Latest news with #SaravananThambirajah
The Star
17-05-2025
- Business
- The Star
‘Define mixed development'
PETALING JAYA: Consumers and stakeholders have called for the proposed Real Property Development Act (RPDA) to clearly define what constitutes mixed development, which currently lacks protection under the law. Voicing their support for the government's proposal to introduce the RPDA, they say it is a long-overdue effort to protect buyers of commercial and mixed-use properties. They said mixed developments such as retail, commercial, small office/home office (Soho), small office/flexible office (Sofo) and small office/versatile office (Sovo) developments lack legal protection under the existing Housing Development Act (Act 118). Federation of Malaysian Consumers Association's (Fomca) chief executive officer Saravanan Thambirajah, emphasised the critical need for the RPDA to clearly define what constitutes mixed development. 'The Act must clearly state what qualifies as mixed development and ensure that all such projects are fully regulated – just like residential ones. 'This clarity is essential to ensure comprehensive regulation and protection for buyers in this evolving sector of the property market,' he said in an interview yesterday. Saravanan noted that robust safeguard measures are necessary to protect buyers from abandoned projects. 'We need mandatory developer licensing and financial checks, regulated accounts for buyer payments, strong and transparent Sale and Purchase Agreements, and a clear 'Option to Purchase' system to let buyers exit if a project is delayed.' He also advocated for the establishment of a dedicated tribunal or complaints platform for buyers affected by such issues. Reiterating the need for proper enforcement, he said: 'Laws are only as good as their enforcement.' 'We need a system that monitors projects, penalises rogue developers, and gives buyers timely updates and help when problems arise,' he said. Despite the support for the RPDA, Saravanan cautioned against hasty implementation. He stressed the importance of thorough consultation with all stakeholders – buyers, NGOs, legal experts and developers – to prevent unintended consequences or market instability. PMC Facilities & Real Estate chief executive officer Paul Puah Chee Keong lauded the RPDA, and called for the standardisation of assessment rates for commercial and residential developments. He highlighted a pressing issue where consumers are currently paying commercial rates for properties intended for residential or dwelling purposes. 'Even though it's a commercial title, many Soho, Sovo and service apartments are designed for dwelling purposes. 'It's only fair that these should fall under residential categories for taxes and utilities. The quit rent, assessment and utilities should be adjusted accordingly,' he said. Puah noted the RPDA's potential benefits in extending purchaser protections to commercial properties. 'If the new Act can extend protections similar to those in the Housing Development Act (HDA), it would be a significant improvement,' he said, referencing the HDA's existing safeguards like accrual accounts and transparent billing processes as 'sufficient.' He highlighted the importance of aligning the RPDA with the Strata Management Act to ensure seamless implementation by property management practitioners. 'The Act should clearly spell out management components for mixed developments. This includes service charges and other operational standards,' he said. Puah also stressed the necessity of clearly defining mixed developments within the RPDA. 'We need clarity to avoid confusion, as the market is already complicated by various terms like Soho, Sofo and Sovo. 'They are essentially the same,' he said, cautioning against being swayed by commercial interests that might manipulate definitions for profit. Strata Property Owners Association Selangor & KL advisor Law Hock Hua weighed in on the proposed Building Managers Act, which aims to tackle the widespread issue of inadequate property and building management. 'The chronic issue of poor property and building management is due to the quality and commitment of the building managers, not the quantity of licences,' he said. To address this, Law proposed property management exams at different levels, like the LCCI for accounting, to help employers assess candidates' academic qualifications. 'This structured approach would enhance the evaluation of managerial capabilities.' Secondly, he suggested that licensed property managers should place a bond when handling finances. 'Unlike unlicensed managers who must post a bond, licensed ones don't, which affects their commitment,' he said, pointing out the imbalance in the current system. Meanwhile, The Housing and Local Government Ministry had earlier said it is considering introducing a law to address abandoned commercial properties and to improve consumer rights protection, says its minister Nga Kor Ming. He said Sofo and Sovo properties are not covered under the current Housing Development (Control and Licensing) Act, which is limited to residential developments. 'Due to the absence of legal protection, buyers affected by abandoned projects under these categories often find themselves with no legal avenue for recourse. 'Following extensive engagements with industry professionals, NGOs and other stakeholders, the ministry has decided to study a new law known as the Real Property Development Act (RPDA) to resolve this issue,' said Nga in his speech at the StarProperty Real Estate Developers Awards 2025 on Thursday. Nga said the RPDA will include certain commercial developments which will safeguard the rights of property purchasers. Nga also said his ministry is mulling the Building Managers Act to address the chronic issue of poor property and building management. At present, he said there are only 594 firms licensed to practise management, serving 26,334 strata schemes or 2.91 million strata units in Malaysia. 'This highlights a serious gap where there are insufficient licensed firms to effectively manage all existing strata schemes. As a result, many property owners and tenants face significant challenges due to declining property values caused by poor property management,' he said. 'With the Building Managers Act, along with the soon-to-be tabled Urban Renewal Act, we are committed to addressing the root problem of aged, dilapidated urban buildings,' he added. As of March, the ministry, through the Taskforce on Sick and Abandoned Private Housing Projects, has successfully revived 1,044 private housing projects nationwide worth RM100.1bil in total, benefiting 124,539 homebuyers.
