slim down the policy of NEP. For example, abolished the 5-7% discount for bumi purchasing the houses above RM100k.

    We have to reduce the policy power little by little.

  15. #15 by witoutprejudice on Friday, 3 August 2007 - 11:02 am


    it is true that opposition may not able to rule the country. The reason of the GE campaign is to reduce the majority of BN in the parliment. Probably 2-3 states power fall into the hand of the opposition like Kelantan, Terengganu, Penang, Kedah. If possible Sabah and Sarawak.

  16. #16 by madmix on Friday, 3 August 2007 - 11:08 am

    After you sell a unit to a Malay, is he allowed to sell it to a non-malay, say within a few months to a year? If that is possible, why not sell at discount and find ready non-malay buyers to take it off their hands for a commission?

  17. #17 by witoutprejudice on Friday, 3 August 2007 - 11:15 am


    this is the NEP bumi housing policy loophole that the UMNO do not intend to close it. it is their money making machine. that’s how they help their own kind. by allowing unfair competition.

  18. #18 by cklife on Friday, 3 August 2007 - 11:53 am

    Hahahhahaa… yeah… I can understand if you give discount to low-cost houses in favor that poorer Bumi can stay…
    But RM420000… wow.. they should be rich enough to buy the whole lot without discount….

  19. #19 by setu on Friday, 3 August 2007 - 11:57 am

    another probable phenomena,
    after buying on discount,
    cannot cope up with urban living,
    cost too high, family too big,
    loans too high, escape, run away,
    abscond, abandoned, then, auctioned.
    no takers.

  20. #20 by democrate on Friday, 3 August 2007 - 12:42 pm

    Where is OKT a housing Minister? he has to answer!
    Realworld i suppose u r been kick out from this blog, your return to LKS blog is just like “pushing worms into your own ass and and enjoy your itch and keep scratching ok? ” then go collect money from Umno.

  21. #21 by smeagroo on Friday, 3 August 2007 - 12:50 pm

    This is just a ploy by Little Napoleans to make a quick buck la from developers.

  22. #22 by unsatisfied on Friday, 3 August 2007 - 2:04 pm

    Oh they learn from Pak Lah ma, he failed in economy remember? so now this is islam hadhari la.

  23. #23 by unsatisfied on Friday, 3 August 2007 - 2:05 pm

    better check whether the money is intented to DBKL or the officer’s account.

  24. #24 by Educator on Friday, 3 August 2007 - 4:33 pm

    I hope that this developer and the other developers who suffered the same fate did not vote for BN. Otherwise, you and your friends deserve it.
    By the way what says the relevant minister?

  25. #25 by ihavesomethingtosay on Friday, 3 August 2007 - 4:39 pm

    most housing developer pays lip service to Bn, so go tell Ong Kata noTing.

  26. #26 by boh-liao on Friday, 3 August 2007 - 5:01 pm

    Malays who can buy a RM420,000 house are considered to be poor by UMNO definition (and poor because they cannot compete with non-Malays) and require help, and hence the discount, 5% or more. This is against the NEP spirit to upgrade poor Malays.

    Non-Malays who cannot afford to buy a RM420,000 house are considered rich and they can tighten their belts, until their waists disappear, to buy cheaper houses.

    How dare you developers build new houses near a market selling pork, a Chinese school, and a food court selling non-halal food, and then expect Malays to buy the houses? Please relocate or close down the market, school, and food court. Don’t ever think you are in a secular state! So said our DPM.

    How dare you developers refuse to re-advertise in the major newspapers for sale of bumiputra units and to book a space in Mid Valley to further campaign the sale of the bumi units? Do you want our UMNO- and MCA-controlled newspapers to miss making more money from you? So un-nationalistic.

    We must continue to uphold the NEP (Never-ending-way of Emptying your Pockets) for the sake of peace and harmony in our beloved nation.

  27. #27 by boh-liao on Friday, 3 August 2007 - 5:03 pm

    This is against the NEP spirit to upgrade poor Malays.
    Sorry, should be
    This is the NEP spirit to upgrade poor Malays.

  28. #28 by Bobster on Friday, 3 August 2007 - 6:32 pm

    Not just DBKL, MBPJ, MPSJ, MPA, MPSA the list goes on … all corrupted till the bones!

