“I believe the state should be more lenient to developers,” said Ng Seing Liong, a former president of the Real Estate and Housing Developers’ Association (Rehda).

“They should first try to understand why developers could not follow the quota rules instead of blacklisting them.”

Earlier this week, Selangor’s housing and culture committee chairman Borhan Aman Shah, told the state assembly that developers who did not meet Bumiputera quota requirements would be blacklisted from applying for the release of units under the quota and face heftier fines.

Ng said the state should be fairer to developers, adding that there were developments that exceeded Bumiputera quota requirements.

“What about locations with a 50% Bumiputera quota, where developers achieve 100% sales to Bumiputeras? Will they receive incentives?” he told FMT.

He proposed implementing an automatic release mechanism allowing unsold Bumiputera units to be offered to the general public if a project is 50% complete and Bumiputera buyers cannot be found.

Rehda president NK Tong had a similar view of the need for an automatic release mechanism and a framework to regulate Bumiputera quotas.

He said that without such a mechanism, there could be an increase in unsold properties.

“It might inadvertently raise housing prices for everyone, including Bumiputeras, as the costs of holding these unsold units are eventually transferred to the buyers.

“More alarmingly, the accumulation of unsold units could trigger cash flow issues for developers, potentially resulting in delayed, sick, or even abandoned projects,” he said.

Meanwhile, National House Buyers Association secretary-general Chang Kim Loong said the Selangor Housing and Property Board should adopt preventive measures to ensure that developers comply with Bumiputera quota requirements.

This includes making the directors of development companies sign a letter of undertaking and statutory declarations.