By DayakDaily Team
KUCHING, Sept 2: The Sarawak Housing and Real Estate Developers’ Association (Sheda) advisor Dato Sim Kiang Chiok views the federal government’s proposal to introduce a new law to protect buyers of abandoned commercial shoplot projects as unnecessary in Sarawak, warning that such a move would increase compliance costs for developers which would eventually be passed on to purchasers.
Sim said abandoned commercial shoplot projects are not a widespread or systemic issue in Sarawak, as the market remains stable and contractual obligations between developers and buyers are already well-defined under existing laws.
“To suggest that a new layer of legislation is required does not reflect the reality on the ground in Sarawak,” he stressed in response to the Ministry of Housing and Local Government’s announcement of a study to draft such a bill.
He emphasised that buying commercial shoplots is fundamentally different from purchasing residential homes, as the latter is a basic necessity and therefore enjoys special protection under the Sarawak Housing Development (Control and Licensing) Ordinance 2013.
“Commercial shoplots are an investment decision—often made by financially capable and well-informed buyers who fully understand the risks and rewards involved. The existing legal and court system, particularly through contract law, already provides sufficient recourse for investors should a dispute or default arise,” he explained in a statement today.
Sim cautioned that additional regulations could raise shoplot prices unnecessarily as developers would be forced to factor in higher compliance costs.
“Over-regulation could also stifle investment, reduce the overall supply of new commercial developments, and discourage innovation and entrepreneurship in the commercial property market,” he added.
While expressing support for measures to protect homebuyers and promote affordable housing, Sim maintained that there is no compelling case for further legislation on commercial shoplot purchases in Sarawak.
“The existing system is sufficient, the market is functioning, and Sarawak’s circumstances are distinct. Introducing additional laws risks slowing Sarawak’s economic growth, weakening investor confidence, and discouraging private sector vibrancy,” he said.
On Aug 27, Housing and Local Government Minister Nga Kor Ming told Parliament that the ministry is conducting a study to propose a new bill to ensure commercial shoplot buyers are also protected under the law, noting that the current Housing Development (Control and Licensing) Act only applies to residential property purchases. — DayakDaily
