My Little Thots on Petrol Subsidy Issue and Suggestions for Revamp.

Dear All,

How will real estate marketers who need to travel a lot be affected when the government revamps its approach on subsidised fuels (petrol, diesel and LPG for others) soon?

With the world's crude oil price crossing US$125 per barrel, the review is inevitable. It is only a matter of time that this will happen.

However, my view is there are a number of measures that the Government can take so that the poor will continue to be helped and at the same time the rich will not feel being discriminated.

This twin objective, I believe, can be achieved through the clever use/programming of the smart chips in Malaysians' MyCards as follows:

1. that subsidised petrol and diesel shall no longer be enjoyed by any foreigners - those without MyCards to slot into the pump's card-readers shall pay unsubsidised price for fuel - petrol, diesel or LPG;
2. that only MyCard holders - i.e. individual Malaysians (not firms) regardless of income levels - who own motorcycle(s) or vehicle(s) (motorised boat(s) included) shall enjoy subsidised fuels up to a certain litres a month: a) say, not more than 50 litres/mth for every owner of motorcycle(s), no matter how many you own; and, b) say, not more than 200 litres/mth for every owner of vehicle(s), no matter how many you own; beyond which unsubsidised prices for fuels shall apply and the limits are subject to reviews depending, among others, on the amount of Malaysian's net export in petroleum and the world's crude oil price;
3. that if you are a Malaysian owner of both motorcycles and vehicles, your entitlement to subsidised fuels per month shall be the same as that of a Malaysian car(s) owner i.e. at not more than 200 litres/mth;
4. that any unused entitlement or balance thereof for any month cannot be carried forward or accrued for subsequent months or use - they are 'burnt off' at the end of every month.
   

JPJ records can be used to programme the smart chips in MyCards for this purpose so that each time petrol, diesel or LPG are bought at fuel kiosks/stations, those who qualified for subsidised fuels can slot their MyCards into the card reader in addition to credit cards, bonus link or petronas mesra, etc.

Once your entitlement for subsidised fuels for the month is reached, you pay unsubsidised rate for the rest of the month until your new entitlement arrives in the ensuing month.

This approach ensures that the poor are helped and are minimally affected, if at all, and the rich who pay taxes at higher brackets are not being discriminated from equally enjoying the benefits of their country's natural resources.

Foreigners too should have no complaints because when we Malaysians go to their country, say, to study thereby enjoying some subsidised education, they too ensure that we pay for it through employment bonds; when Malaysians own properties there, Malaysians pay 10% more in Property Tax (PT) by way of PT surcharge, when Malaysians drive into their country, Malaysians have to pay a certain levy presumably for clogging up their roads, Malaysians never pay the same tax rates as the locals anywhere...

So, it is normal for Malaysia's subsidies whether for fuels, foods or any controlled items to be enjoyed by Malaysians only. Many countries have long ago observed and practised this principle. It's certainly time that Malaysia do the same.

What you think, folks?

Douglas.

Registration of Negotiators - the Pros & Cons (3rd Update)

Hi Folks,

I was recently invited to attend a "forum" to give my views on the issue of "Proposed Registration of Negotiators". As due to some unforeseen events, I could not attend: this post became my 'transparent' contribution to the aforesaid issue - it was meant for the real estate agency fraternity:

"The following sub-issues, in my view, are relevant when we look at the main issue of "Proposed Registration of Negotiators" for Malaysian real estate agency practice:

1) Comparative Studies: What happens in other professions? Are the assistants of the other professionals (doctors, engineers, lawyers, accountants, etc) similarly subjected to a system of registration? If so, by which body - their statutory governing bodies, their duly constituted professional associations or an independent 3rd party? If the assistants of the other professionals are not subjected to any system of registration, why the assistants (a.k.a the Negotiators) of professional real estate agents in Malaysia must be subjected to one? Is there any urgent or compelling mischief out there that must be expeditiously addressed and remedied through such a proposed system of registration when there are many other mischiefs - bogus agents, licence-leasing, non-compliance with salary, compulsary EPF and Socso contributions and 40% commission ceiling for RENs, non-submission of Negotiators' Lists...etc. which require our focus and remedial actions? Are we not opening an unnecessary new front to further distract our focus and drain our limited resources?

