THE Real Estate and Housing Developers’ Association Malaysia (Rehda) Penang is hoping to have a meeting with the Penang government, local governments and the relevant authorities soon to mitigate the challenges of the property development industry.
Rehda Penang chairman Khoo Teck Chong proposed for the meeting to be held as soon as possible.
“Currently, our biggest challenges are the sharp increase in building material prices and the shortage of labour in the industry.
“These have impacted the cost of doing business. Tender prices are skyrocketing and those in the construction (industry) are finding it hard to manage their costs.
“Personally, I feel that the inflation will hit us hard and I would say that the storm which we will be facing will be quite rough.
“We should look at how we can lower our cost of doing business.
“We hope that the state, local councils and the relevant state components can hold a special meeting with Rehda Penang to discuss and exchange ideas about how we can weather this situation together,” he said in his speech during the Rehda Penang Fellowship Dinner 2022 event at the Old CRC Restaurant in Jalan Padang Victoria this evening.
On the national Home Ownership Campaign (HOC) from June 2020 to Dec 31 last year, Khoo said Rehda Penang had registered over 20,800 units with a value of about RM17.6 billion.
“We have managed to sell 9,869 units with a value of approximately RM6.5 billion during the period.
“Thanks to the HOC, we have sold almost 50% of the total registered units. But, we still have about RM11 billion worth of properties unsold.
“We did not manage to get any national HOC extension this year. However, I would like to take this opportunity to thank the Penang government for its own Penang HOC campaign which is extended until the end of this year.
“The incentive can help reduce the burden of the (property) development industry,” he said.
Khoo said he was grateful for being able to hold this fellowship dinner this year.
“Two years have passed since our last gathering. It is a blessing for us to be able to gather again after we have gone through the Covid-19 war,” he said.
Chief Minister Chow Kon Yeow said the Penang government has always been open to meetings and discussions with the industries and organisations for the betterment of the state and its people.
“I managed to go through part of the report by Rehda Institute on my way here, and I appreciate and acknowledge the issues raised by the institute.
“However, some issues are beyond the state government and they require a wider spectrum of stakeholders, in particular, the Federal, state, local government and the private sector to address such issues,” he said.
In his speech, Chow also said that Penang’s quest to provide affordable, quality homes, and to bring continuous progress and prosperity to the state could only be achieved through the cooperation of all parties including Rehda.
“We can be able to achieve this through public-private partnerships, dialogues, and consultations.
“We treasure Rehda’s role as the link between the government and the private sector in ensuring that the developers’ views are taken into consideration by the relevant authorities and government agencies.
“The state government appreciates the commitment by Rehda to nation-building and betterment of life through sustainable property development,” he said.
Chow said the commitment by all parties enabled the country and the state to move towards economic recovery.
“The impact of Covid-19 has been great, but it has not impeded the growth of the state’s approved manufacturing investments for the year 2021.
“Our industrial performance continues to excel despite the challenges due to Covid-19.
“Penang’s total approved manufacturing investments hit a record high of RM76.2 billion in 2021. The investment projects obtained in 2021 are expected to generate 12,000 job opportunities in the state,” he said.
The event organising chairman Datuk Toh Chin Leong paid tribute to the late Datuk David Fong, a veteran member of Rehda Penang who passed away last year.
Toh regarded Fong as a great friend who would go all out to get things done.
“Our dear friend has left a high standard for us to follow. His absence cannot be replaced,” Toh said, reminiscing the support given by Fong when Toh was the Rehda Penang chairman.
Toh also expressed his sincere appreciation to the Rehda Penang organising committee members for making the fellowship dinner a success.
“Foster strong friendship with one another and enjoy yourself this evening,” he said.
Also present were Rehda Penang immediate past chairman Tan Hun Beng and Rehda Penang members.
Story by Christopher Tan
Pix by Alissala Thian