KUALA LUMPUR, Feb 24 — The National Housing Buyers Association (HBA) is not in favour of the government’s proposal to introduce a law requiring its agency handle a two-month security deposit for rented properties.

HBA secretary-general Datuk Chang Kim Loong indicated that the move would add more layers of red tape and inconvenience both property owner and tenant in the long run, The Star reported today.

"If the owner needs funds to carry out repairs or settle unpaid bills, how long will the process take? What about the tenants who usually use the deposit for another property, when will they get their money?

"The whole process to file the claim, the bureaucracy, then going to a tribunal, will take months and does not benefit owner or tenant.

 ”Knowing government agencies, it is never easy to get your money back,” Chang was quoted saying in response to the government’s proposal.

The Housing and Local Government Ministry is seeking feedback on the proposed legislation through the Malaysia Productivity Corporation to determine the feasibility of the proposal for rented properties.

In its document titled Proposed Survey and Drafting of the Residential Tenancy Act, the ministry suggested that a Comptroller of Residential Tenancy be authorised to manage the security deposits that would be parked under a neutral agency.

According to the ministry, this would better resolve any conflict between landlord and tenant later.

The ministry said that the security deposit was to be returned to the tenant once the tenancy agreement expired, provided there were no expenses that needed to be deducted.

In the event of a dispute, the matter will be referred to a tribunal.

Chang said the ministry was dabbling in something it was not equipped to handle.

He pointed out that there were 198 abandoned housing projects that had not been resolved. 

He also pointed out that the ongoing survey had reached out to only 3,119 respondents.

 ”In a nutshell, the sample size is only reflective of 0.009 per cent of the total population in the country.

"The survey is being conducted among 87 per cent of a certain ethnic group within the Klang Valley only. Other cities, towns and capitals of various states in Malaysia are not involved,” he told The Star.

"Hence, the validity of the survey and random sampling create doubts. Compounding the problem is that out of the 3,119 respondents, 2,015 or 65 per cent of them are tenants, indicating that the survey may be skewed towards tenants’ interest,” he added.

But Chang acknowledged that the proposed Bill had several commendable clauses and listed the establishment of a tribunal to mediate disputes as mitigation process in courts could be too costly.

The survey has been distributed to stakeholders including the HBA, Real Estate and Housing Developers Association, management committees, joint management bodies, and resident associations, among others, The Star reported.

The closing date for feedback is February 28.