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The Star
2 days ago
- Business
- The Star
Second chance for stalled homes
PETALING JAYA: The Housing and Local Government Ministry has implemented several recovery mechanisms to address abandoned housing projects, including direct mediation with buyers and developers, project completion strategies and the utilisation of public funds for selected developments. The ministry said it facilitates negotiations between affected purchasers and developers or appointed liquidators on reimbursement terms. Where viable, stalled projects may be completed by either the original developer, a 'white knight' or the liquidator, with the aim of obtaining Certificates of Fitness for Occupation or Certificates of Completion and Compliance. It added that specific abandoned projects might be revived using government development allocations to ensure homebuyers receive habitable housing. The ministry stated that it also conducts regular site visits, monitors rehabilitation progress and collaborates closely with state governments, local authorities and technical agencies to expedite resolutions. According to the ministry, a total of 112 abandoned private housing projects have been recorded across Peninsular Malaysia as of May 31, 2025, with Selangor accounting for the highest number. Selangor recorded 42 abandoned projects – representing 37.5% of the total – followed by Kelantan with 18 and Terengganu with 14. The ministry said it remains committed to addressing the issue through a task force for sick and abandoned private housing projects, which has so far rehabilitated 21 projects involving 2,244 housing units. 'The government is fully committed to resolving sick and abandoned housing projects through a structured approach based on four pillars – tracking, resolution, prevention and forward planning,' the ministry said in response to a query from The Star. However, Federation of Malaysian Consumers Associations (Fomca) secretary-general Dr Saravanan Thambirajah said many of these projects – some idle for over a decade – had deteriorated, leaving thousands of homebuyers in the lurch while at the same time, posing serious safety and health hazards. 'These long-abandoned sites are painful symbols of systemic failure. They are not only physical hazards but also a source of emotional and financial devastation for families who invested their life savings or took out long-term loans for homes they will never live in. 'Many affected buyers are still repaying housing loans for properties they can neither occupy nor sell, with little legal recourse to recover their investments. 'Some of the projects were approved by local councils and licensed by authorities, yet when things collapse, the buyers are left to bear the consequences alone. There's often no legal remedy. First-time buyers and young families are especially vulnerable,' he said when contacted. Fomca is calling for structural reforms, including the establishment of a dedicated federal task force to identify and manage chronically abandoned projects. Developments, which have been idle for more than a decade, should be legally declared derelict and channelled through a fast-track process involving safety inspections, title audits, and eventual repurposing. 'Where feasible, such buildings should be converted into public assets, like social housing, youth centres or care homes. This will require legal amendments to enable compulsory acquisition, as well as partnerships between local councils, NGOs and housing trusts.' He also proposed the creation of funding mechanisms, such as federal grants, housing rejuvenation bonds and social impact investments, to support repurposing efforts. He urged authorities to empower residents' associations and civil society groups to report early signs of abandonment, supported by mobile platforms that allow GPS-tagged complaints and photos. 'Most importantly, enforcement agencies must respond swiftly and transparently. If we do nothing, property values will fall, urban decay will spread, and an entire generation of disillusioned Malaysians will be left paying for homes that were never built,' he said.
The Sun
07-07-2025
- Politics
- The Sun
N. Sembilan ban on drinking alcohol in public sparks concern
PETALING JAYA: The Negeri Sembilan government decision to ban alcohol consumption in public recreational spaces has sparked strong reactions from civil society groups and consumer rights advocates who stress that the move risks undermining individual freedoms, harming tourism and fostering intolerance in Malaysia's plural society. The ban, which took immediate effect, covers parks, beaches, fields and playgrounds. Menteri Besar Datuk Seri Aminuddin Harun said the move was made in response to public complaints about disturbances and litter left by people drinking at such places. 'We have received many complaints about individuals drinking and leaving behind bottles and packaging,' he said after chairing the state executive council meeting. He stressed that alcohol is not entirely banned, and people may still drink at shops or private premises, just not in public spaces. Violators face fines of up to RM2,000, with enforcement to be carried out by local councils and police. Alliance for a Safe Community chairman Tan Sri Lee Lam Thye said the policy could lead to unintended consequences, including for guests staying near recreational areas. 