The Sun
05-05-2025
- Business
- The Sun
Malaysia's BNPL: How tech preys on financial vulnerability
AS Malaysia's digital economy flourishes, a new financial trend is transforming the way consumers shop: Buy Now, Pay Later (BNPL). Once seen as a niche payment option, BNPL has rapidly gained traction, especially among young Malaysians, thanks to its integration with major e-commerce platforms and mobile apps. However, as usage surges, so do concerns over its long-term consequences, especially with the extent of its proliferation into businesses that reasonably should not offer it, such as a recent BNPL advertisement by a fried chicken fast food chain in Malaysia. Big BNPL bang In recent years, BNPL services such as Atome, Shopee PayLater, Grab PayLater and Pace have embedded themselves into Malaysia's retail and digital ecosystem. These services allow consumers to split payments into interest-free instalments, often without the need for traditional credit checks. This model has proven immensely popular among the country's youth. According to a 2023 report by Bank Negara Malaysia, the adoption of BNPL services is highest among those aged 18 to 30. The appeal lies in its simplicity and accessibility, especially for individuals who do not own credit cards or lack a formal credit history, but do own smartphones and internet access. A key driver of BNPL's growth in Malaysia is its seamless integration into e-commerce apps. Platforms such as Shopee and Lazada offer PayLater options directly at checkout, creating a frictionless experience that encourages impulse purchases. Meanwhile, Grab PayLater extends BNPL services beyond retail, letting users defer payments on ride-hailing, food delivery and in-store QR code purchases. This level of integration has been shown to boost conversion rates and increase average basket sizes for merchants, according to industry insights from BNPL providers. For brands, offering BNPL has become a competitive necessity, particularly in sectors such as fashion, electronics and beauty. This is a financial model that thrives on technology. Algorithms assess eligibility in seconds using alternative credit scoring methods, while mobile apps make instalment management intuitive and accessible. With push notifications, gamified reward systems and personalised offers, many platforms nudge users towards frequent use without fully highlighting the financial risks. Despite its perks, BNPL is increasingly being scrutinised for fostering unsustainable financial habits. As many BNPL providers do not report to central credit agencies, debts can accumulate unchecked, until missed payments trigger late fees or third-party collections. Predatory for vulnerable demographics The Federation of Malaysian Consumers Associations has also voiced concerns, with CEO Saravanan Thambirajah highlighting that the younger generation are particularly prone to impulse spending via BNPL due to its 'illusion of affordability'. The ease and accessibility of BNPL services disproportionately impact younger and lower-income Malaysians, who are often the least financially prepared to manage multiple instalment payments. Often at the lower end of the economic spectrum and lacking financial literacy, these consumers are frequently targeted through social media advertising and in-app promotions, framing BNPL as a lifestyle upgrade rather than a loan. According to data from Fintech News Malaysia, the majority of BNPL users report using the service for non-essential purchases, such as fashion items, gadgets and entertainment. While some platforms have introduced spending caps or payment reminders, consumer education remains limited. However, as more Malaysians embrace these services, the risks of debt accumulation, along with financial, technology and social media illiteracy must not be ignored. In a world of instant gratification with just a few swipes on our phones, the question remains: Are we buying convenience now and paying the price later? To quote Jay-Z: 'If you can not buy it twice, you can not afford it'. After all, just because you can buy now and pay later, does not mean you should.
