The Real Estate and Housing Developers’ Association Malaysia (REHDA) has called on the government to help curb anti-competition and profiteering practices within the property industry.
They explained that such practices hurt the country’s property sector as the prices of materials continue to increase, which will eventually cause a spill over effect on the public.
“Biggest concern for the supply chain is claims of anti-competition and severe profiteering by certain people in the supply chain. We’re not pointing the fingers at anyone but there have been claims and suggestions from our association members and our statement is quite general,” said REHDA president Datuk Soam Heng Choon as quoted by Malay Mail.
With this, he urged the government to engage with the association, suppliers and developers to ensure that such practices is not happening in Malaysia.
“For example, for goods made in Malaysia, the government can check if there is any profiteering or anti-competition. If there are any of the supply chains monopolised by only three or four suppliers, those are things we hope the government can look into,” he stated.
Soam hoped the government agencies could engage with suppliers individually so they could understand the market better, learn the reason for the price increases and whether the hike was valid.
He pointed that it was akin to the recent uproar over the hike in the prices of vegetables and chickens, in which the government was forced to check for themselves.
“A lot of noise was made about the price increase by the developers without knowing the supply chain and the reasons. But this can be reflected very easily, especially for public companies,” said Soam.
“When they announce their year-end results then you will know if there is any anti-competition or profiteering or not. It’s quite clear. If it’s a private company it’s more difficult.”
“For a private company suddenly you have super profits then there must be certain reasons why profit has gone up so much,” he added.
Soam made the statement during a press conference to highlight issues relevant to marketing and selling of real estate.
The issues highlighted include how to end financing challenges relating to financial institutions, slow adoption of digital services as well as negative buyers’ market which is coupled with pressure from external forces.
Image source from Malay Mail