KUALA LUMPUR, Dec 13 — City Hall's (DBKL) open rejection of Putrajaya's moratorium on high-end property approval suggests the federal government can no longer control its agencies, a federal lawmaker said today.
Petaling Jaya Utara MP Tony Pua also said DBKL's position supported the view that the federal government's policy to suspend approvals for luxury property priced over RM1 million, was “hare-brained.”
The DAP national publicity secretary added that the agency's refusal to apply the ban announced by Second Finance Minister Datuk Seri Johari Abdul Gani was especially worrisome as KL and the Klang Valley were highlighted as areas with rising office vacancy rates.
“… DBKL’s defiance of a Cabinet directive demonstrates just how toothless Putrajaya’s is,” Pua said in a statement.
He then questioned how the federal government intended to enforce its ban ― which Johari has since clarified will be applied wholesale ― when a local authority can choose to ignore the policy.
DBKL's open refusal will also suggest to all other local authorities that they possess similar autonomy in deciding whether or not to apply the federal government's ban, Pua added.
The MP then pressed Putrajaya to address what he described as the Cabinet's “impotence”, saying it was necessary to ensure that all announced policies are observed by all relevant agencies.
“Otherwise, you may have the world’s best policy-makers and the highest paid consultants, but all would be wasted with a government effectively run by politically entrenched warlords and little Napoleons,” he concluded.
DBKL confirmed to four federal lawmakers yesterday that it will not adopt the government's recently-announced ban on new condominiums and office property worth over RM1 million, saying it was not possible especially in areas such as the Golden Triangle.
Johari announced the ban following a Bank Negara Malaysia report warning of a worsening supply imbalance in the property sector.
After initial confusion and early contradictions, Johari confirmed that the moratorium was wholesale and applicable nationwide.