The Sun
05-05-2025
- Business
- The Sun
Debt woes, online overspend
AS Malaysia's digital economy flourishes, a new financial trend is transforming the way consumers shop: Buy Now, Pay Later (BNPL). Once seen as a niche payment option, BNPL has rapidly gained traction, especially among young Malaysians, thanks to its integration with major e-commerce platforms and mobile apps. However, as usage surges, so do concerns over its long-term consequences, especially with the extent of its proliferation into businesses that reasonably should not offer it, such as a recent BNPL advertisement by a fried chicken fast food chain in Malaysia. Big BNPL bang In recent years, BNPL services such as Atome, Shopee PayLater, Grab PayLater and Pace have embedded themselves into Malaysia's retail and digital ecosystem. These services allow consumers to split payments into interest-free instalments, often without the need for traditional credit checks. This model has proven immensely popular among the country's youth. According to a 2023 report by Bank Negara Malaysia, the adoption of BNPL services is highest among those aged 18 to 30. The appeal lies in its simplicity and accessibility, especially for individuals who do not own credit cards or lack a formal credit history, but do own smartphones and internet access. A key driver of BNPL's growth in Malaysia is its seamless integration into e-commerce apps. Platforms such as Shopee and Lazada offer PayLater options directly at checkout, creating a frictionless experience that encourages impulse purchases. Meanwhile, Grab PayLater extends BNPL services beyond retail, letting users defer payments on ride-hailing, food delivery and in-store QR code purchases. This level of integration has been shown to boost conversion rates and increase average basket sizes for merchants, according to industry insights from BNPL providers. For brands, offering BNPL has become a competitive necessity, particularly in sectors such as fashion, electronics and beauty. This is a financial model that thrives on technology. Algorithms assess eligibility in seconds using alternative credit scoring methods, while mobile apps make instalment management intuitive and accessible. With push notifications, gamified reward systems and personalised offers, many platforms nudge users towards frequent use without fully highlighting the financial risks. Despite its perks, BNPL is increasingly being scrutinised for fostering unsustainable financial habits. As many BNPL providers do not report to central credit agencies, debts can accumulate unchecked, until missed payments trigger late fees or third-party collections. Predatory for vulnerable demographics The Federation of Malaysian Consumers Associations has also voiced concerns, with CEO Saravanan Thambirajah highlighting that the younger generation are particularly prone to impulse spending via BNPL due to its 'illusion of affordability'. The ease and accessibility of BNPL services disproportionately impact younger and lower-income Malaysians, who are often the least financially prepared to manage multiple instalment payments. Often at the lower end of the economic spectrum and lacking financial literacy, these consumers are frequently targeted through social media advertising and in-app promotions, framing BNPL as a lifestyle upgrade rather than a loan. According to data from Fintech News Malaysia, the majority of BNPL users report using the service for non-essential purchases, such as fashion items, gadgets and entertainment. While some platforms have introduced spending caps or payment reminders, consumer education remains limited. However, as more Malaysians embrace these services, the risks of debt accumulation, along with financial, technology and social media illiteracy must not be ignored. In a world of instant gratification with just a few swipes on our phones, the question remains: Are we buying convenience now and paying the price later? To quote Jay-Z: 'If you can not buy it twice, you can not afford it'. After all, just because you can buy now and pay later, does not mean you should.
New Straits Times
30-04-2025
- Business
- New Straits Times
Fomca backs egg subsidy removal, calls for consumer protection measures
KUALA LUMPUR: The Federation of Malaysian Consumers Associations (Fomca) has urged retailers to act responsibly and avoid imposing unjustified price hikes ahead of the government's decision to remove the egg subsidy starting Aug 1. Its secretary-general, Dr Saravanan Thambirajah, said the gradual withdrawal of subsidies should not be treated as a licence for opportunistic pricing, particularly when many households are still grappling with the rising cost of living. "Retailers, whether large supermarket chains or small businesses, must exercise ethical pricing practices and ensure any adjustments are based on actual changes in production or supply costs. "The gradual removal of subsidies should not be seen as a green light to impose unfair price hikes on consumers," he told the New Straits Times. Saravanan also called on industry groups and major retailers to lead by example by maintaining price stability and protecting consumer interests throughout the transition period. "Price transparency and fairness will go a long way in building public trust and supporting national economic resilience." Earlier, the Agriculture and Food Security Ministry announced that the current subsidy of 10 sen per egg would be halved to 5 sen starting today, and fully discontinued from Aug 1. The ministry said the decision was made following the stabilisation of production costs and improved supply conditions, including during the recent Hari Raya Aidilfitri festive season. Saravanan said Fomca welcomed the government's efforts to ensure long-term sustainability in the egg supply industry but emphasised that enforcement agencies must remain vigilant against profiteering. "We understand the need to optimise national spending and redirect limited fiscal resources to where they are most needed. "However, this must be accompanied by robust protections for the vulnerable, stable supply chains, and ongoing market monitoring to ensure the move does not inadvertently burden consumers." He said maintaining a consistent and sufficient supply of eggs in the market was also key to ensuring price stability. "The government must work closely with producers, distributors and retailers to prevent supply disruptions, which can lead to panic buying or artificial scarcity that drives up prices." Saravanan said the government should also consider increasing the quantum of assistance if prices of essential items show significant upward trends. "At the same time, we stress the importance of implementing proper safety nets, particularly for the B40 and other vulnerable groups who may feel the impact of price adjustments more acutely. "We also call on the Domestic Trade and Cost of Living Ministry to continue strict monitoring of the Consumer Price Index (CPI), especially for food staples. "Take firm action against any opportunistic price hikes that are not justified by cost increases, and ensure that pricing mechanisms remain transparent and fair." Keywords: News Food Malaysia Egg Eggs Nst Consumers Producers Cpi Subsidies Subsidy Fomca Pricing Retailers Federation Of Malaysian Consumers Associations Price Hikes Domestic Trade And Cost Of Living Ministry Agriculture And Food Security Ministry Saravanan Thambirajah Related Articles Nation 6 hours ago [UPDATED] Egg subsidy to end on Aug 1 [WATCH] Nation Mar 21, 2025 @ 6:49am Fomca backs cooking oil price stabilisation scheme pilot to curb subsidy abuse Nation Mar 20, 2025 @ 11:00pm Fomca: Traders will find ways to justify price hikes despite price controls [WATCH] Property Nov 18, 2024 @ 2:26am Fomca warns public on surge in fake house rental agent scams
