KUALA LUMPUR: Pakatan Rakyat members of parliament (MPs) yesterday urged the Ministry of Finance to withdraw from Parliament the proposed amendments to the Valuers, Appraisers and Estate Agents Act 1981 (VAEA Act) which had already raised the ire of property industry players.

The main contention against the proposed changes to the VAEA Act is that only valuers registered with the Board of Valuers, Appraisers and Real Estate Managers would be allowed to practise property management should the amendments be passed by Parliament.

PKR vice-president Sivarasa Rasiah said the proposed amendments to the VAEA Act were “problematic” as it would create a “monopoly” in property management by valuers to the detriment of over two million strata-titled flats, apartments and condominium owners.

“The exclusivity granted through a monopoly will encourage corruption, rent-seeking and back-door activities in the property management industry. The cost of these negative impacts would be passed on to owners with no proportionate increase in service value,” Sivarasa said at a press conference in Parliament’s lobby yesterday.

Sivarasa (Subang-PKR) added that property owners should be allowed the freedom to choose their property managers, a freedom which would be “removed” should the proposed amendments to VAEA be passed.
Sivarasa says the proposed VAEA Act would create a 'monopoly' in property management by valuers.
Sivarasa also estimated that owners of stratified properties would have to collectively fork out, an additional RM3 billion to RM4 billion or more annually in fees which would be shared out amongst some 800 registered valuers.

Sivarasa, a practising lawyer, added that the proposed amendments to the VAEA Act appeared to be in conflict with the Competition Act, Consumer Protection Act 1999, Building and Common Property (Maintenance and Management) Act 2007 and the Strata Titles Act (1985).

The government should consult all relevant stakeholders and industry players before proposing any future amendments to legislation, said Sivarasa.

The amendments to the VAEA Act was reportedly proposed over five years ago but did not proceed after heaving criticism from the real estate industry.

The property management business is said to be worth between RM3 billion and RM5 billion annually.

Since it came to light, the proposed amendments had been heavily criticised by property industry stakeholders including the Building Management Association of Malaysia (BMAM), Real Estate and Housing Developers Association of Malaysia (Rehda), Malaysian Association for Shopping and Highrise Complex Management, Malaysian Institute of Architects and the Institute of Engineers Malaysia.


This article appeared in The Edge Financial Daily, October 14, 2010.

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