The Building Management Association of Malaysia (BMAM) is up in arms against the Board of Valuers, Appraisers and Estate Agents who had proposed to amend the Act.
The proposal was tabled in Parliament for first reading at its last session in July.
"If this (the amendments) takes place, the management fees (of high-rise residential units) will increase by 100 per cent, and many people including foreign investors will lose interest in buying condominiums and apartments," said (BMAM) president Datuk Teo Chiang Kok in a press conference to voice its dissatisfaction with the proposed amendments yesterday.
Teo said the amendments would encompass all facets of property ownership and monopolise the functions of property management including building and leasing management, general maintenance and facilities management.
There are almost two million strata title residential holders in the country and based on a minimun fee of RM50 per unit per month, valuers stand to make RM1.2 billion annually, he said.
"It's indeed a very lucrative business and that is why monopoly is not good ... We urge the government to do something about it as this is their (valuers) second attempt to see the amendment through after their first attempt five years ago failed," he said.
Teo also said that the property management industry should not be monopolised by several hundred valuers, but should instead be allowed to operate in an open market.
"We have a pool of good talent who can readily do the job but if the proposed amended Act comes in force, there is definitely going to be a brain drain in this sector ... even those taking diploma courses for this type of work will not be able to find jobs," he said.
Teo said shopping complexes and malls would also not be spared as their shareholders will not be allowed to pick the people they want to manage their buildings.
BMAM has asked for an appointment to meet the Minister of Finance to sort out the issue, he added.
By Business Times
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