'What if someone is staying at a rest house near a beach or park? Are they not allowed to have a quiet drink in their own space? That would be unreasonable.' Lee said the actions of a few should not result in blanket restrictions for all. 'For non-Muslims, having a beer to unwind is a personal lifestyle choice. Not everyone who drinks misbehaves. Yes, incidents happen but they are the exception, not the norm,' he said. He added that Malaysia already has laws to address disorderly behaviour and that targeted enforcement, not sweeping bans, is the solution. 'If someone is causing trouble, report them to the police. We should not restrict the rights of many because of a few,' he said. 'If this trend continues, it could pave the way for similar restrictions elsewhere, eroding personal freedoms.' Lee also emphasised the importance of inclusivity. 'Public policy must reflect mutual respect and constitutional rights, including the legal right to consume alcohol responsibly.' Federation of Malaysian Consumers Associations (Fomca) CEO and secretary-general Dr Saravanan Thambirajah echoed similar concerns, stressing that any policy limiting personal freedom, especially for non-Muslims, must be carefully reviewed. 'Malaysia is a multi-religious, multi-cultural nation. A blanket ban risks infringing the rights of those who consume alcohol legally and responsibly,' he said. Saravanan advocated strict enforcement of existing laws against being intoxicated in public and behaving in a disruptive manner, rather than implementing blanket bans. 'The issue lies with behaviour, not the beverage,' he said, adding that disturbances are caused by irresponsible individuals. He added that the ban could negatively impact the state tourism sector and small businesses that rely on alcohol sales. 'Beachside cafes, bars and convenience stores often cater to tourists. This ban could deter visitors and disrupt local livelihoods,' he said. Saravanan added that inconsistent state policies could confuse travellers and damage Malaysia's image as a tourist friendly destination. Fomca also cautioned against moralistic policymaking that overlooks the complexities of a plural society and urged for promotion of responsible consumption and civic-minded behaviour. 'Drinking should be confined to licensed, appropriate venues. Consumers must avoid unsuitable areas such as playgrounds or family zones. 'Littering, public nuisance or disorderly conduct should never be tolerated regardless of what is consumed,' he said. He added that any rule affecting diverse communities should be preceded by open dialogue. 'Rather than blanket bans, let's focus on targeted enforcement and public education, which are measures that uphold rights while ensuring harmony in shared spaces,' Saravanan said.
The Star
04-07-2025
- Business
- The Star
‘Swift action key to price stability'
Subject to tax: Fruits for sale at shops in Petaling Jaya. — AZHAR MAHFOF/The Star PUTRAJAYA: Among ways to prevent unnecessary price hikes is to strengthen existing mechanisms for price monitoring and enforcement, says a consumer rights activist. Federation of Malaysian Consumers Associations (Fomca) secretary-general Saravanan Thambirajah said this is one of the most immediate actions the government could take. 'When prices of essential items are being hiked up arbitrarily or without justification, there must be swift investigation and enforcement by the authorities. 'The Domestic Trade and Cost of Living Ministry's call for consumer associations to serve as its eyes and ears is a good initiative, but it will only be effective if reports from the ground lead to real action,' he said. Saravanan added that the government must focus on transparency to prevent the public from becoming victims of inflated prices or being wrongly taxed. 'When consumers know the market price of goods, they are in a better position to make informed choices. 'Fomca has begun receiving feedback from consumers regarding price hikes associated with the recent increase in the SST (sales and service tax) from 6% to 8%. 'Consumers are still confused about which products and services are affected. 'This confusion creates a fertile ground for abuse. Some traders may raise prices unjustifiably, citing the tax increase as the reason, even for items that are not actually taxed,' he added. Saravanan said Fomca's role was not only to inform and educate consumers on their rights but also to relay their concerns to the relevant enforcement bodies. 'For the mechanism to work well, consistent and visible enforcement is needed to ensure traders do not misuse the sales tax revision as a pretext for profiteering,' said Saravanan. Similarly, Malaysian Consumer Friendly Organisation vice-president Azlin Othman said the government should monitor logistics costs as well as establish a more balanced tax policy and make regular inspections at business premises. 'Quick and consistent action is important to protect consumers and maintain price stability,' said Azlin. Consumers' Association of Penang president Mohideen Abdul Kadeer said stronger enforcement was needed instead of waiting at the last moment for consumers to lodge complaints of getting cheated. 'The government should set up help desks or mobile units to proactively receive feedback. 'Traders who cheat consumers must be brought to court and face the maximum penalty,' added Mohideen.
