This article first appeared in The Edge Financial Daily, on January 15, 2016.

KUALA LUMPUR: The Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan said he expects some cuts to the allocation for his ministry in the revised Budget 2016, which Prime Minister Datuk Seri w Najib Razak is expected to announce on Jan 28.

Budget 2016 was first announced in October last year, when the government’s base assumption for crude oil price was at US$48 (RM210.72) per barrel. Najib announced last week that the budget would have to be recalibrated to reflect current global economic developments and the lower price of oil now.

It is expected that the revised budget will be on the base assumption that crude oil averages US$30 per barrel.

“Generally, I believe there are some programmes in the budget [allocated to us] that we might be able to consolidate, [while] some programmes we can delay. So there will be some adjustments in terms of the ministry’s budget.

“[But] I hope there will not be any serious cuts in terms of budget for housing. Housing is an industry that can be a catalyst to the economy,” he said.

Abdul Rahman added that all parties should put their differences aside and stop politicising the issue to properly address the global economic headwinds that are affecting the country’s interest.

“We understand the headwinds faced by Malaysia is very real, following the decline of oil prices to US$30 per barrel. This is a real issue, and no longer something we should be making fun of or politicise.

“Now is the time when we have to be united. Put aside our differences, whether you’re the opposition, NGO (non-governmental organisation) or the government. We need to be united to ensure the government will be able to take decisive action in handling this issue,” he said.

Under Budget 2016, the ministry’s allocation included a sum of RM863 million to build 22,300 units of apartments and 9,800 units of terrace houses under the People’s Housing Programme, and RM200 million for the First House Deposit Financing Scheme.

The ministry was also allocated RM40 million for the revival of abandoned low- and medium-cost private housing, and RM155 million for the maintenance of low-cost public housing and the 1Malaysia Maintenace Fund.

Abdul Rahman was speaking to the media on the sidelines of a strata management seminar entitled “The Good, The Bad and The Ugly”, organised by the Real Estate Housing Development Association (Rehda) and the Building Management Association of Malaysia (BMAM).

The seminar was aimed at educating stakeholders on the Strata Management Act 2013, which came into force in June last year, and to get feedback on shortcomings — if any — of the new law.

At a press conference earlier, BMAM president Tan Sri Eddy Chen urged that a board of building managers be set up as a regulatory body to protect stakeholders’ interests.

“We believe a board set up under the [ministry] would be most appropriate, given that we come under the purview of the Commissioners of Buildings (COB),” he added, and pledged that BMAM will assist in the setting up of the board, hopefully together with other stakeholders such as the joint management boards and committees.

In his keynote speech at the launch of the seminar, Abdul Rahman said he supported the idea of forming the board, and suggested that building managers register with the COB in the interim before the board is set up.

The suggestion was commended by BMAM, with Chen saying that it gives some form of recognition and legitimacy to building managers.