Implementation of Development Charge by Local Government of Malaysia: Implementation and challenges

• Main Authors: Ali, N (Author), Pin, SFC (Author), Rahman, NAYA (Author), Shaharudin, M (Author)
• Format: Article
• Language: English
• Published: 2017
• Subjects: developer; development charge; local government; market value
• Online Access: View Fulltext in Publisher

 Local government plays a major role in property development in Malaysia. Local government in Malaysia is enacted under the Local Government Act 1976 to provide public facilities and amenities to local people as well as to control property development at the state level. At the current practice, development charges have been imposed on property project carried out in accordance with the provisions of Section 32 of the Town and Country Planning Act 1976 (Act 172). The main purpose of the development charges is to provide and improve infrastructures, public facilities, and amenities as well as the wellbeing of the development areas. The charges would be levied to developers once the project approved specifically for the conversion of land use, the increment of plot ratios and density, which would increase the land value. The purpose of this research is to identify the issues and challenges in the imposition of development charges to improvise the current methods practiced. This exploratory research aims to come out with the best practices on development charge. A qualitative semi-structured technique will be used that focus on six (6) states in Malaysia which consists of 26 local governments that are currently implementing the development charges. All the primary data were gathered from respondents will be analyzed by using content analysis through interview session. There were four (4) main issues reveals from this research whereby lack of awareness among developers top the chart. Meanwhile, amongst the challenges faced by the local government pertaining to the development charges implementation are to strengthen the implementation procedures of development charges as well as and to increase the understanding of the importance of development charges. The findings, therefore, will come out with full understanding towards the practice of development charges in Malaysia among government sector, developers and other relevant parties.