    Happened to be at Kota Damansara the other day visiting friend, MBPJ officers working hard collecting toll till 930pm! Never seen such hardworking officers before. Even when they were there, so what, tables still all over the parking lot. Opps, I forgot coffee shops need to pay parking fees too for putting tables all over the parking lots. No wonder MPBJ officers working so hard. Oh, some shops even got harassed for simple fault while the rest carrying on business like usual.

    Any ACA officers there reading this? Now I give you some clues where to catch those MBPJ buggers, ball in your court! Please dont let me see you guys following behind MBPJ come and harrass the public again!

  29. #29 by RealWorld on Saturday, 4 August 2007 - 1:15 am

    “Realworld i suppose u r been kick out from this blog, your return to LKS blog is just like “pushing worms into your own ass and and enjoy your itch and keep scratching ok? ” then go collect money from Umno.” – democrate

    I can see your deep fascination with anal pleasures and all. But hello, I think you are in the wrong forum. :)

    Collect money from UMNO??? Dude, just do yourself a little favour will you? Try to not make yourself look beyond idiotic.

  30. #30 by democrate on Saturday, 4 August 2007 - 10:24 am

    The real forum is Umno Blog so go back to Umno man and you look 3 times beyond stupid dumb idiot…. Pora Umno apologist…do not waste your time at LKS blog ”””’ enjoy your scratch… Ha…HA….
    Your right forum is BN forum ok stupid fool !!

  31. #31 by ktteokt on Saturday, 11 August 2007 - 1:02 pm

    All these spoon feeding must stop after half a century of special concession to these group of “parasites”. Why must they be given such special treatment when everyone else is sloughing to keep their heads above the water? They get special rates when buying houses, they get special allotments in housing projects, they get all the special treatment, etc. But what is so special about them?

    They are nothing but a group of parasites who suck blood from their hosts and who turn ungrateful when they are told that they are parasites. Remember the incident of Hishamuddin leading a group of “UMNO hooligans” threatening to burn down the Selangor Chinese Assembly Hall after being reminded that they were still unable to stand up after being given so much special treatment?

    Such is the attitude of these parasites, arrogant and unreasonable. But as I have said in my earlier articles, this is analogous to the fable of “The Ant and the Grasshopper”. Let the grasshopper enjoy as much as he can and just wait till “winter” and we will see who will perish.

    These people only know how to build castles in the air. What “WAWASAN 2020” are they talking about? That is but a mirage. Given half a century, they cannot even stand up, so can they expect to fly in a matter of 12 or 13 years? “MALAYSIA BOLEH” is but a stupid slogan which should have been made up of three words instead of two. The word “MATI” has been left out from the end.

  32. #32 by dranony on Thursday, 16 August 2007 - 2:21 pm

    Much political capital has been made by UMNO politicians on the Income Disparity Ratios between Chinese and Malays, to impress that because there is a significant disparity between Chinese and Malays, that there is justification for continuation of racial policies ie NEP, to continue giving privileges to Malays.

    In the 12th August 2007 online version of utusan.com.my,
    See link here:
    “Jangan rasa bersalah bela agama, bangsa”

    Mohd Khir Toyo was quoted as saying,

    “‘‘Bagi setiap ringgit yang orang Melayu dapat, orang Cina dapat RM1.64 dan orang India RM1.30. Jurang pendapatan penduduk bandar dan luar bandar lagi lebar, hari ini saya difahamkan setiap ringgit orang luar bandar dapat, RM2.90 orang bandar dapat,’’ katanya.”

    Simply using the figures provided by Mohd Khir Toyo, as in the news article above,
    IDR of Malay:Chinese:Indian = 1: 1.64: 1.30
    IDR Urban: Rural = 2.90 : 1
    (I assume that the Urban Rural IDR is for ALL races in urban areas vs ALL in rural areas.)

    From the second IDR statement, it is evident that
    for every RM1.00 that a rural person makes, an urban person makes RM2.90.

    I’m not sure why Khor Toyo wanted to highlight that figure of 2.90, but perhaps it was to highlight that the Chinese, being predominantly urban, made much more money than the poor rural folk. Perhaps it was also propaganda to impress upon the audience (UMNO Bahagian Batu Gajah) that there were NO rural Chinese, and therefore no poor Chinese?

    However, imho, he may NOT have realised by highlighting this 2.90 figure, it serves to point out that the real disparity is NOT between Chinese and Malay, BUT instead between Urban Malay and Rural Malay!

    Let’s take the following figures as basis for calculation:

    The html file can be saved as html and opened in MS Excel.
    The actual numbers for population of ethnic groups and rural-urban groups can be calculated easily in an Excel,
    deriving from the total state populations and percentages given.

