KUCHING (Sept 2): It is not necessary to have further legislation on the purchase of commercial shoplots, said Sarawak Housing Estate Developers' Authority (Sheda) advisor Dato Sim Kiang Chiok.
He said the existing system was sufficient, the markets were functioning and Sarawak's circumstances were distinct, and introducing additional laws risked slowing the state's economic growth.
"For Sarawak to remain competitive and attractive for investment, it is crucial that the commercial property market is allowed to operate with stability and without unnecessary interference," he said in a statement yesterday.
Sim said that while he supported measures that protected homebuyers and promoted affordable housing, he saw no compelling reason for the federal government to introduce a new law protecting buyers of abandoned commercial shoplot projects.
"Firstly, in Sarawak, abandoned commercial shoplot projects are not a widespread or systemic problem.
"The market here remains relatively stable, and both developers and purchasers are already guided by clear contractual obligations under existing laws. To suggest a new layer of legislation is required does not reflect the reality in Sarawak," he said.
He said that secondly, the purchase of commercial shoplots was fundamentally different from purchasing residential housing.
"Housing is a basic necessity, and rightly enjoys special protection under the Sarawak Housing Development (Control and Licensing) Ordinance 2013. Commercial shoplots, however, are an investment decision often made by financially capable and well-informed buyers who fully understand the risks and rewards involved."
He said the existing legal and court system, particularly through contract law, already provided sufficient recourse for investors should a dispute or default arise.
"Thirdly, further regulation would only increase compliance costs for developers, which will inevitably be passed on to purchasers -- raising the selling prices of shoplots unnecessarily.
"Over-regulation could also stifle investment and reduce the overall supply of new commercial developments, which runs counter to market needs. More legislation and control will also reduce entrepreneurship and enterprise in the commercial property market, discouraging innovation and new investment," he said.