Who pay?

We have a very interesting debate last week over who should pay either the developers or the buyers if an infrastructure contribution is imposed by the authority. This was brought up during the MBPJ-REHDA Workshop on Development and Planning Guidelines.

MBPJ is imposing various charges for the betterment of environment and capacity of infrastructure so that the existing infrastructure system can support the increased of development projects. MBPJ is in the dilemma as residents are only favoured of further high intensity development the present capacity of infrastructure can take it or if not, the improvement for absorbing the extra burden from new development. This is understood as many of the residents are residing here in PJ for such a long time and used to having a harmony, quiet and peaceful living environment. The encroachment of new development and newcomers are bringing in new changes to their life style and daily routine. They are asking to have status qua and prefer not to have changes. While this sentiment is understood, the residents also acknowledge that development trend is unstoppable and hence agree to permit some form of development provided that the capacity of infrastructure is sufficient and traffic system is in place. Hence, the charges for improving the infrastructure, the green fund, the development charge and etc are imposed by MBPJ for carrying out works to improve the surrounding environment.

While developers agreed such necessary for improving the infrastructure, they are of opinion that the quantum should be within reached of the developers or else the extra financial burden would be passed down to the buyers. If this is the case, some participants reckoned that the effort on providing affordable houses will be greatly affected. However, some also argued that the contribution is neccesary as the sum is meant to improve the quality of environment and to not deteriorate the environment further in which it will have bearing on the property value of the area. Since it will benefit the developer as a whole, they should absorb the extra cost.

The ultimate for residents is provision of sufficient infrastructure capacity or else no development which is creating more problem can be allowed. For MBPJ, improving the overall quality of environment by balancing new development with existing one within the carrying capacity of infrastructure is critical. For developers, bottom line is of course the $ and cent, the viability of the project. It is difficult to strive a balance, but everybody has no choice but try to compromise for an amicable solution.