New Straits Times
27-06-2025
- Business
- New Straits Times
Fruit SST exemption a step in the right direction, but broader reforms needed, say consumer and health groups
KUALA LUMPUR: Consumer and health groups say while the exemption of apples and oranges from the Sales and Service Tax (SST) is a positive move, it falls short of tackling deeper issues of food affordability, nutrition and profiteering. Federation of Malaysian Consumers Associations (Fomca) chief executive officer Datuk Dr Saravanan Thambirajah said the measure was too narrow and lacked a coherent food policy direction. "While the exemption of apples and oranges from SST may offer some short-term relief, Fomca does not view this move as fully adequate or genuinely welcome. In principle, food — being a basic human need — should never have been subjected to SST in the first place," he said. Malaysia Consumers Movement deputy president Beninder Johl said the taxation of fruits in any form was misguided. "We don't support taxing fruits at all. Imported fruits aren't only consumed by the rich — middle-income families buy them, too. We should be taxing unhealthy foods instead, not nutritious ones." He also pointed out that local fruits were not necessarily more affordable. "If we force a shift away from imported fruits, demand for local fruits could rise and push prices up further." He said any expansion of SST must be backed by targeted subsidies, cash aid and support for local agriculture. Consumers Association of Penang president Mohideen Abdul Kadeer said while SST exemptions for basic items were welcome, enforcement must be tightened to prevent price manipulation. "We support the imposition of SST on non-essential items. But any cost increase may be passed on to consumers." He added that Malaysia's food security was under threat due to over-reliance on imports. "We are even importing 'local' varieties — once abundant in our orchards — from Thailand. Fruits like mangoes, guavas and melons are now being brought in from overseas. The government must urgently invest in domestic fruit cultivation." He urged the Domestic Trade and Cost of Living Ministry to ramp up inspections and price transparency to prevent profiteering. Meanwhile, the Malaysian Dietitians' Association supported the exemption as a strategic measure to help low-income families, especially those managing chronic illnesses. "This tax exemption helps these families maintain access to nutritious food without additional financial strain," said its president, Dr Barakatun Nisak Mohd Yusof. She said apples were a commonly preferred fruit among the B40 group due to their shelf life and affordability, particularly for those living with diabetes and high blood pressure. "Currently, 95 per cent of Malaysians do not meet the recommended daily intake of fruits and vegetables, so even small policies like this can make a meaningful difference in public health." Dr Barakatun Nisak added that affordability alone was not enough. "We need to make healthy food not just affordable but also reachable and realistic. Policy and ground-level action must work hand-in-hand to support real behaviour change." Earlier, Prime Minister Datuk Seri Anwar Ibrahim announced that imported apples and oranges would be exempt from SST following a cabinet decision made on June 25.
The Star
27-06-2025
- Business
- The Star
Fomca: Financial access at risk
PETALING JAYA: Ahead of the implementation of service tax on financial services on July 1, groups have voiced concerns, saying that this is likely to drive up costs for businesses and the regular people. Federation of Malaysian Consumers Associations (Fomca) vice-president Datuk Indrani Thuraisingham said ordinary Malaysians would be the most impacted by the 8% service tax on fee-based financial services. Indrani said the small charges may seem as a trivial amount but it is a huge sum when multiplied by the millions of transactions. 'When Malaysian banks are riding on massive profits and control trillions in assets, why should struggling consumers be asked to chip in more. 'This is taxing basic financial access, not luxury,' said Indrani. Indrani called on Bank Negara Malaysia and the Finance Ministry to immediately review this new ruling. 'The principle of consumer fairness must be upheld,' said Indrani, adding that banks should absorb part of this tax, especially on low value and high-volume services. Indrani also said consumer groups should be given the space to scrutinise every fee schedule so that banks should be held accountable and thereby prevent opportunistic fee hikes disguised as tax adjustments. CLICK TO ENLARGE 'If this goes ahead unchecked, the government can expect deeper financial exclusion, rising household debt and widening inequality,' she said. Fomca secretary-general Saravanan Thambirajah said the announcement by Putrajaya raises concerns for everyday consumers on how this would affect their financial service experience. 'In real terms, this tax means that consumers will see higher charges for many common services offered by banks. 'Even services used by small businesses and self-employed individuals such as overdraft facilities, bank guarantees and remittance services are likely to be affected,' said Saravanan. Saravanan also said there is a concern that this move would set a precedent for banks to gradually increase fees under the guise of tax compliance. 'Once consumers grow accustomed to higher charges, more subtle fee revisions should be introduced over time,' said Saravanan. SME Association of Malaysia national president Chin Chee Seong said as the 8% service tax rate predominantly affects commission-based financial services, SMEs are likely to see an increase in cost of doing business. Chin said businesses are already bracing for the SST on commercial rental and leasing services, barring which rental costs have already increased by 20%-30% from a year ago. 'On top of that, they will also be dealing with the mandatory 2% Employees Provident Fund contribution for foreign workers and the restructuring of electricity tariff. 'The cost of doing business is getting higher and higher. It will definitely affect our cashflow. It doesn't look good for the industry and the economy,' Chin said. 'If all of these are coming together, how are we going to plan our next few months especially as we have passed the mid-term. It is going to be tougher for us to do business,' Chin added. Chin said there has to be more clarity on certain aspects of the tax system for instance on the RM500,000 threshold on taxable financial services. 'Items such as luxurious items, (imported) fruits, I think that is clear cut and they can go ahead. But when it comes to financial services such as leasing and rental, I think that should be deferred first,' he said. 'The government should understand that we are not against their policies but these policies must be more considerate of the difficulties of doing business. The cost of doing business is high while consumer spending is low,' Chin said.