2) Present Practice: What is wrong with the present practice of "submission of Negotiators' Lists"? Isn't it good enough to address/remedy the mischief, if any? If not, why not improve / fine-tune the present practice - introduced some years back by way of 2 Circulars of the Board - instead of introducing a system of registration which I presume to be similar to the present system of registration - introduced by statutory provisions of the BVAEA 1981 - of REAs (since the same word "registration" is being used), such fine-tunings as requiring:

• that reminders / warnings be sent when the RENs' Lists are not received; or,
• that all RENs' Lists are to be sent only by Recorded Delivery (AR Registered, Courier, Pos Laju, etc.); or, alternatively requiring that submissions of RENs' Lists be done only when:
• a) registering estate agency firms or changes to their business addresses;
• b) renewing yearly registration of firms; and/or
• c) whenever there is any change to the Negotiators' Lists (RENs' Lists) - thus, doing away with the present practice of half-yearly submissions of RENs' Lists even when there is no change to the Lists?
• that solid safeguards be introduced to prevent or minimise corruption/abuse of administrative powers - for example, licence-leasing or rules-breaking REAs who have pending Court cases bribing or using their "connection" to do backdoor filing or retrospective submissions of RENs' Lists which they failed to file in the first place at the material stipulated times must never be allowed to happen to subvert the course of justice - such as: by requiring that all RENs' Lists and their updates be filed with an incorruptible independent depository (Auditor General's office or ACA) within a specific timeline; and, by appointing a person of highest integrity to administer and maintain the "Register of Negotiators" on a non-renewable tenure of, say, not more than 5-year for a very obvious reason.

3) Which Body Should Do It? If a system of Registration of Negotiators is to replace the existing practice of "submission of RENs' Lists", which body should rightfully do it? Shoud it be the Board, the MIEA or a third party independent body (e.g. an independent auditors' office) not consisting of any rival practising REAs who can then have access to the information/contact details of Negotiators of other REAs totally avoiding any conflicts of interests, unhealthy windows of opportunities for abuse or unethical discreet staff-pinching altogether?

4) Will "Registration of Negotiators" Make a Negotiator an "Independent Contractor" - Instead of an Employee - Working For REA(s)? Presently, under our estate agency law, a Negotiator works for a REA as an "employee" under a "contract of service" instead of as an "independent contractor" under a "contract for service" as under our existing law it is compulsory for Negotiators:

• to be paid a monthly salary (Circular 1/2000);
• to be paid EPF contributions (Circular 2/96);
• to be paid Socso contributions if eligible (Circular ?)
• to work full-time and not part-time (Std 9.2.3);
• not to work independently of the REA firm (Std 9.2.2);
• to work under the REA's direction and supervision (Std 9.2.1 and defn. in MEAS 1999);

and, that the employer REA has to,..., at all times, accept FULL responsibilities for the actions of his Negotiators (Std 2.3.5).

How will this "registration of Negotiators" - if the registration also necessitates passing certain competency examinations and experience - impact or change the whole scheme of things including vicarious liablity of the employer-REA for the actions of his Negotiators?

These are the sub-issues which I have identified in this 3rd update to my original posting. Please identify more as well as offer your critical views on all or any of them.

Together, let's contribute towards a better profession tomorrow...Stay tuned for more!

Douglas GT Tan

Command of Languages and Global Competitiveness

Dear All,

In the recently concluded "Pan-Commonwealth Conference on Professiona Services Trade - Enhancing Global Competitiveness (Feb 19-21, JW Marriot, KL)" where some 80+ delegates from 30+ Commonwealth countries were among the 300+ delegates (of which I was one) present, the remarks by some distinguished speakers dawn upon me (and surely upon the many influential policy makers present there too):

• that a good command of English is important for global competitiveness: 2 of the speakers even mentioned that they would not have been the success stories that they are today had they not been competent in English.

