All stakeholders must pay to revive abandoned projects: iPAM president
The Insolvency Practitioners Association of Malaysia urges all stakeholders to contribute financially to revive abandoned projects. Speaking at a Rehda Institute conference, iPAM president Victor Saw Seng Kee stressed the need for cooperation among developers, banks and regulators.
PETALING JAYA (Sept 10): All stakeholders must play a role in reviving abandoned projects, including contributing financially, said the Insolvency Practitioners Association of Malaysia (iPAM).
iPAM president Victor Saw Seng Kee raised the point during a panel discussion at the Real Estate and Housing Developers’ Association (Rehda) Institute conference on Wednesday, held at Wisma Rehda, Kelana Jaya from Sept 8 to 9. EdgeProp was media partner for the event.
“You need all the stakeholders to pay for it. All the stakeholders must find a way to contribute, each and every one. On this rescue project, making money depends on how you look at the whole thing and structure it. You’re going to look at all the components and work out how you can get everyone on board,” Saw stressed.
The session, titled “Financial Risks: Housing Laws & Strata Governance — What Banks and Developers Need to Know”, also featured OCBC Bank Malaysia managing director (real estate corporate banking) Mohammad Fadzli Ahmad, Rehda Malaysia vice-president Datuk Seri Charlie Chia Lui Meng and Housing and Local Government Ministry technical adviser Datuk Jayaselan K Navaratnam.
From a banking perspective, Fadzli said lenders need to assess not only the viability of an individual project, but also the developer’s other ongoing projects and their potential impact on cash flow. “A good lender or banker should always think ahead and consider what could happen if a project fails,” Saw concurred.
Jayaselan stressed that the purpose of regulation is to facilitate better management rather than simply impose restrictions. “The purpose of the regulation is not to evaluate, but to manage. That is why I highlighted that, at the moment, the system is willing to work with us and recognise that if a developer is classified as P1 and meets the requirements, we will allow them to proceed,” he said.
Panellists also discussed alternative financing structures, faster fund disbursement, project-level assessment and closer cooperation between banks, developers and regulators. They considered the role the government could play in facilitating the revival of distressed projects, particularly through approvals and other processes, rather than necessarily providing direct funding.
