THE 50% discount on development charges is given to all projects approved in Kuala Lumpur from this month onwards.
Deputy Federal Territories Minister Datuk Loga Bala Mohan clarified that it was not only applicable to high-density development but across the board.
“It is given across the board to generate gross domestic product. Any development will get the 50% discount, in the eligibility period.
“We want development in the city to go on, that is why DBKL decided to give 50% off for development charges.
The deputy minister was commenting on StarMetro’s front page story yesterday, “Spurring KL’s growth,” which quoted DBKL as saying the discount was offered for high-density projects and those involving change of land use to a higher status.
Commenting on the state of infrastructure in line with the development in the city, Loga Bala said they were studying various ways to improve the traffic situation.
“We are considering limiting carparks or parking bays to force the public to use public transport. The Government is currently enhancing public transportation in a big way with the various rail lines.
“We are studying various ways to reduce the usage of private cars such as charging levy for entering central business areas, imposing higher parking charges and higher development charges for parking bays.
“We hope to formulate a tangible solution by 2017, after the completion of the Mass Rail Transit,” he said.
Malaysian Institute of Estate Agents (MIEA) president Erick Y.T. Kho said it was important to make sure that the savings from the development charges discount be transferred to the consumer in terms of lower property prices.
“The initiative is good in terms of providing affordable housing.
“However, there is an oversupply in high-end residential properties at various locations. DBKL should be careful about approving such developments with high density which will worsen the market,” he said.
Agency PPC International chief executive officer Siva Shanker, who was also MIEA immediate past-president, questioned how much would the reduced development charge affect the cost of project.
“Other costs continue to rise. Will the discount be passed on to the consumer or used to cover other development costs?
“I do not think there will be a significant reduction in property prices. Maybe DBKL should find a way to contain the cost instead,” he said.
