(This article is a follow-up on a previously published article entitled “Is there a need to reinvent the wheel”, which was published on property360online on May 1, 2016).
BY PEPS & RISM
The Building Managers Association of Malaysia (BMAM) has called for the setting up of a new board of building managers under the auspices of the Ministry of Urban Wellbeing, Housing and Local Government (KPKT).
As practising property managers regulated by the Board of Valuers, Appraisers and Estate Agents Malaysia (BOVAEA), we would like not only to respond and place the facts correctly but also to make suggestions that will work amicably for all concerned.
Last Friday in Real Spaces, the first part of our response was published. For the rest of the grounds brought up by BMAM, we submit herewith our answers as follows.
- Remove property management functions from BOVAEA
BMAM has called for a removal of the property management function provided within the BOVAEA. The Strata Management Act 2013 (SMA 2013) and its predecessors were and still are concerned with the maintenance and management of strata buildings. There are hundreds of properties which are not under any strata titles. The management of these units is outside the SMA 2013 and hence, the Commissioner of Buildings (COB) will not have any power to regulate nor manage the maintenance or management of these buildings.
There is a need, far more important, to keep the status quo, to keep the property management function within BOVAEA because it is comprehensive and has systems, controls and standards for performance of property management in place for 35 years. We do not think there is any need to remove this from the Valuers, Appraisers and Estate Agents Act 1981 (Act 242). In fact, the SMA 2013 does go to the extent of defining that a property manager is one who is registered to carry out property management.
Under the guidance of the Minister of Finance, BOVAEA has been in existence for the last 35 years without any problem as the statutory regulatory board for professional property management practice. We do not foresee any problem in the future too as the BOVAEA comprises board members who are qualified general practice surveyors (aka property managers, valuers and estate agents).
The general practice surveyors have undergone tertiary courses in real estate management (aka property management and valuation) at university level, carried out at least two years of internship and then passed the professional test of competency. Thereafter, a general practice surveyor will then choose to specialise in property management, valuation or estate agency. Hence, it will take at least five to six years before a professional property manager can be registered and licensed by BOVAEA to carry out property management practice subject to regulatory control and disciplinary action and the Malaysian Property Management Standards by BOVAEA.
- Opening up, liberalising and extending the property management function to other allied and related property professions
BOVAEA has seen it fit to open up, liberalise and extend the property management function to other allied and related property professions so that the multi-disciplinary knowledge and acumen they bring to the property management function can be best utilised to ensure that the urban fabric of our cities are enhanced. BOVAEA has submitted to the Ministry of Finance (MOF) an amendment bill on Act 242, which has been approved by the Attorney General’s Chambers, to open a Register of Property Managers where existing competent property managers (aka building managers) and those with allied degrees can be admitted for registration during a 12 months’ moratorium period. Unfortunately, this piece of very important amendment to the current legislation has not been brought to Parliament as yet. If it were to be done, then all the problems facing the registration, regulation and controlling of the property management function can be resolved once and for all.
We are also highlighting the plight of four public universities and three private universities which are producing 500 property managers a year. There are in the country more than 5,000 graduates in property management who are not registered to be valuers but are qualified to be registered as property managers. However, they are unable to do so because the abovementioned amendment has not yet been put through to Parliament.
- Set up a new board of building managers
For the above reasons elucidated above, the matter of setting up another board to manage property is totally redundant and unnecessary. The existing machinery should be maintained to strengthen the property or building management function.
We therefore urge the Minister to act upon the recommendations by BOVAEA and the highly valued recommendations of the Attorney General’s Chambers and amend the current Act 242 so that we can move forward in the proper administration, maintenance, management and control of strata and non-strata buildings in Malaysia. We strongly urge that like most countries in the world, we need only one Act, not two, for the management of buildings in Malaysia.
In conclusion, there is certainly no need to reinvent the wheel.
PEPS is the acronym for Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia
RISM is the acronym for Royal Institution of Surveyors Malaysia