That made me wondered whether it was for that reason that Maths and Science were taught in English for our Malaysian schools kids since some years back; but there are now calls for a review of this policy, to restore status quo ante...going back to the same old days. If that happens, will Malaysians' global competitiveness be affected in years to come?

If I have my way, apart from English, I would also want our Malaysian kids to be proficient in one or two other global languages (Mandarin included). Of course, as Malaysians we must all be proficient in our National language. The right and progressive balance must be struck for all Malaysians to be confident global players that add value to themselves and our country!

Views, please?

Douglas GT Tan

Registered Estate Agency Is Required By Law To Have Adequate Professional Indemnity Cover

Hi Folks,

Do you know that Malaysian Estate Agency law further protects you by requiring every registered estate agency firm - please see: Standard 2.2.13 - to have adequate professional indemnity cover?

You are only protected if and when you use the services of registered estate agents. Just like when you use a taxi, you are only protected by insurance if you use a legal taxi with mandatory insurance cover. Never use a bogus taxi or a bogus agent - for this obvious reason!

The real estate agent's professional indeminity insurance cover is against any claim for breach of professional duty which may be against the registered estate agent and/or their employees and Agents by reason of any Negligent Act, Error or Omission including the costs and expenses incurred in the defence or settlement of any claim.

The minimum cover is RM100,000.00. For a cover of RM250,000.00 for gross fees up to RM5,000,000.00, the insurance premium paid by the agency was more than RM1000 per annum. This amount just to protect you the consumers of professional services!

So, why use a bogus agent or its loosely-attached operatives who can all easily 'fly by night' with your money when you should use legal real estate agents and/or their employees or Agents whose details are all submitted to the relevant statutory Board (i.e. Board of VAEA) for its record and whose insurers are there to indemnify you against the risks mentioned?

Professional Indemnity Cover is therefore yet another reason why the Public should avoid the bogus agents or their 'gung-hoo' operatives.

It is Always Wiser to Use Services of Legal & Registered Estate Agents!

Cheers,
Douglas GT Tanhalim

Non-REAs Not Allowed By Law to Participate for Profit in Real Estate Agency Practice of REAs

Hi Folks,

When the Malaysian Real Estate Agency law sets out to protect the public from being served directly by non-REAs by introducing a system of registration of qualified people as REAs (Registered Estate Agents), the law is equally careful enough to ensure - through its legal provisions - that the public is not served even indirectly by non-REAS through some back-door arrangements.

Among the legal provisions to prevent back-door practice of real estate agency in Malaysia by non-REAs are Rule 91 and Standard 5.2.17.

Rule 91(1) prohibits Participation In the Profits of REA’s Practice by any Non-REA; whilst Rule 91(2) allows payment of a share of his commission not exceeding 40% to a member of his staff - whom Standard 9 termed a Negotiator - who is under his control and supervision to assist an REA in his real estate agency practice.

Rule 91(2): Notwithstanding Rule 91(1), a REA may pay a commission to a member of his staff who is under his control or supervision not more than 40% in aggregate of the fee in the transaction.

Again, to prevent "back-door" practice of estate agency by various illegal means (licence-leasing, sub-letting, etc), Std 5.2.17 unequivocally disallows any unauthorised person to carry on estate agency practice in the REA’s name without the REA’s direct and immediate control or proper supervision.

As it is now, the Malaysian Estate Agency law, as far as my understanding goes, disallows any non-REA from participating for profit in the practice of real estate agency in Malaysia in cohort with any Malaysian REA - non-REAs cannot even take up or subscribe for a minority stake in the equity of any registered estate agency (REA) firm of Malaysia.

Only a Negotiator who is duly employed as per, among others, Standard 9 of the Malaysian Estate Agency Standards 1999 or REA firm which enters into a legally binding co-agency agreement may be paid an agreed share (of not more than 40% for a Negotiator) of the commission earned from any deal assisted by the Negotiator or co-broke with the co-agent.

See, how strict it is the Malaysian Estate Agency law in protecting the public from being served by unqualified parties, "fly-by-night" opportunists, rogues and, in short, illegal real estate agents.

