Rehda opposes proposal on broadband facilities

[Vivian]

PROPERTY developers have opposed the government's proposed move to make the provision of broadband facilities compulsory for all new commercial and residential areas, saying it would lead to increased costs. Real Estate and Housing Developers' Association of Malaysia (Rehda) president Datuk Ng Seing Liong said making it mandatory for developers to install the broadband facilities will involve a "huge amount of capital as they will have to come out with an agreement with the Internet service providers (ISPs). "Rehda is of the view that compulsory provision of the facility is punitive to developers. While the ISPs will reap profits via the subscription, developers will have to fork out extra cost to provide the facility," he said in a statement yesterday. Deputy Prime Minister Tan Sri Muhyiddin Yassin had recently said efforts were being made to amend the existing Uniform Building By-Law 1984, to make the broadband infrastructure compulsory in all new commercial and residential areas. Ng said Rehda is of the opinion that not all house buyers are going to subscribe to the broadband service, especially in rural areas and small towns. "There could be some other alternative measures or rewards to encourage house buyers to subscribe to the broadband service instead of pushing the task to developers," he added. The association feels that the responsibility should fall on the ISPs who "have the proper facilities". "Rehda hopes that the government will understand the industry's predicament as the compulsory provision means extra cost to developers who are already burdened with other utility contributions to be paid," Ng said. He suggested that the government undertake a thorough cost benefit analysis study on the system before it is made mandatory on a broader basis and find a win-win solution.

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