MANDATORY BUILD-THEN-SELL CONCEPT WILL HAMPER PROPERTY INDUSTRY GROWTH

KUALA LUMPUR, April 9 (Bernama) -- The mandatory build-then-sell (BTS)
concept will hamper the growth of the property industry as well as the country's
economic growth, says the Real Estate and Housing Developers' Association
Malaysia.

Sam Tan, an association member, said a significant number of small and
medium sized developers would go out of business as the concept was very capital
intensive to implement.

"A developer who is able to build 300 houses under the sell-then-build
concept will now only be able to build one-third under the BTS. Numbers of units
launched will inevitably reduce," he said at "The Edge Investment Forum on Real
Estate 2011", here Saturday.

Tan, who is also Executive Director of Ken Holdings Bhd, explained a supply
reduction in the housing sector would greatly impact the economy as the sector
drives RM20 billion (US$6.66 billion) in economic and business activities.

"A proportion of the country's Gross Domestic Product will be wiped
out. Bankers will lose substantial income from end-financing and income for
state governments from conversion and future quit rent or assessment reduced,"
he said.

See Hoy Chan Holdings Group Director Teo Chiang Kok said full
implementation of the BTS concept would push property prices higher as
developers would factor in price and additional risks into their cost.

He said, theoretically, BTS was ideal but practically not yet sustainable.