To Carry On The Business Of Property Development Companies in Malaysia

To carry on the business of property development companies in Malaysia, it is necessary to have a sound understanding of the regulatory framework governing the sector. In addition, developers must have a good track record and be able to demonstrate their financial capability to undertake projects.

The Malaysian property development sector is governed by the Town and Country Planning Act 1976 and the Housing Development (Control and Licensing) Act 1996. All developers must be registered with the Board of Valuers, Appraisers and Estate Agents Malaysia and obtain a licence from the Ministry of Housing and Local Government before they can commence operations.

In order to obtain a licence, developers must have a minimum paid-up capital of RM5 million and a minimum net worth of RM10 million. They must also submit audited financial statements for the previous three years, and provide a bank guarantee of RM1 million.

In addition to the financial requirements, developers must also have a good track record, with at least three years' experience in undertaking similar projects. They must also submit a feasibility study and a marketing plan for the proposed development.

Once licensed, developers are required to comply with various regulations, including the submission of progress reports and the payment of levies. They are also required to obtain planning permission