Deal only with Registered Estate Agents of Malaysia and their legally employed Negotiators - say NO to Illegal Estate Agents and Property Marketers in any disguise, forms or veils.

Cheers,
Douglas GT Tan

Recognised Qualifications for Registration as Real Estate Agents of Malaysia

Hi Folks,

Happy New Year 2008!

It's time to get cracking: eight days have passed since the new year dawned.

For fellow Malaysians, the early good news was that the Malaysian government was kind enough not to raise fuel prices for the time being (for as long as it could afford, so it was reported in the press).

But one thing for sure, crude oil price has gone past US$100/barrel; families with school going children must have also discovered by now that although the government has kindly waived all school fees and loaned all school children with free text books, families are ironically paying much more education fees than before: the list of PTAs(Parents-Teachers Associations)-imposed miscellaneous fees have gotten longer, causing the total quantum to go up on top of a separate list of "extra-curricular" text books and work books that children must buy (with cheques payable to a certain book store outside); there was also the irony of cooking oil shortage nationwide which the government has acted to resolve.

The average or low-income families, the way I see it, hoped that the authorities would play its watch-dog role for them by auditing (approving or disapproving) all PTA-imposed fees and their accounts, bread-winners of these families must also play their part by working doubly hard (2 jobs even like many in a southern republic) and smart early from the new year... You never know what other prices will go up shortly...

So, it's time to get cracking - the early the better for all families!

That aside, in my first post for this year, I want to give you the link which you can click on to check on the qualifications recognised for registration as estate agents or even valuers of Malaysia - as a follow-up to my post of Nov 9 2007 where I mentioned that "...only persons who meet the requirements stipulated in Secs 22A (& 22D) of the VAE Act 1981 shall be entitled for registration as real estate agents and be issued with the authority under Sec 16 to practise real estate agency" as the 1st safeguard the Malaysian Estate Agency law provides to protect public interests via a system of registration of duly qualified persons...

I suggest that all who are currently eyeing Malaysian estate agency business, do check your qualification(s) and eligibility out to avoid running foul of the Malaysian real estate agency law!

Visit this blog often to know more.


Cheers,
Douglas GT Tan

P/s:
Visit this Online Gifts Bay to shop for your Valentine's Day Gifts or gifts for any occasions for that someone special!

New Year 2008 Brings New Hopes As Well As New Challenges to Real Estate Marketers.

Hi Folks,

In just three days time, Year 2007 will be leaving us behind - hopefully, with sweet memories - and a brand new year will be arriving with new hopes, God willing.

But one of the earliest dampener for the New Year could well be new price hikes for fuels (petrol, diesel and LPG): the lower middle and lower income groups will, in my view, be quite hard hit because any steep hikes in fuel prices is likely to bring about a multitude of price hikes across a broad range of consumer items - many of which were already on the rise by 30% this year....hmmmm

That may also explain why many were so easily persuaded to join the recent spates of street demo - something by the thousands not so possible previously whatever the persuasions...

Tighter control on inflationary pressure and more economic measures to increase per capita real incomes across the board will be the sure way, in my view, to neutralise any extremist groups trying to fish in troubled waters...Just my 2 sen's worth.

Anyway, the new year 2008 will certainly bring us new hopes as well as challenges.

Hope that it will not be very hard on marketing people like you and I who need to travel quite a bit to fish for our marketing incomes...

For the new year resolutions, perhaps we can consider the possibility of new sources of income such as via Internet business:
1) if interested to know more about the whats, the whys and the hows of Internet business, there are structured posts in this blog: http://MoneyMakingViaInternet.blogspot.com; and,
2) when you are ready to launch an Internet business, visit:
a) http://GT-ibiz.com/domainname/ to grab a good domain name real cheap;
b) http://GT-ibiz.com/webhosting/ to grab a good hosting package;
c) http://www.GT-ibiz.com for all the web tools you need for Internet business.
3) when you have made enough money, check out http://www.eOneBay.com/ for all the great gifts you may want to send for various occasions and special reasons!

The links to all the abovementioned blogs and web sites can be clicked on the left of this blog.

May God bless us all in this New Year.

Cheers,
Douglas GT Tan