Subramaniam Arumugam, President, Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector, Malaysia (PEPS)
Contributed by Subramaniam Arumugam
As the president of the Association of Valuers, Estate Agents, Property Managers and Property Consultants in the private sector (PEPS), I am privileged to represent real estate professionals across four pivotal domains: Valuation, Estate Agency, Property Management and Consultancy. Our association has long served as an umbrella body for these essential professions, addressing a wide range of issues that affect practitioners and industry stakeholders alike.
Looking ahead to 2025, three critical challenges emerge as focal points for the profession. These challenges not only impact our members but also carry significant implications for the nation’s economy and the broader property ecosystem.
Property transactional data sharing restriction
The valuation fraternity has long relied on comprehensive property transactional data provided by government agencies under the purview of the Ministry of Finance. This data is crucial for producing accurate property valuations, which, in turn, inform decision-making for financial institutions, developers, investors and policymakers.
However, the recent imposition of restrictions on sharing complete data—specifically, the exclusion of information on transacting parties—has raised alarms across the industry. Without full access to accurate data, valuers risk producing incomplete analyses, leading to potential distortions in property market trends and economic outcomes, including overvaluations.
Property development is a key driver of Malaysia's economy, encompassing diverse professional services and powering various vendor supply chains. Misleading statistics on property demand and supply can significantly harm this vital sector, jeopardising its ability to support national development effectively.
It is imperative to find a resolution that ensures transparency, maintains data integrity and safeguards the interests of all stakeholders, including the broader economy.
SRO 2023 and its impact
The Bar Council’s introduction of Rule 5 of the First Schedule under the Solicitors’ Remuneration Order 2023 (SRO 2023) has created significant conflict with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVEAP) and Act 242. By allowing lawyers to participate in property sales and charge a 3% fee, the SRO 2023 effectively encroaches on the professional domain of estate agents.
This development raises several concerns. Firstly, it creates confusion among industry players and consumers as the roles of lawyers and estate agents become increasingly blurred. Secondly, it poses a conflict of interest when lawyers, expected to act in the best interest of their clients, stand to benefit financially from commission-like fees.
Lawyers, as custodians of the law, must remain mindful of their roles in safeguarding the rights and interests of the public. Their involvement in estate agency practices undermines the integrity of the Valuers, Appraisers, Estate Agents and Property Managers Act 242.
PEPS is deeply concerned about this issue and is engaging with the Bar Council and the Attorney General’s Chambers to establish clear boundaries and ensure fair practices that protect the estate agency profession's integrity
Challenges in Property Management: The Proposed Board of Building Managers
Property management has been properly regulated under BOVEAP and Act 242 for over four decades. The enactment of the Strata Management Act 2013 (Act 757) further recognised the role of registered property managers, underscoring professionalism in the industry.
However, the recent proposal by the Housing and Local Government Ministry (KPKT) to establish an independent Board of Building Managers is both unnecessary and counterproductive. This initiative is widely viewed as serving the special interests of certain developers rather than property owners or residents.
The proposal undermines Act 242 and directly conflicts with Act 757, which emphasises the need for independence between developers and the management of their completed developments. Such a move threatens to erode decades of progress, professionalism and public trust in regulated property management.
PEPS strongly opposes this initiative and questions the rationale behind developers seeking control over property management when their primary role as developers ends with project completion. We remain committed to advocating for the recognition and empowerment of registered property managers under the current regulatory framework to protect public interests and ensure professional accountability.
Moving forward
As we approach 2025, PEPS remains steadfast in addressing these challenges while advocating for policies that strengthen the property profession and benefit all stakeholders. The association is dedicated to engaging with authorities, industry players and the public to uphold professional standards and ensure the property sector continues to thrive.
Stay ahead of the crowd and enjoy fresh insights on real estate, property development and lifestyle trends when you subscribe to our newsletter and follow us on social media.