    Total Msia population: 23 million

    Total Malay population: 15.25million
    Total Chinese population: 6.01million
    Total Indian population: 1.75million

    The total rural population is about 8.87million,
    and total urban population is about 14.47million.

    From Khir Toyo’s impression, almost all the rural folk are Malays,
    ie of the 15.25million Malays, 8.85million are Rural Malays, 6.40 million are Urban Malays.
    (Means that there are as many Urban Malays as there are Chinese, who are almost all urban.)
    (Assume also for calculation that ALL Indians are urban.)

    From the above, for every RM1.00 which the Rural person makes, the Urban chap makes RM2.90.
    That means that the total made in that year by ALL “Rural+Urban” persons would be
    =(RM1 X 8.84million) + (RM2.90 X 14.47million)
    = RM 50.82million

    Using the same calculation, the total amount made by all races:
    Total Malay + Total chinese + Total Indian
    =(RM1 X 15.25million) + (RM1.64 X 6.01million) + (RM1.30 X1.75million)

    SO THAT WE CAN COMPARE the inter ethnic IDR together with the rural-urban IDR,
    we should change the base for the total amounts made by all the races, to be the same as that for rural-urban IDR
    (this would NOT change the ratios):
    Therefore, instead of RM1, the relative amounts made by each ethnic group is:
    Malay RM1.87 (RM1.00 X 50.82/27.38)
    Chinese RM3.07 (RM1.64 X 50.82/27.38)
    Indian RM2.43 (RM1.30 X 50.82/27.38)

    Put another way, the TOTAL amounts made by the different ethnic groups:
    Total Malay = RM1.87 X 15.25million = RM28.30million
    Total Chinese= RM3.07 X 6.01million = RM18.29million
    Total Indian = RM2.43 X 1.75million = RM4.23million
    (Total= RM50.82million)

    HOWEVER, WE MUST REMEMBER THAT, IN THIS CALCULATION, the initial base amount for the “Rural-vs-Urban” calculation STILL STANDS, since we have already adjusted for it!
    ie, if the total amount made is RM50.82million, the total amount made by the 8.84million Rural Malays is STILL RM8.84million.
    {Rural Malays is just a subset of Total Malays}

    Taking the total made by ALL Malays, ie RM28.30million, and subtracting RM8.84 million which the Rural Malays make,
    would be how much the Urban Malays make.
    THIS IS A WHOPPING RM19.46 million!
    Which is more than what the urban Chinese make!

    IN FACT, IF WE WERE TO DIVIDE THE RM19.46 million by the 6.40 million Urban Malay (Total Malay 15.25mil – Rural Malay 8.84mil = 6.40million Urban Malays),
    they would be getting RM3.04!

    That means that for every RM1 that a rural Bumiputera makes,
    an Urban Bumiputera makes RM3.04!


    It is the difference between Urban and Rural which accounts for much of the disparity.

    Of course, even amongst the Urban Bumiputera, I’m sure that there is a wide disparity – one single Datuk with an Istana of his own, will skew the income for maybe a hundred of his neighbours!

    Let’s hope that the rakyat finally will see who is the bogeyman eating up his share of the economic pie.

    Let us compare Urban Chinese with Urban Bumiputera, and not (urban) Chinese with ALL Bumiputera.
    That would be an unfair comparison, as with any non-communist country, esp one which is rapidly developing, there is bound to be significant urban-rural income disparity.

    To try to achieve Chinese-Bumiputera income equality would be an impossibility, unless ALL of the Bumiputeras become Urban!

    You will note that, in the calculation above, an important assumption is made, on the basis that
    “ALL Chinese are urban,
    and ALL Rural are Malay.”
    Obviously, this cannot be strictly true.
    HOWEVER, it is my humble opinion that, even if the real figures are used (can anyone from the Statistics Dept provide them?), the greater disparity will still be more evident between Urban-Rural rather than between Chinese-Malay.

    Therefore, using a Chinese-Malay disparity is spurious, even dishonest, because if we were to use Urban Malay-Rural Malay comparison, it will also show up a marked disparity.
    Therefore, to continue to point to a Chinese-Malay disparity to justify Racial Policies, is plain dishonest.

    There may still, however be a slight disparity between Urban Chinese and Urban Malay, but this should not be substantial enough to justify any major policies changes to correct it.

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