KUCHING: The proposal by the federal government to introduce a new law protecting buyers of abandoned commercial shoplot projects has been deemed unnecessary in Sarawak.
Sarawak Housing and Real Estate Developers’ Association (SHEDA) Kuching branch advisor Datuk Sim Kiang Chiok stressed that such cases are not widespread in the state and the market remains relatively stable, guided by clear contractual obligations under existing laws.
“In Sarawak, abandoned commercial shoplot projects are not a systemic problem.
“Developers and purchasers are already bound by contract law and existing regulations, which provide sufficient recourse should disputes or defaults arise,” he said in a recent statement.
Sim pointed out that commercial shoplot purchases differ fundamentally from residential housing.
“Housing is a basic necessity and rightly enjoys special protection under the Sarawak Housing Development (Control and Licensing) Ordinance 2013.
“Shoplots, however, are an investment decision, usually made by financially capable buyers who understand the risks involved,” he said.
He cautioned that imposing additional regulations would increase compliance costs for developers, inevitably raising prices for buyers.
“Over-regulation could stifle investment, reduce the supply of new commercial developments, and discourage innovation and enterprise in the property sector,” he added.
Sim added that while he supports measures to protect homebuyers and promote affordable housing, further legislation on commercial shoplots is unnecessary in Sarawak’s context.
“Additional laws risk slowing economic growth, weakening investor confidence, and reducing the vibrancy of the private sector.
“To remain competitive, Sarawak must allow the commercial property market to operate with stability and without unnecessary interference,” he said.
Recently, the Housing and Local Government Ministry has announced plans to introduce a new bill to protect buyers of abandoned commercial shoplot projects.
Its Minister Nga Kor Ming said the current Housing Development (Control and Licensing) Act only applies to house buyers, not those who purchase commercial premises.
“Shops are commercial premises and therefore fall outside the scope of the law.
“The ministry is conducting a study so that we can propose a new bill to ensure shop buyers are also protected under the law,” he said during the recent Dewan Rakyat session.
